How to bill more than $100,000 in one year

Below is a transcript of an on-line conference with Peter Meyer discussing how to bill more than $100,000 in one year. The session occurred on December 19, 1995.

Peter is an internationally known writer, speaker and consultant. He is known for his work in team management, productivity and time management. He has written for magazines such as Business Horizons, Business & Economic Review, and has been profiled in Entrepreneur 12/19/95 10:19:56 PM Opening for recording.

PeterEva : That is the 7 step process

PeterEva : What I'd like to do is to start with a few comments

PeterEva : and then entertain questions.

PeterEva : Is that OK?

JoSoCal : please go ahead.

PeterEva : Thanks Joe. The first point is that the process only works if we do not offer solutions

PeterEva : early. In fact, we talk about ourselves for about 90 seconds in the first 4 steps.

PeterEva : Why? The point is that customers buy to get a solution, and we are not that solution, we are

PeterEva : only a path to it. In the same way that I do not care about how a hamburger gets to my plate

PeterEva : my customer really does not care how I got educated or about my past. They care about whet

PeterEva : her I know their problem and can solve it.

PeterEva : If I talk, how can I know about their problem? I cannot. The entire process is designed to

PeterEva : cause me to listen. Only after I have listened to I have the RIGHT to offer a solution.

PeterEva : Whew, my fingers are tired. Any questions yet?

JoSoCal : Yes... I have a few...

PeterEva : OK, let me continue

PeterEva : Joe, go ahead

Janet AC1 : ?

PeterEva : Joe first I think

JoSoCal : Ok...

JHeffner : ?

JoSoCal : In your description of the process, you said that you do a design session...

JoSoCal : is it too soon to ask what is covered in there?

PeterEva : Never too soon

PeterEva : The idea here is that you have done a survey

PeterEva : From that survey you now know more about the problem as others see it than anyone

PeterEva : else in the customer organization

PeterEva : So, you start a design session with a review of what you know and think you know, and

PeterEva : then you ask for agreement and correction. You will get both. In short order you will have

JoSoCal : Doesn't the survey require quite a bit of time invested by you before you even know you have

JoSoCal : the job. (sorry for cutting you off)

PeterEva : what you need - an agreed upon set of success criteria.

PeterEva : Let me finish this thought and then come back to that.

PeterEva : With the success criteria you can get the people in the room to start to build a solution. I

PeterEva : always offer a stalking horse to start. The key is that you have shown that you know the

PeterEva : problem as well as they do. This requires that investment that Joe asks about

PeterEva : And yes, you need to make it. However, if your close ratio is better than 75% and you can

PeterEva : get a premium for your time . . . . .

PeterEva : (Does that answer your question Joe?)

TomPrz : ?

JoSoCal : I guess it depends on the nature of the engagement...

PeterEva : How so Joe

JoSoCal : Many times the potential client wants to formalize an arrangement before they will "air

JoSoCal : their dirty laundry" to an outsider. Remember, an investment of your time is also an

JoSoCal : investment in their time.

JoSoCal : Who else has questions?

PeterEva : Yes, and we owe it to them to be careful of their time

JoSoCal : JHeffner?

JoSoCal : and TomPrz?

PeterEva : The point is that if we are clearly listening more than talking at the beginning

JHeffner : Prelimary research and cold calling don't seem to go together?

PeterEva : we will find that many of the barriers we are used to start to fall apart

PeterEva : Jheffner - I agree there. Many of us do not cold call at all, and live off of refs. Some do

PeterEva : not do that yet.

JoSoCal : TomPrz?

JHeffner : Your first step is cold calling?

TomPrz : Please talk a little more about prospecting, before that first call. How do you select

PeterEva : No, it is prospecting. That includes the research on warm prospects

TomPrz : for folks who want to talk, not listen?

JoSoCal : how's that for a segue???

PeterEva : Tom, who does not want to be heard?

TomPrz : Incredible. Pay me tomorrow.

PeterEva : On the other hand, how many people give you time to talk, or talk to you too much.

PeterEva : When was the last time you were called on by someone who actually listened?

