How
To Sell A Higher Fee
Okay, here's the deal. The client has $4,000 and the speaker
who is right for them is at $10,000 plus first class travel.
What do you do, try to switch them to a less than perfect
selection? If you know that a particular speaker is right
for this group, then sell the client on making that choice.
How they pay for it is often up for discussion. Here are
some creative options.
1. Look for other ways to pay the fee.
a. Perhaps a vendor to the client would be willing to
sponsor all or part of the fee. Maybe a second sponsor
will pick up the travel expenses. Offer to help the client
present the speaker for sponsorship. Send an extra press
kit or video, or set up a teleconference with the speaker.
b. Get the money from the training department's budget
instead of from the convention budget. Expand the client's
thinking on how to pay it.
c. Allow the client to pay part of the fee from this year's
budget and the balance of it from next year's budget.
Take your deposit now but delay the additional payment
as long as practical.
d. Let the client pay installments on the excess amount
of fee above their budgeted amount. In the above example,
accept the $4,000 now and stretch out the rest. (Clear
this with the speaker first.)
e. If the speaker really wants this booking, see if he
or she will pay their own travel in return for some special
consideration from your bureau.
2. Expand the booking contract.
a. Book multiple engagements for this speaker with this
client and offer a quantity discount that your speaker
agrees to.
b. Book even more of their speakers for this year's conventions
through your bureau and offer part of the extra commissions
earned by the bureau as a discount to the client. ( clear
this one with your boss first.)
c. Save the client extra preparation and travel/lodging
expense of multiple speakers by increasing the number
of presentations for this speaker. Instead of hiring three
speakers, have one speaker do a keynote, a breakout and
a special private session for top performers or executives.
The extra services will cost less than a full fee and
the travel cost doesn't increase at all. Help the client
to see the travel money they would've spent on others
can be applied to this speaker without any extra outlays.
d. Expand the scope of this speech. Offer to let the client
video tape and broadcast the speech for a small extra
fee. Let them sell the tapes to their attendees or the
people who couldn't attend. Do a satellite meeting or
distance learning video broadcast to reach more people
with this one speech.
3. Generate more profit
sources.
a. Sell the client a book or tape album for each attendee.
The speaker will often allow part of the product profits
to be used to reduce the fee outlay. This also makes the
whole event even more special for the attendees. Make
sure there is an autograph session after the speech.
b. Offer to have the speaker do a special pre or post
speech event for a separate registration. This produces
extra revenues at no cost to the client. The speaker may
be willing to do a little extra work for only a little
extra fee. And the travel is already paid!
c. Schedule a special pre or post convention telephone
or Internet conference with the speaker. Let the attendees
and those who can't attend talk directly with the speaker
and get their questions addressed. Send a book or tape
or handout to those who log on. Give them the chance to
purchase some of the speaker's materials at a special
discounted price.
d. Have the speaker do an extra consulting event for the
client at a flexible date that fits their schedule. Imagine
the impact the speaker can have, don't just focus on the
performance at the convention.
e. Let the speaker do something extra to promote their
pet cause or new project. Some speakers have a charitable
foundation that they will accept smaller fees to provide
funding to. Others may have a new book to promote or company
to prospect for. Get input from the speaker as to things
that they'd like to do.
f. And the old standby, let them sell products. If the
client will make a special display of the speaker's materials
and allow for a commercial from the platform, the speaker
may reduce their fee or offer the client a percentage
of the sales. This offsets the fee paid by the client,
though it involves a bit of uncertainty. Nobody knows
how much product will sell onsite. If there are concerns
about the uncertainty, then set a no-less-than or not-to-exceed
amount.
When you know you have the right speaker for the client,
don't let their budget stand in the way. It's just a budget,
not their entire bank account. Remember, every dollar
of extra fee your speaker earns is more commission for
your bureau. Win-win-win = Client-Bureau-Speaker.
A
Fee Negotiations Formula
When the client requests a reduced fee for multiple dates
or product purchases in addition to the speech . . . Confirm
the discount on the last part of the transaction.
For example: If the client offers to book a $10,000 speaker
three times in return for a reduction of the fee to $8,000
per engagement, (and the speaker agrees), say yes. Then
tell the client that the full discount will apply on the
third or final engagement.
Here's the math:
3 speeches @ $8,000= $24,000.
