In InPlanta we have experience working in projects where compensation consists mainly (or completely) in success fees – that is, we are only paid if the goals agreed are reached.
This type of work is frequent in the purchase and sale of companies, fundraising, etc. The key points is ensuring that the goals are very clear and verifiable, with full alignment between the parties’ respective incentives.
In this type of work, a certain amount of time must be devoted at the start to the formalisation of the agreement, to avoid potential problems when assessing the success attained.
There is a widespread belief that this kind of relation is “cheaper” or spurs consultants on more. However, the key point consists in understanding that this model is only suitable if certain conditions are met for both parties, as success is shared.