Gee, that’s an obvious headline.
I have been struggling for some time with that concept. How could I prove to my clients the fees they paid me were worthwhile?
In the very late Nineties when the Internet bubble was at its just before bursting size there was little concern about revenue or, God forbid, profit. Branding and top of mind awareness were the false idols of every start-up and, truth be known, every established business. I kept trying to figure out how to meet a venture capitalist who would listen to my half-vast idea, write a few notes on a napkin and then give me $20 million to market it without a worry in the world of having a return on investment.
Unfortunately I owned a local manufacturing company at the time where employees actually made stuff with their hands and had health insurance. Boooring to V.C.s but I digress.
The decadence of that period – snakeskin wallpaper comes to mind – was truly mind-blowing. We are probably not going to see that again in my lifetime. The bubble burst as they are wont to do but it didn’t kill the online world. A little less than a decade later the Internet has affected our lives in ways we could not have imagined.
Maybe, if the economic tsunami of 2008 hadn’t occurred we would not be demanding that we seek a return on our money…that for every dime we pay out we receive four dimes back. It would have happened eventually so here we are.
So, how to make my services show ROI. I wracked my brain for months. Then it hit me and it was so simple I couldn’t believe I hadn’t thought of it before.
Pay For Performance. In essence I would not receive payment for the work I did unless the client received a tangible benefit and that would be revenue.
(NOTE: There is NO reason to have a website unless you expect it to make money for you. Period. Even so-called reputation sites should be designed to have a prospective customer or client contact you for something that results in money.)
Now I will have skin in the game just like my clients. And that is going to make it a lot more fun!