Here's the invoicing strategy:
Speech #1 $10,000, Speech #2 $10,000, Speech #3 $4,000
= Total $24,000 . The client gets the price he wants and
you and the speaker are assured that the discount is earned
before given. In this way, a cancellation of Speech #3
doesn't take advantage of your original justification
for offering a quantity discount.
If the discount fee is due to quantity purchases of products,
bill for the speech at regular fee and show the entire
discount on the product pricing.
Note: If everything is paid in advance, none of the above
matters.
What
If Someone Wants A Freebie Or Reduced Fee?
Though rare, there are occasions where a free speech or
reduced fees are desirable to both the bureau and the
speaker. The trouble is; when clients pay little or nothing
for a speaker, they place little or no value on what they
have received. The speaker is often treated as an unimportant
player in the overall meeting. Conversely, when they pay
a large fee, they treat the speaker as if he or she were
royalty.
When reducing the fee - increase the commitment. Assure
that a contract is signed specifying details and confirming
audio visuals, accommodations, travel, cancellation agreement,
etc. At ‘Maximum Success’ we require that
two documents be signed specifying details and confirming
that the client is aware that this is a professional engagement,
not just a favor from a buddy.
What
If The Client Wants An Extra Speech Without Additional
Fees?
A speech is not just words. If it were, an article or
a phone call would do the job and we could all stay at
home. A speech is a targeted performance. It is the delivery
of not only information but also of impact on the listeners.
Good information delivered poorly is wasted. Each performance
takes special preparation, enormous creative energy and
added effort from the speaker.
Most speakers have a keynote fee, half day fee, and full
day fee. The keynote fee typically includes all the costs
of research, preparation, travel time, etc. A second speech
to the same client audience requires less preparation,
no extra travel time and minimal added research. Half
day fees reflect that. They are often dramatically less
than two speech fees. Full day fees are similar, set with
the initial hour carrying the main weight. Ask any person
-- if you work several hours for your employer how many
of those hours do you expect to be paid for? They'll say
"All of them!" and rightly so.
So, tell your clients that an extra speech requires an
extra fee. However, ask them if they have a suggestion
of some other form of compensation to pay for the additional
speech. Travel upgrades, product purchases, video taping
services, and printing services are all useful forms of
compensation. Then figure an appropriate way for the bureau
to receive additional compensation equivalent to their
portion of the speaker's compensation. Be flexible, all
of these are on top of an already booked speech.
Why
Should Clients Pay First Class Airfare For A Speaker When
Their Own Company Executives Fly Coach?
"We can't pay our speakers first class when our president
flies coach." Ever heard that one? It begs the question,
"Do you pay your president a speaking fee and tell
him what to cover in his talk?" ;-) But, sarcasm
aside, the concern is valid. How do you justify first
class travel? And when are there exceptions?
In my case, first class travel is used because of the
time and grief it saves. I get to board early and get
back to my work without interruption. If the flight is
delayed or canceled I get prime consideration for alternate
travel. And there is never any hassle over changing the
schedule at the last minute to accommodate another booking.
For the client this means: the speaker arrives rested
instead of frazzled. Delays and oversold situations don't
mess up the arrival as often. The speaker can use the
time to review the client's materials again instead of
wasting time waiting for the meal to be cleared or dealing
with cramped seating and intrusive passengers. Besides,
as often as not, the schedule is prorated between clients
and the airfare charged to each one ends up being less
than economy coach would have been.
It is often the CONCEPT of first class travel that annoys
the client as much as the reality of it. Those who don't
fly constantly are often of the belief that first class
is about luxury and free drinks. That is FAR from the
reality. Domestic first class is not luxury. Besides most
speakers wouldn't drink on the way to an engagement anyway.
International first class is another subject. That IS
luxury! And it is priced accordingly. I often agree to
fly Business Class on international flights, as long as
I don't have to sleep on board. Again, the pre-boarding
and private airport lounge are great aids to the business
traveler.
But what if it is just the money that bothers the client?
I agree, airfares, even for coach, can be outrageous.
It is not uncommon to see fares over $2,000. (To which
I say, shame on the airlines for their pricing policies.)
What do you do as a bureau in these cases? Well first,
determine whether the travel is being paid from the same
account as the fees. If so, then treat the fee and travel
as one. Agree on a not-to-exceed amount with the client
and then deduct the actual final travel expense from the
commissionable portion of the contract with the speaker.