DPoretzLtd : all the time

PeterEva : When you are that person, it gets a lot of attention!

Janet AC1 : ?

TomPrz : So ... tell me again how to find folks who want to talk to me about what I sell?

PeterEva : I would suggest that we do not do that

PeterEva : Instead, we go to clients and ask what they need. The key question is "what keeps you up

DPoretzLtd : ?

PeterEva : at night?" If you know, you can start to talk about business issues and then you are in

PeterEva : the right conversation.

PeterEva : However, you run the risk of finding problems you cannot solve. However, that is a risk that

TomPrz : Um ... you're going to clients with that question? How did they get to be clients?

PeterEva : most of us can deal with

PeterEva : Tom, I do this before they are clients.

Janet AC1 : You know nothing about them and go an ask what they need>

PeterEva : If I have an intro, I may simply say - so, I have helped Tom to really solve some issues,

JoSoCal : Peter, I think Tom is trying to figure out how to get that FIRST client.

TomPrz : RIGHT!

RDEFRONZO : Peter what you ratio of calls that become clients vs not?

Janet AC1 : Or the new client

PeterEva : but they are not your problems. So, what are your concerns with growth?

PeterEva : I am still on Tom's question. If you have no client reference, you can still do some

PeterEva : research, or do what I have done.

JoSoCal : One way that I have found that works is firmly defining your target market, find other non-

PeterEva : I have called people I did not know and asked about their business. Primarily in your

JoSoCal : competing professionals with the same target market, develop the relationship with them and

PeterEva : target market as Joe says

JoSoCal : then get the referral.

PeterEva : Whew, fast here.

JoSoCal : DP, you had a question?

PeterEva : However, if you know enough to start the conversation, you know enough to say you do not

DPoretzLtd : just a comment --

PeterEva : know enough about the prospect.

PeterEva : DP

DPoretzLtd : I think that a consultant CONSULTS

DPoretzLtd : the premise is that you have EXPERTISE

DPoretzLtd : if you have expertise, you should have built that while AT THE SAME TIME,

DPoretzLtd : you'be built your REPUTATION

DPoretzLtd : if so, the prospective client will initiate the call

DPoretzLtd : if not, maybe you're NOT REAFY top be a consultant

DPoretzLtd : and you should build your reputation and expertise while in the employ

DPoretzLtd : of a corporation , etc

PeterEva : My premise is that we add value. Expertise

DPoretzLtd : my premise as well

PeterEva : is essential, and can be used to get a call

PeterEva : with someone you do not know. Then, the process will cause you to listen to find out

PeterEva : what value is to THAT person. A

DPoretzLtd : I also think that many (too many) people become consultants before they are ready to be successful at

DPoretzLtd : it

PeterEva : after all, value is different for each of us

PeterEva : Tom, this all implies that you can call someone and say - Hey

PeterEva : I have some expertise, and I know your industry. If you have concerns, I can listen

PeterEva : and maybe help. BUT I do not know that. Will you gamble with me that I can help us

PeterEva : both??

PeterEva : Gutsy, but it can work

TomPrz : Thanks.

PeterEva : Yr Welcome

JHeffner : ?

PeterEva : Janet - you had a ?

PeterEva : Then JHeffner?

Janet AC1 : Take JHeffner

JHeffner : What about all those folks who don't know what they

don't know? How can you help them?

PeterEva : By asking them for information they should have.

PeterEva : For instance, if they do not know about networking, you might start a string of questions

PeterEva : that focus on the business issues involved and then lead to how we trade

PeterEva : info.

PeterEva : The key is not to manipulate

JHeffner : ...is your specific area of help...computery stuff?

PeterEva : So, if you ask, do not anticipate the answer so much you can not deal with it.

PeterEva : No, I am in exec development and helping consultants. Both as intangible as you can get

Janet AC1 : ?

PeterEva : Janet . . .

Janet AC1 : At what point DO you discuss fees?

PeterEva : In the design session. There they team (the stake holders and you)

PeterEva : have designed a solution. This means that you are identifying ALL the costs to that

PeterEva : solution. And, those costs include time, money, people.

JoSoCal : ?

