Business Entrepreneurship Consulting

Million Dollar Consulting: The Professional's Guide to Growing a Practice (Summary)

by Alan Weiss

A client asks you for a proposal on a project that could save them $10 million. You estimate it will take you 100 hours of work. Do you charge them for the 100 hours, or for a percentage of the $10 million? Alan Weiss argues that charging for your time is the single biggest mistake consultants make, trapping them in a cycle of endless work for limited pay. The key to a seven-figure practice is to stop selling your effort and start selling the value you create.

Never Charge by the Hour

Hourly or daily rates commoditize your expertise and penalize efficiency. Instead, you should price your services based on the value and outcome you provide to the client, a concept Weiss calls 'value-based fees'.

Instead of quoting a client $150/hour for 100 hours ($15,000) to streamline their sales process, identify that the project will increase their revenue by $1 million. You can then confidently propose a fixed fee of $100,000, which the client sees as a stellar 10x return on their investment.

Sell the Destination, Not the Trip

Don't write lengthy, detailed proposals for free. Instead, gain 'conceptual agreement' with the economic buyer on the project's objectives, metrics for success, and value before you ever write a formal proposal.

A prospect asks for a detailed plan to improve team morale. Instead of writing a 20-page proposal, have a conversation that ends with this question: 'If I can deliver a 25% reduction in employee turnover and a 15% increase in productivity, representing a value of $500,000 to you, would you invest $50,000 to make that happen?' If they say yes, the proposal is just a one-page confirmation of that agreement.

Only Talk to the Person Who Can Write the Check

Wasting time with gatekeepers or lower-level managers who can't approve your fee is a death knell for a consulting practice. You must always identify and build a relationship with the 'economic buyer'—the person with the ultimate authority and budget for your project.

A Director of Training asks you to propose a leadership workshop. Don't just talk to them. Insist on a meeting with their boss, the VP of HR, who actually controls the budget. The Director can say 'no' but can't give you the final 'yes' on a significant investment.

Build 'Marketing Gravity' to Attract Clients

Successful consultants don't chase leads; they attract them. By writing books, speaking, publishing articles, and building a strong brand, you create 'marketing gravity' that positions you as an expert and makes ideal clients come to you.

Weiss himself is the primary example. By writing over 60 books and maintaining a consistent public presence, he created a brand where high-level executives seek him out. He doesn't bid on projects; he's invited to solve problems.

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