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Non-traditional
remuneration models



A confession from the trenches
                                 is onderdeel van
Contents
• What forms of „non-traditional‟ models are
  there (roughly)?
• What restrictions do we encounter when
  adapting these models?
• How do clients often (re)act on non-
  traditional models?
• What traps? Shame on me…


                                      is onderdeel van
What forms?




              is onderdeel van
What forms?


co-shareholder:
In exchange of difference in commercial hourly
rates/cost-rate a shareholdership is acquired
example: The Voice




                                            is onderdeel van
What forms?


co-makership:
negotiated definition of performance-based
component vs regular rates (bonus/malus)
example: ING forms




                                             is onderdeel van
What forms?


performance/volume-based:
rather conventional and not really non-traditional
remuneration-model, relevant nontheless




                                              is onderdeel van
What restrictions?




                     is onderdeel van
Restrictions
• Non-traditional remunerations are often
  not supported by corporates (accounting
  barriers);
• Financial outcome for client is more
  expensive than traditional model (makes
  you wonder…);
• Your pipeline;
• Measure of influence on outcome.

                                    is onderdeel van
Clients reaction?




                    is onderdeel van
Client‟s reaction
Depends completely on culture:

• Corporates: “Interesting. But...”;
• Start-ups: “YES, PLEASE!!”;
• Entrepreneurial: “OK, let‟s talk”.




                                       is onderdeel van
What traps?




              is onderdeel van
What traps?
• Client‟s cooperation is less than expected:
  agree upon mutual actions and time spent/invested.
• No clearly defined framework on which
  remuneration is granted:
  write down agreement
• Client abuses proposal as „regular discount‟:
  hard to beat… one lesson is enough.
• No back-up/alternative when things go
  astray:
  part of the plan must be an alternative (regular billing).

                                                          is onderdeel van
Thank you very much
for your attention


                        Wim Andréa
        director strategy & creative




                                       is onderdeel van

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