Janet AC1 : But by that point you have given them the answers they need haven't you?

PeterEva : If your fees are only 100K, and the project cost is over 250K, then you are peanuts.

PeterEva : Yes, you have all developed the answers. AND

PeterEva : You are part of the team. That means that they will go to the person who knows

PeterEva : the issue the best, and them the best. That is YOU.

Janet AC1 : What's to keep them from implementing the solutions without you (or your fee)

PeterEva : Sounds hard, but it works.

PeterEva : Lets think about that. If the problem is the one that keeps an exec up at night,

PeterEva : And you are now in the very middle of the solution

PeterEva : Who would be silly enough to try and go forward without your value.

PeterEva : If you offer no value

PeterEva : Then you do not deserve the money.

Janet AC1 : What I'm getting at is that very often the value of the consultant is getting to what the real problem

PeterEva : However, this usually is not the case. You understand the problem better than anyone else

Janet AC1 : IS

PeterEva : by now.

PeterEva : Sorry Janet - continue please

Janet AC1 : the value of the consultant is often getting at what the problem is and identifying what

Janet AC1 : needs to be done to correct it. It seems you are saying to do all those things

Janet AC1 : before even discussing your fee.

PeterEva : Yes. Exactly

Janet AC1 : What do you do after identifying the solutions?

Janet AC1 : What that gets them to pay your fee

DPoretzLtd : ?

PeterEva : By then (step 4) the team wants to move forward

PeterEva : So, I type up the notes from the desigh session

PeterEva : and then that is the proposal. It includes all costs

PeterEva : Janet, does this answer your question?

JHeffner : ?

PeterEva : DPoretz, I think you are next

DPoretzLtd : another comment: if you are afraid that you give all you can in the first meeting, it's likely that

DPoretzLtd : you have little more value to offer - and they should

NOT retain you

Cryscass : ?

DPoretzLtd : If they understand that you will add value in the process, they WILL hire you-

DPoretzLtd : and you can leave the meeting retained -- without ever providing a written proposal

PeterEva : The key to all of this is that the process causes you to understand what is of value

PeterEva : JHeffner is next I think.

JHeffner : Doesn't a lot of what you are saying depend on their trust in your reputation?

PeterEva : Right up until you start listening!

PeterEva : As soon as you start listening, and they can see that, they care not for

PeterEva : your reputation. They care if you know and care about THEIR problem.

PeterEva : In other words, what works is not worrying about us, but about them. That is what is

JoSoCal : Dow

PeterEva : both attractive and what causes solutions.

JoSoCal : sorry... slipped on the keyboard.... Doesn't there need to be an initial (although brief) ..

Janet AC1 : ?

PeterEva : I have to stop, my battery just died. I will be back in 2. Janet - can you cover?

Janet AC1 : sure

JoSoCal : credential session, so they at least know that you are someone worth even discussing their

JoSoCal : deepest, darkest business issues with.

Janet AC1 : We'll post that back to the screen when Peter returns

Janet AC1 : While we're waiting, I think where we differ is in

JHeffner : :::passing out pizza:::

JoSoCal : I think that is where the referral from another trusted professional establishes the ...

Janet AC1 : how much gets given to the client before saying here's what I'll do for how much.

JoSoCal : credibility so that you don't even need to address it.

JoSoCal : Then you can focus on listening like Peter suggests.

Janet AC1 : The referrals and name in the industry would be important.

JoSoCal : DP, from our previous conversations, and from tonights, it seems that you suggest that

Janet AC1 : Welcome, Solid boss.. our guest for tonight, Peter Meyer

Janet AC1 : will be right back..

JoSoCal : unless you have the reputation where potential clients call you, you should'nt be consulting

Janet AC1 : he had to change a computer battery

Solid boss : Thanks Janet Just kinda popped in.

DPoretzLtd : nope - but I do suggest that the degree of success as a consultant is directly related to the

Janet AC1 : Of course you DO have to watch for those potential clients who want to pick your brain and not pay.

DPoretzLtd : degree of your repuattion, expertise, and network

Janet AC1 : Peter..

