Switched from flat retainers to performance-based pricing after a client landed a $50k deal

I always thought flat fees were safer until a client made way more money from our work than we did. After 6 months of watching their revenue climb while ours stayed flat, I pitched a 10% cut of new deals. Has anyone else made that switch and seen it backfire?

2 comments

2 Comments

verac4912d ago

Did you put any protections in place for when a deal falls through or a client ghosts after closing? I've seen some horror stories where agencies jumped to performance pricing and then the client refused to pay when the sale actually happened. The 10% cut sounds solid on paper but what happens if they land a $50k deal and then the customer cancels after a month? That could get messy real fast if you don't have a clear agreement on when your payment is locked in.

oscarm2411d ago

Yeah that's kind of like when I tried to pay my barber based on how good my haircut felt that week.