When a £100k fee is good value
Context is everything
I’ve worked with search firms charging £100k+ fees.
Are they 10x better than an average recruiter? Do they do 10x more work?
No on both counts.
There’s a simple answer to why their fees are so high: their clients know their next board level hire will make a multi-million pound impact, so £100k is good value in that context.
So what can you learn from this?
You probably can't start charging your clients £100k per placement… but you can make sure your clients see your fees in the context of their business success.
Once you’ve connected your work with your clients’ business goals - ideally those with nice big numbers against them - then you’re going to find it much easier to increase your fees.
So start asking about the impact that your work will make on your client's business. Then get them thinking about the value you're creating for them, and how much that is worth.
Once you’ve put everything in context, you’ll find it much easier to justify a good fee for your service. You’ll also find you’re treated more like a partner, which makes the whole process a lot easier. A smoother process at a higher fee… what more could you want?
If you want help to really understand the value you create, and the prices you can charge, then simply reply to this email and I will talk you through how I can help.
Jon
P.S. Your impact goes beyond the bottom line. Getting a new team member means the hiring manager is less stressed, can get more done, hit their targets, and still find time to see their family… so remember to include that when considering the context of the assignment.
If you want help to really understand the value you create, and the prices you can charge, then simply reply to this email and I will talk you through how I can help.