PeterEva : My apologies. I am back

JoSoCal : welcome back Peter.

PeterEva : Thanks.

CMSCOMMUNI : any one ever experiment with network marketing

JK749 : yes

CMSCOMMUNI : how do you like it

Janet AC1 : joe was asking ... Doesn't there need to be an initial (although brief) .

JK749 : The concept is sound, if you work it properly and treat it as a business.

Janet AC1 : credential session, so they at least know that you

Janet AC1 : are someone worth even discussing their

Janet AC1 : problem

Janet AC1 : (go ahead)

PeterEva : Yes. But I used to take far too long over this

CMSCOMMUNI : I am working in ACN/LCI

PeterEva : I think that we should not be talking about pedigrees, but about

JK749 : I'm not familiar with that

PeterEva : what we have actually done to help others. In other words, for companies

PeterEva : like yours, I have done this and that (use specifics)

PeterEva : and I do not know if that applies to you. However, tell me more about how

PeterEva : your business is different . . . . .

JoSoCal : Peter, you were gone when I suggested that this part of the conversation (credentials)

JoSoCal : is most effectively done FOR you by another professional who is trusted by the client and...

JoSoCal : can give you the referral into the decision maker.

PeterEva : Oh yes!

JoSoCal : Which is why a strong personal network of business professionals is ESSENTIAL to building a

JoSoCal : strong consulting practice.

PeterEva : I agree, especially if those professionals can talk about specifics

JoSoCal : ?

PeterEva : I would rather you told someone that I showed you how to get three deals you

PeterEva : thought impossible by following a process

PeterEva : I would prefer

PeterEva : you to say that I was able to help you offer a higher price when asked for

PeterEva : as discount, and get that higher price (using real numbers.)

PeterEva : Does that help?

JoSoCal : Yes.Before you are retained do you actually discuss solutions to problems or identify issues

Janet AC1 : ?

JoSoCal : that need to be addressed. Many times I feel that coming up with solutions prior to going .

JoSoCal : through a problem entirely can come across as a "know-it-all" not open to ideas.

PeterEva : I discuss old problems, old solutions, for about 90 seconds. Then we go to their

PeterEva : problems.

PeterEva : No one else's matters

PeterEva : I make that clear from the first second. Other solutions do not mean

PeterEva : I know the problems that you face. I must listen to find out.

PeterEva : Does the distinction make sense Joe?

JSA51a : Hi, looks like I just made it.

JoSoCal : But didn't you say that in the design session you come up with solutions, which is prior to

JoSoCal : talking fees?

PeterEva : Yes. However, it is after we have listened (the survey) and listened in detail. If I know

PeterEva : how each stakeholder

PeterEva : defines success, then I know much more than most.

PeterEva : That earns me the right to discuss solutions. Until then, I do not feel

PeterEva : that I have that right.

PeterEva : So, discuss past quickly, then listen a lot, then jointly discuss solutions

JoSoCal : Ok, but many of the situations that I come across are very complicated and coming up

JoSoCal : with the solutions is really a project unto itself (Phase I, so to speak).

Janet AC1 : That's exactly what I was getting at before :)

PeterEva : Yes, so then the success criteria is understanding the problem. If

PeterEva : during the survey you find this to be the case,

PeterEva : start to ask people how they define success, and

PeterEva : many times that results

PeterEva : in you asking people to set criteria for the intermediate steps.

PeterEva : In other words, the complexity makes it hard to define the ultimate criteria, so you

PeterEva : do as Joe suggests, and define the first phase. Starting

PeterEva : with the success criteria for that phase.

JoSoCal : So the key is to define "success" in bite-size chunks, not necessarily knowing how big each

PeterEva : Does that

PeterEva : whoops

JoSoCal : bite will be, but knowing that the whole meal must be "eaten".

PeterEva : Yes, like the elephant.

PeterEva : Does that help?

JoSoCal : Thanks, who has other questions?

Janet AC1 : How do you decide what to charge?

PeterEva : Three things contribute

JoSoCal : As much as they can afford <g>

PeterEva : 1 - I have min fees

JHeffner : ?

