All of us are consumers and we want quality, service and value in exchange for the money we pay for products and services. Unfortunately, consumers do not always get what they want. All of us have experienced the same disappointment when we receive mediocre results.
It begs the question: βWhy do some professionals only get paid when they perform, while others get paid even when they fail miserably?β Why do we as consumers allow this disparity to occur? Letβs look at a few examples.
Most Realtors only get paid when they have successfully helped someone buy or sell a house. The Realtor may invest thousands of dollars in time and money listing a home that never sells, or into a buyer who never buys. The Realtor only gets paid when they perform, as it should be.
The majority of personal injury attorneys only get paid if they are successful in collecting money for their clients. If they lose the case, they do not get paid.
Conversely, most financial advisers get paid based on a percentage of the assets they manage. They still get paid even when the assets they manage decline in value. Should they get paid even when their clients lose money? Why isnβt financial advisersβ income based on the growth of the portfolios they manage?
Why do marketing professionals still get paid even when their ideas do not generate a single new customer for their clients? Why donβt they get paid a percentage of the incremental profit they generate for their clients?
We as consumers should not pay for poor performance. When we do, it creates a safe haven for bad businesses that should not survive in a free enterprise system.
Think about your business for a moment. Can you change your pricing policies to mirror the results you deliver?
