Scenario :: Results Based Pay




So, what is the big deal about Spherical Angle?

That is a great question. It is a major component in your future success. But rather than talk about a tool, lets talk about potential.

Are you sitting down?

Good. Let me describe a typical prospect for our services. WWW.THROUGHPUT.US (TPU) is a consultancy created for one simple purpose: produce results for our clients. Measurable results. "WOW!" kind of results that encourage our clients to pay our extreme fees with very large smiles on their faces.

Our fee structure includes a 100% "results based" option. But it is not for the faint of heart. However, perhaps you are one of those entrepreneurs that has an ego to match their abilities... and further more, you understand how percentages work. A number of years ago, Ed McCullough and I were having a cup of coffee at Starbucks (south end of Hilton Head Island, SC). I mentioned that for a particular project, that I would pay a 10% commission forever. He said, "Forever?" As only Ed can. My response was profound: "Yes. Forever. Remember I get the other 90%"

A typical implementation

  • Less than $100,000,000 in gross annual revenue
  • Established name recognition in the marketplace
  • Privately held; Founder is President and/or CEO
  • Accounts Payable exceeds Accounts Receivable
  • Using MS-Project to manage Projects
  • Headquartered in one of the 48 United States
  • Headquarters near a Starbucks
Those that have taken the time to read my book know that I am serious about the Starbucks remark. First, the company is well run. Has great health (and other) benefits for its employees, most of which are part time. So don't tell me you can't do it! Second, I love the atmosphere for thinking. Third, in software development, you learn the value of pizza. In business, the fuel needed to put in long hours is coffee. But I digress...

How would 100% results based pay work, exactly?

Allow me an example. Your organization did $60 million last fiscal year. You can prove to yourself (and me!) that you should grow to $66 million with out my help. So, we set a base line of $66 million in annual revenue. I show you how (with my help) you can do at least $80 million with almost no increase in fixed costs, and then, drum roll please, you pay me 20% of the increase above the base line. In other words, You get 80% of the additional $14 million. Yes, $11.2 million. Yes, depending on your product and industry, maybe half of that goes to variable costs. So, an extra $5.6 million straight to the bottom line. Impressive.

Instead of the 10% profit before taxes you would post on the projected $66 million, you should make over 15% on gross sales (before taxes). Instead of just $6.6 million on your bottom line, it should jump to over $12.2 million. Not bad, if it is possible.

Well, it is possible. With the proper focus. And I am willing to bet my share of those revenues (yes, my $8.8 million). Not willing to part with that kind of money? Fine, cover my fixed expenses and pay me just 10% ($4.4 million).

Now that your head is spinning, you can understand why I ask you to sit down.

Maybe these numbers are too large for you. Cut them in half. Better yet, lets say your business is just one-tenth the size mentioned in this example. The great thing about math, simply divide every number by ten. You had gross sales of $6 million this year? You expect to grow t0 $6.6 next year? I am telling you that instead of $660,000 in profit before taxes, I can help you make $1.2 million on sales of $8 million. And we both grin all the way to the bank.

The amazing part? I can prove this works for your business in just 90 days.

No, not produce all the results in 90 days. But show you enough of the proven system that within 90 days you are willing to "stay the course".

Want to learn more? Call me.

Before your competition does...

-ski