PeterEva : 2 - If I do not offer value at those fees, I have to

PeterEva : say sorry

PeterEva : 3 - I look at what the client gains, and make sure that my fees are in relation to that. If

PeterEva : I am too cheap - I get lost in the deal

PeterEva : Janet, does that help? Then JHeffner I think

Janet AC1 : Take JHeffner

JHeffner : Can you give us one specific example of how your process worked?

PeterEva : Yes, we just finished the process for a company in NJ

JSA51a : Excuse me, PeterEva what is your expertises?

PeterEva : We got there from a reference, and got ignored.

PeterEva : I got to the SR VP by asking what problems kept him up (literally)

PeterEva : We talked, and then I did a survey. Took 3 days, and they paid for it.

PeterEva : At the end of the survey we did a design session.

PeterEva : Just a sec JSA

Janet AC1 : ?

PeterEva : At the design session, we got the comment that our price was fair and they needed, and

PeterEva : they meant needed to bite the bullet. The key was when I asked the SR VP if I knew

PeterEva : his business well enough.

PeterEva : He smiled and said we do it.

PeterEva : The proposal was a single sheet of paper.

PeterEva : JSA - my expertise is exec development and working with consultants on this process,

JHeffner : How did you get him to go for the survey, though?

PeterEva : usually live.

PeterEva : JHeffner, it was easy. I asked him his success criteria. Then I asked if his team had the

PeterEva : same ones. And then I asked him how he knew. And then I asked him if they were key

PeterEva : to the solution to the problem.

DPoretzLtd : ?

PeterEva : He was suggesting a survey before I was done.

Janet AC1 : Before you said you did the survey and proposed solutions before talking about fees.. this sounds

PeterEva : DPoretz, before I change subjects, let me ask

JHeffner and Janet if we are complete

Janet AC1 : different

PeterEva : No. I did not discuss fees until the design session.

Janet AC1 : so how did y ou get paid for the survey?

PeterEva : The Sr VP bought the survey without knowing the price. He

PeterEva : knew the cost of not solving the problem, but that was not enough.

PeterEva : What mattered to him is that I offered to give him the money back

PeterEva : if I did not help him. He accepted that.

PeterEva : Does that help Janet?

Janet AC1 : Somewhat. :) Take DPoretz

PeterEva : DPoretz, please go ahead

DPoretzLtd : how many people in your consulting firm? and do you think there is a significant benefit in doing

DPoretzLtd : business as a firm with people other than just yourself?

PeterEva : 2 partners, many many contractors. Yes

DPoretzLtd : what are those benefits?

PeterEva : I know so very little. If I do not use others, then I do not give good value

PeterEva : Giving good value is all I can ever hope to do. That requires others

DPoretzLtd : but if you narrow narrow narrow your expertise, you can get higher value added fees as an individual

PeterEva : I can only get the highest value if I can solve the biggest problems clients

PeterEva : face.

DPoretzLtd : well, I'm not certain i agree

PeterEva : Would you pay $6K an hour for expertise or solutions?

DPoretzLtd : i don;t charge by the hour

JSA51a : I know I would pay for solutions

PeterEva : Actually the answer is not so critical as the focus on solutions. I apologize

DPoretzLtd : i am retained quarterly for expertise that leads to solutions

PeterEva : Then, you deserve the $$ as long as you deliver that path to solutions. Good work!

DPoretzLtd : question remians:

PeterEva : Yes

DPoretzLtd : assume that is the case -- is there benefit in adding people?

JSA51a : ?

PeterEva : I am not sure. There is benefit in havng them available to you, especially if you

PeterEva :

12/19/95 11:31:21 PM Opening Òpetermayuer#2Ó for recording.

cannot spell as I cannot. But really, all I want is access. Does that answer your question?

PeterEva : Just a sec JSA

DPoretzLtd : nope

PeterEva : DPoretz, I am sorry

PeterEva : can you restate it?

DPoretzLtd : i reallt wonder if there is equity build-up possible in a consulting firm

PeterEva : Not the way I do it.

DPoretzLtd : in other words -- what is the value of growing the firm's TOP line?