If not from the same account, then confirm the fee and
treat the travel separately. I have sometimes agreed to
use frequent flyer upgrades and charged the client for
them at a rate below standard first class. (They do have
a real value.) We have also agreed to provide books or
tapes for the audience or videos for the training library
in exchange for the extra travel cost. In these cases
we use retail value against retail value for the negotiation.
On occasion I have offered to hold a special private chat
at the meeting with some of the company leaders for no
extra fee. This often leads to more business with the
client.
So why don't I just cave in and fly coach? Because I travel
every day of my career. If I only flew occasionally it
wouldn't be such a concern, but this is my commute! It
takes most people an hour or less to get to work. I usually
have to travel for five hours or more one way. After a
while one's tolerance for the travel stress is worn thin.
The plane is as much my office and I choose not to work
in a cramped and unpleasant environment any more than
is necessary. Let the client compare the decor and furnishings
of their president's office with mine on the plane and
you will begin to see the contrast.
In the end, there is no easy answer. The task is managing
the client's point of view toward the travel. Help them
see it as a part of the overall package, not a special
luxury they are providing. Show them how what really counts
is to compare the total cost of acquiring the speaker
to the impact on the thinking and behavior of the attendees.
Clients will often balk at a $5,000 fee plus first class
and then turn right around and book someone for $10,000
fee plus coach for a total much higher than the other.
Keep them focused on the real issue: What does it cost
to provide the speaker at their special event, period?
Not what does the travel cost or the fee cost, but what
is the total investment they’ll need to pay out
to get the speaker to perform.
Why
Is It So Important For Audience Members To Get A Book?
In my years of speaking full-time, I've accumulated hundreds
of hats, T-shirts, vinyl folders, carry bags, pens, and
luggage tags. Like most speakers, I give these to friends,
coworkers and relatives as often as not. Meeting planners
spend thousands of dollars at each meeting on these specialty
items in hopes of :
1. Pleasing the recipients.
2. Driving home their message or theme ("team work",
"quality", etc.)
3. Building loyalty and gratitude! The trouble is ...
it rarely works.
Of the couple thousand conventions I've attended, I've
received a book or tape from the speaker/author less than
20 occasions. (That's 1% of the time.) Yet in each case
I have read and kept the book or listened to the tape.
In other words, I continued to learn from the author/speaker
on my own time, long after the meeting was over. So which
message reached me better and influenced my performance
more: the giveaway items or the learning materials?
If our clients are paying thousands dollars to bring in
a speaker, let's make sure the message hits home. Encourage
all clients to acquire a book or CD for every attendee,
every time!
The benefits of books, instead of hats or T-shirts, etc.
are many:
1. Audiences love to get autographed books (and speakers
love to sign them!).
2. The meeting chair is a hero for getting them all a
book.
3. Books build celebrity value for your speakers and audiences
listen better.
4. The learning continues (for about the same price as
the giveaways).
5. Quantity discounts save the client money.
6. The speech goes better from the start with the announcement
of free books.
7. Builds enthusiasm and excitement in the audience.
8 . People keep the book for years and often share them
with their family.
9 . Fewer notes need be taken.
10 . (This one is for you) The bureau earns a commission
on the product profits.
The client can easily do a special sticker for the book,
"Courtesy of XYZ Company", which the author
can sign in advance for each participant.
Tell all your clients about this. Let's make it a standard
part of every booking!
Just ask the client, "What are you giving attendees
as a reminder of this meeting? How about autographed books
for all the attendees?"
What
Should Commissions Be On Product Sales?
First question is: Who sold it? If the speaker or their
staff sold the product to the client then they deserve
the commission. If the bureau sold the product, the commission
goes to the bureau. But it is not quite that simple, is
it?
Here are the variables as I see them -
1. Bureau pre-sells product (before speech).
2. Client allows speaker to offer products at B.O.R. for
sale at event.
3. Bureau does nothing to sell the product, yet speaker
or staff of speaker sells product, before or after event
with client's permission.
4. Speaker or bureau sells the product as part of the
fee, a package deal.
5. Client calls bureau after speech and orders products.
6. Bureau and client encourage speaker to reduce fee in
hopes of product sales, yet no sales are made due to client's
lack of cooperation.
How do commissions apply on each instance?
First, let's agree that efforts which result in sales
are worthy of being compensated. If you sell something
a commission should be paid to you.
Second, let's realize that only the net revenue is commissionable.
