Is Contingecy Marketing Dead?

How familiar is everyone with the term contingency marketing?

If you’re not, I’m sure the concept is more familiar than you think.  It’s a lot like being paid a commission.  For example, as a consultant, if I can make you $1 in profit that you wouldn’t have otherwise had, would you give me 25 cents?

Pretty simple.  The idea is to create an environment where the small business owner doesn’t have to take on any additional risk, and if the consultant can’t deliver on his promises, the small business owner doesn’t pay a cent.  If every advertising agency was held accountable for results, how many would still be in business?

The concept is simple, but do we realize how powerful it is?

So my question for everyone is:

Is Contingency Marketing Dead?

The backdrop and foundation is:  There are literally MILLIONS of small businesses that desperately need help, and there are MILLIONS of so-called ‘experts’ at helping small businesses grow, so why don’t we see more guarantees?

I’ve even personally followed up with a number of businesses online that claim to guaranty their results-only work, only to learn further along in their sales cycle that they do actually charge fees up front.

What are consultants and professional service organizations afraid of?  Are consultants worried about not being able to deliver on their promises?  Are consultants unable to track their results?  Are consultants afraid that their clients will drop off the face of the earth when it’s time to pay?

How do all the small business owners out there view contingency agreements?  Have they run their course?  If a consultant promises you results with no up-front fees, do you suspect it’s too good to be true?  Is there an impression that the quality of the services you receive will be proportionate to the fee you pay up front?

I’d love to hear your thoughts on the subject.  Is contingency marketing dead?  Why aren’t more small business consultants confident enough to work on a results-only basis?

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~ by 21stCenturyMarketingSystems on February 24, 2010.

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