DPoretzLtd : if there is no equity build-up, then you want to go for the best BOTTOM line possible

PeterEva : Not sure. Perhaps my focus in so much on enjoying clients that I am missing that.

DPoretzLtd : and that is HIGH fees (from narrow niche) and low overhead (less - maybe no - people)

PeterEva : DPoretz. You have an interesting point.

PeterEva : Should I go to JSA?

DPoretzLtd : to me, right now - it is a major issue -- but move on - thanks

PeterEva : Thank you!

PeterEva : JSA, please

JSA51a : Excutive Development?

PeterEva : Yes

Janet AC1 : folks who just came in..

JSA51a : Is this a training and development type of thing?

Janet AC1 : IM's don't seem to be working..

Janet AC1 : We're talking with Peter Meyer about how

Janet AC1 : to bill more than $100,000 in 1996

JSA51a : And he seems to left the room.

Janet AC1 : oops.. he might have gotten locked up

Janet AC1 : I was a minute ago

Janet AC1 : he should be right back on.

PeterEva : I am sorry

PeterEva : I got dropped.

PeterEva : JSA - you were asking a question,

JSA51a : So is he talking about a training and development plan?

PeterEva : Please go on

Janet AC1 : System seems to be haveing problems tonight

PeterEva : Yes Janet.

JSA51a : Snow and blowing northerns

PeterEva : JSA, I am not.

PeterEva : Not snow either.

PeterEva : What we do is to identify

PeterEva : a problem with the exec, a problem

DPoretzLtd : will be back -- take care

PeterEva : that the team is struggling with. We show them

PeterEva : tools that will help solve it.

PeterEva : Does that help?

Cryscass : ?

PeterEva : Crys - please

JSA51a : What type of survey do you complete, open end, closed end or interview

PeterEva : Hold a sec. Cryscass, mind if I take this?

Cryscass : I didn't quite understand the "identify a problem with the exec" part

PeterEva : OK, that first

PeterEva : Most organizations

PeterEva : have a set of problems that seem to linger. It could be revenue, service, or even process.

PeterEva : Some of those are bad enough that the exec worries about them

PeterEva : a lot. I ask questions to get there.

PeterEva : To partially answer JSA, I use High Gain questions for that.

PeterEva : High Gain is a term from someone else, but the idea is thta

PeterEva : we ask questions that cause people to think. That gives new information, new for

PeterEva : both of us.

PeterEva : Often, "how would you define success" is such a question

PeterEva : Cryscass - does that help?

Cryscass : I think so

PeterEva : JSA - did I answer your question?

Cryscass : It's more of a problem FOR the exec, not with him - ha.

PeterEva : Cryscass - yes. Even if both are true.

PeterEva : <grin>

PeterEva : JSA - did I answer your question?

PeterEva : Any questions that I have not yet answered?

JSA51a : 6 K an hour, what is the price for small corps?

Cryscass : ?

PeterEva : JSA - I am not sure I understand the ?

Cryscass : Maybe you could help me understand your process in a hypothetical for my bus.

PeterEva : Cryscass - OK, then back to JSA

JSA51a : I am a CFO or was the CFO for a small S-Corps that is cash strapped right now, so I was

JSA51a : wondering what price for small cash strapped businesses?

PeterEva : Um, I would probably work out terms or shares or % of profit for you.

Cryscass : I'm a CPA, and my value added to a small corp might be to identify ways to improve bottom

Cryscass : line or cash flow.

PeterEva : Cash strapped is not unique to small business.

PeterEva : Cryscass, go ahead

Cryscass : But, to identify the potential solutions could be a major effort.

Janet AC1 : Hehehe.. there are days when I think it's synonymous with small business

JHeffner : I thought that that was the definition of small business! :D

PeterEva : Cryscass - are you suggesting that the time to solution might be too long?

JSA51a : Even when the Major Stockholders do not wish to or cannot provide sales projections?

Cryscass : I'm sort of combining the concerns raised by Jo and Janet.

PeterEva : JSA - if the problem is really critical, then we will work out a solution.