If the product costs $5.00 to produce and it sells for
$15.00, then only $10.00 is commissionable. The same is
true for speaking fees, the travel expense is not commissionable
because it merely reimburses a cost. The fee itself is
what earns the commission.
1. Bureau pre-sells product (before speech). When the
bureau sells the product they should get a commission
on the net revenue they generated. So if the fee was $10,000
and 20% commission was earned, the same formula would
apply to net product revenue. On a product sale of $1,300,
if production costs were $300, the net of $1,000 is commissionable,.
At 20%, that generates $200.
2. Bureau encourages client to allow speaker to offer
products for sale (at speech), then speaker makes the
sales. When the bureau creates a situation that makes
it easier for the speaker to sell products, a finder's
fee is appropriate. This could be smaller like 5% or 10%
depending on the situation.
3.Bureau does nothing at all to sell the product, yet
speaker or staff of speaker sells product (before or after
speech) or at speech (with clients permission). If the
bureau does nothing related to product sales, no commission
has been earned.
4. Speaker / bureau sells the product as part of the fee,
a package deal. In this case the cost of the products
(and shipping costs) are deducted from the total before
calculating commissions, just as it should be when travel's
included.
5. Client calls bureau after speech and orders products.
When the bureau consummates the sale, the bureau gets
a commission.
6. Bureau and client encourage speaker to reduce fee in
hopes of product sales, yet no sales are made due to client's
lack of cooperation. This one is sticky. In all fairness
there should be an extra fee paid when the client drops
the ball ... but, in reality, usually the speaker eats
the loss.
P.S. If the fee was reduced and product sales encouraged,
then any product revenue should go only to the speaker.
These are my opinions. Your?
Talk about these issues and watch commissions rise.
* Item 3 maybe controversial. Check with bureau policies
to determine this.
How
To Use A Speaker's Website Without Losing Your Client
When you refer your client to a speaker's website there
is sometimes a possibility that they will deal directly
with the speaker and forget who referred them. True or
false? Sadly, this is often true.
On the other hand, if you are dealing with an established
professional speaker then the risk is minimal. After all,
the speaker realizes that their future with your bureau
is on the line. Responsible speakers always determine
how the client came to them and refer the contract back
to the originating bureau. But part time speakers, some
celebrities and many nonprofessionals often don't understand
this rule. Here are some strategies for working on the
web and keeping the clients you attract.
1. Be clear as to who you are working with; a true professional,
a celebrity, a subject expert who occasionally speaks,
or even an uninformed staffer of one of the above.
2. Don't treat everyone the same. That is about as fair
as issuing the same size of clothing to all comers regardless
of height or weight.
3. Visit the speaker's website yourself before referring
others there. See how good of a sales tool it is. If it
doesn't impress you, it won't impress the client, so don't
use it at all.
4. If the site impresses you, instruct your client as
to how to explore it (keep it short and simple) and send
them an email with two hotlinks, one to the speaker and
one back to you.
5. Copy the speaker on the email that refers your client
to the site. Show your client that you are copying the
speaker. That let's everyone know that you originated
the lead. If you wish to conceal the client's email address
for the time being, just send a copy to the speaker without
it.
6. Encourage all your speakers to create a Bureau-Friendly
Site, one with no contacting information other than "contact
the speakers bureau who referred you to me." Then
link those sites to your own for easy browsing of speaker
sites by the client. Our Bureau-Friendly Site is being
revised. Contact us at our website at: JohnSantangelo.com/contact
for the latest information.
7. When you are dealing with a speaker like me (John James
Santangelo) share as much information about the client
and event as you can. We will NOT abuse the information.
Often I can help you confirm the sale by sharing a bit
of inside information about their industry. I will not
try to sell you or the client on a booking for which I
am not well suited.
8. Give your speakers feedback on their site. Tell them
what is clear and what is not. Share ideas for easier
site navigation or special features. Keep the communication
open. After all, the speaker is creating sales tools for
you to secure business with.
9. Double check the speaker's site for fee changes, title
changes and contacting information updates, every time
you visit the site. Then update your own database listings.
This is the only way to stay up to date, considering how
many speakers you deal with each year.
10. When visiting MY regular website (www.JohnSantangelo.com)
for your own information, go to the "speakers bureau"
section and there you will find: client lists, fee schedules,
selling points, tax id #, travel details, commissions
on products, fax numbers, and even sample selling phrases
relevant to me. No other speaker I know of has so much
material for bureaus.
