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Non-traditional
remuneration models
A confession from the trenches
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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…
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What forms?
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co-shareholder:In exchange of difference in commercial hourly
rates/cost-rate a shareholdership is acquired
example: The Voice
What forms?
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What forms?
co-makership:negotiated definition of performance-based
component vs regular rates (bonus/malus)
example: ING forms
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What forms?
performance/volume-based:rather conventional and not really non-traditional
remuneration-model, relevant nontheless
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What restrictions?
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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.
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Clients reaction?
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Client‟s reaction
Depends completely on culture:
• Corporates: “Interesting. But...”;
• Start-ups: “YES, PLEASE!!”;
• Entrepreneurial: “OK, let‟s talk”.
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What traps?
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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).
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Thank you very much
for your attention
Wim Andréa
director strategy & creative