PeterEva : Cryscass - go ahead

Cryscass : By the time I identify the solution, lets say

Cryscass : accounts receivable are aged and too high

Cryscass : If I point that out as the problem, they may be ready and able to go to work on

Cryscass : the solution

Cryscass : without me.

PeterEva : JSA - The idea is not to solve any other problems

PeterEva : Cryscass, you are right

PeterEva : However, if you follow the steps through the survey before you come to solution, you will

Cryscass : Lets say it took me 3 or 4 days to look things over and come to the conclusion

PeterEva : find that you are deep into understanding that the rest do not have.

PeterEva : Please go ahead

Cryscass : First, I don't know before I look into the business whether I can add a value

Cryscass : Maybe there's a problem we/I can't resolve

Cryscass : Maybe he can't compete with another corp competitively.

PeterEva : Maybe

PeterEva : You will have to offer a different

Cryscass : You can't get to that point, or the conclusion/possible solution without sometimes a

Cryscass : major investment of time

PeterEva : Yes.

Cryscass : and then, if the solution is in identifying the problem, you've delivered already

Cryscass : Why would they feel obligated to pay?

PeterEva : 2 points.

Cryscass : yes

PeterEva : One is that we all gravitate to honest people

PeterEva : That means that we will probably be dealiong

PeterEva : with honorable people. If so, you may get paid for work if the

PeterEva : only value you offer is to

Janet AC1 : MAY get paid?

PeterEva : help them solve the problem with someone else.

PeterEva : Janet - if the person is not honorable,

PeterEva : your chances of getting paid drop anyway.

PeterEva : 2 -

PeterEva : We said earlier that it makes sense to break

PeterEva : these things up into pieces. You may find yourself adding REAL value

PeterEva : by simply

PeterEva : helping people understand their problems

PeterEva : And that is very, very valuable.

Cryscass : exactly

PeterEva : So, charge for that. Offer that

PeterEva : Your success criteria are identifying the problem and path to solution.

PeterEva : If the path includes you, great. If not, great.

PeterEva : If you meet the success criteria of

PeterEva : identifying the problem, then you should get paid.

JoSoCal : ????

PeterEva : Joe, please go ahead

Cryscass : brb

JoSoCal : The topic of this meeting was billing $100K next year...

PeterEva : Yes

JoSoCal : Typically consultants bill either on a retainer basis or by the hour...

PeterEva : Please continue

JoSoCal : if it is hourly, good rates might be $250 - $250 per hour...

JoSoCal : that is $200 - $250 per hour <g>

PeterEva : Got it. Go on.

JoSoCal : However, the key is setting the rate...

JoSoCal : and this is where DP was coming from (I think)

JoSoCal : 1) how does someone set an appropriate rate and ...

JoSoCal : 2) at $250 per hour and 2000 hours per year, that equates to $500,000 per year.

PeterEva : Do you want me to answer 1 first?

JoSoCal : Why stop at $100K

JoSoCal : Sure.

PeterEva : Oh, 2 is easy. Don't stop as long as you are having fun.

PeterEva : 1 - there are three things to consider, but if you are doing a

PeterEva : design session, then you are identifying

PeterEva : all the costs for the project, and since you understand the success criteria, you

PeterEva : understand the benefits to your client.

PeterEva : Tell them all of this.

PeterEva : Then, look at the numbers, and decide what is fair for you for the whole project

PeterEva : Then, ask if it is fair.

PeterEva : If it is, then ask to get it.

PeterEva : Joe, does that help?

PeterEva : I am lucky in that my clients usually do not have budget for me, so we

PeterEva : are able to look solely at the problem.

PeterEva : It is much better for all that we discuss business instead of budget.

PeterEva : Again, thanks for your kind attention this evening.

JoSoCal : Peter, 'tis a nice situation to be in; however, the majority of consultants I don't think

JoSoCal : are in that situation.

PeterEva : I agree. However, any of us can ask the questions that lead to a business discussion instead

PeterEva : of a budget one

JHeffner : Good nite! :)

Janet AC1 : Night everyone

Cryscass : Good night.

12/20/95 12:11:54 AM Closing Log file.