This article isn’t meant for those who have their own product.
This article is a message for service providers who bill their clients on a monthly basis.
I’ve met so many service providers in all industries that feel more like parasites sitting on your monthly payroll, without providing any real value.
When I think about why is that, sure, sometimes the answer is: they simply can’t do better. Their qualifications are limited, or their type of service is just really hard to measure in terms of value.
Most of the service providers—and this spans from sales to technicians—are failing to produce value because it’s not in their interests to do so.
It is the classical “employee” attitude: if I get paid an amount X whether I try harder or not, why should I bother?
These types of agencies and service providers do not care if I win or not—their only goal is to keep my account on their retainer and sell me more of their stuff.
Obviously, that’s not the right attitude.
But how do you change that?
The answer is: performance based models.
A basic example of a performance based model: I pay a marketing executive a sum X if and when I receive a Y amount of clients. Otherwise, I don’t pay them.
There are myriads of different versions of performance based models that most industries and service providers can find. Usually, it’s a product of combining interests and compromising between the client and the service provider.
But the essence is always the same: you win, I win.
Only when such a model is established, the service provider is truly interested in seeing you succeed. Only then they start asking the right questions, and start delivering real results.