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Fee Split To Prevent Dispute #2
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A friend inside a healthcare company told me I should talk with the Medical Director about executive coaching for their physician executives. I presented to the client and he liked me. The problem was that one of my arms-length consulting friends had delivered coaching there before, and I didn't want to exclude her or have her take the business away from me. [To complicate matters, her husband was the man introducing me.]

I called the consultant and told her what was happening. I suggested a joint presentation to the Medical Director, which we accomplished. The result was a lucrative contract to deliver executive coaching to eight physician-executives. This is the memo I drafted to prevent future disagreements.

Audrea was going to handle the administrative side of the project, and I wanted our agreement to limit her work there, so administration did not exhaust our budget. I over-trusted a partner once on a big assignment, and the project profits evaporated into his checkbook.

Remember: this is an agreement between friends. If I were contracting with someone I didn't know or trust (which I would never do), I'd use a much stiffer legal document with teeth.


July 6, 20—

Fee Split for Technove Medical

  1. Sales Commission. 20% of total, ongoing gross revenue is a sales commission to be split 50% Audrea and 50% Bill. Example: if total revenue is $10,000, then 20% or $2,000 is commission: $1,000 to Audrea and $1,000 to Bill.
  2. Hourly Rate. Note: this means an effective billing rate of $240 per hour ($300 - $60 or 20%). If we hold a $300 billing rate, we will have to increase the total price of the project, which may make it too expensive.
  3. Testing & Assessment. Audrea will receive 90% of marked up assessment revenues. (10% goes to Bill as part of total sale.)
  4. Billable Time. Bill and Audrea will each coach four (4) MDs, and devote a roughly equivalent number of hours per physician at $240 per hour. In the event a physician requires extra time, and that time is built into the budget, the consultant delivering the service gets the fee.
  5. Administrative Time. (Interpreting Data and Preparing Reports, etc.) Audrea will bill the pre-determined amount of time to the project at an administrative hourly rate, $150/hour.
  6. Expert Time. Audrea will bill the pre-determined amount of time to the project at her usual billable time, $240/hour.
  7. Expenses. Out of pocket expenses like printing, copying, will come out of the gross revenue of the project.
  8. Billing. The project will be delivered under the Endsley & Associates company. Audrea will invoice Technove Medical, and CareerLab will invoice Endsley & Associates.
  9. Payment. Endsley & Associates will pay CareerLab invoiced amounts within 10 days of collecting from Technove Medical.
  10. Residuals. At the end of the project, any unallocated revenue will be divided equally, 50%/50%.

_______________________
Bill Frank

_______________________
Audrea Endsley

_______________________
Date

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William S. Frank, M.A., President/CEO
25 Reasons I love consulting.
by William S. Frank
  1. Brand. You are your own brand, and you can define it any way you want. For many years, I provided outplacement to the ex-employees of Schlumberger, the world's largest oilfield service corporation. When departing employees left the company, they didn't request outplacement in their severance package. They said, "I want Bill Frank."
  2. Demand. The world will always be full of terrible problems that need solving.
  3. White Hat. I can be a helper and get paid for it.
  4. Pay. I can be paid to do things I'd gladly do for nothing.
  5. Variety. Every day is different.
  6. Happiness. At this stage of my career, I only work for people I respect and care about. If a client micromanages me or is otherwise no fun, I complete the assignment and replace them.
  7. Talent. I'm using 110% of my talents and stretching myself to the max.
  8. Change. I can change my focus any day I want. If you're a McDonald's franchisee, you don't say, "Hey, I've got this great idea for a meatball sandwich—let's try it out today." In consulting you can adjust your focus hour-by-hour, as long as your clients still understand and appreciate what you do.
  9. Income. No one else would pay me as much as I pay myself.
  10. FUN. I can't think of anything I'd rather be doing.
  11. Retirement. I can write and consult as long as I am physically and mentally capable. Peter Drucker worked into his 90s, and when asked which book was his best, he said: "My next one."
  12. Job Security. Although clients come and go, no one can come into my office and say, "Pack up your stuff . . . You don't work here anymore." In 29 years, I've only had one employer: ME.
  13. Travel. I don't have to travel unless I decide to. I travel if it's both FUN and profitable—or at least FUN.
  14. Commute. I live five minutes from my office, a corner office in an upscale six-story tower. In winter, I leave a heated garage at home and drive to an underground heated garage at work. There's seldom time to hear even one song on the radio.
  15. Vacation. Consulting is more fun than vacation (except on Wailea Beach in Maui).
  16. Friends. I have developed hundreds of close acquaintances and several lifetime friends.
  17. Time. I can work as much or as little as I like: four-hour days or 18-hour days. (Of course, my income will reflect that.)
  18. Employees. I can work with employees, subcontractors, partners, or alone—I've done it all.
  19. Passive Income. I've developed several products that provide "mailbox money." I earn while I'm sleeping.
  20. Ethics. I've never had to violate my values or personal code of ethics. I've never had to lie, purposely deceive or harm others, or promise things I can't deliver. I go to bed with a clear conscience. That doesn't mean there's never any conflict. But the conflict is conducted according to generally accepted business practices.
  21. Virtual. My career is fairly portable. With the Internet, e-mail, cell phone, and FedEx, I can work nationally, even internationally from my office—or anywhere in the world.
  22. Purpose. I make a difference in peoples' lives every day. I see it in their faces, hear it in their voices, and read it in their thank-yous.
  23. Experience. Every painful or joyful life experience makes me a better consultant. So does every person I meet or book I read. Grey hair can be good in consulting.
  24. Structure. I have to work very hard, and the clients expect superb results—but I get to structure my days, weeks, months, and years.
  25. Boss. Most of the time, I love my boss.
As I was posting these letters online, I realized I want to communicate my love for consulting. It's just a great business. The single letters, taken together, may create a picture of enjoyment, but in a burst of creativity I listed some of the reasons consulting is such a good fit for me—and perhaps for you, too. They are not prioritized; this is just how they came out.