What
Should You Expect From A Professional Speaker, Before,
During And After A Speech? Permission granted by Jim Cathcart
- CSP
I decided to tell my clients what they can expect from
me, on all levels. Click here to read it...
"Here
is What I Will Do When I Speak for You"
Clients love it! (see bottom of page)
How do you stay up-to-date on your speakers when
there are so many of them and quite a few are constantly
changing what they do?
The easy answer is "you don't." But a better
answer would be "you build it into your daily work
system." Let me elaborate. In NSA there are now about
4,000 members, 60% of whom are professional speakers.
Outside of NSA there are thousands of others who regularly
speak for pay. It would be unreasonable to expect that
even the best agent could stay up to date on most of them.
So what usually happens is: the agent simply uses the
one-sheet bio in their file as the total of their research
on each speaker. Errors are assured by this approach.
On other occasions the agent builds a database or contact
record for each of their favorite speakers and uses that
information as their reference. This is a more reliable
approach, yet still incomplete and often out of date.
I suppose you could limit the number of speakers you represent
so that you knew each of them thoroughly. I'd call this
the "boutique" approach to bureau-ing. This
gives you accuracy and increases the chances of confirming
a sale but you'd miss out on all the others who you might
have also booked.
I believe that both the speaker and the agent bear some
responsibility for keeping the bureau up-to-date. We can't
expect you to fully read all our mail and refresh our
files constantly. You get far too much mail for that.
And you would be distracted from your booking activities
if all your speakers were calling or dropping by several
times a year with updates.
So we speakers need to update our material constantly:
on our websites first, thereby allowing all who access
it to get the latest titles, topics, fees, etc. We also
need to send you clearly identified copies of those changes
immediately for your files. Then the next time we speak
with you we should confirm that you got the information
and put it into your records. But we shouldn't expect
you to be aware of those changes unless we've chatted
lately. That's how I see it, how about you?
As the agent, you need to do more than just skim the record
on the speakers you regularly represent. Here's a suggestion:
First, read your computer listing on the speaker. Go back
a bit to review the record. Second, skim the file and
see if a new fee, video, book or topic has been added
lately. Third, verify the expiration dates or copyright
dates on fees, topics, etc. If no contradictions appear
with this two minute review, then go ahead as usual.
If you find conflicting fees or topics, check out the
speaker's website. All of this can be done in less than
ten minutes. Naturally you can always call the speaker,
but I'm trying to show you the shortest route with the
least time and expense.
In summary: The speaker is obliged to keep up-to-date
information easily accessible to any who seek it. The
bureau is obliged to check beyond the first thing in their
file when presenting information on a speaker. And both
speaker and agent are obliged to be reasonable adults
about this whole issue so that confusion is temporary
and conflicts are non existent.
It will be a pleasure working with you! Blessings, John
"Here
is What I Will Do When I Speak for You"
Page
In
Preparation, I Will
• Be available to discuss plans with you for
my speech.
• Know what your organization does and why it
does it.
• Know why I am there and have a specific plan
to accomplish our goals.
• Know the theme of your meeting and relate
my presentation to it.
• Know why your people would want to hear what
I have to say on this topic.
• Coordinate with other speakers or the bureau
to assure your goals are met.
• Notify you in advance of my travel itinerary.
On-Site,
I Will
• Notify you when I arrive, contact you immediately
if any serious delays occur.
• Be accessible to you from the time I arrive
until I leave.
• TELL YOU THE TRUTH 100% OF THE TIME
• Retire early the night before my speech.
• Be reasonable and considerate in room charges
and incidental expenses.
• Be in the meeting room for a sound check well
before the time of my speech.
• Coordinate with set-up crew and other presenters
so everything runs smoothly.
• Stay out of the way until it is my turn to
speak.
• Study your audience and the other speakers
to align my message with them.
• Dress appropriately, more formal or business-like
than your audience.
• Provide an easy, brief introduction and be
available to coach my introducer.
• Make suggestions to crew to enhance audience
impact; lights, sound or staging.
• Be in the room, seated and visible to you
well before my introduction begins.
During
My Presentation, I Will
• Walk on stage cheerfully and open my speech
with energy and purpose.
• Never use off-color language or material.
• Stick to my time frame and adjust if needed.
• Interact constantly with the audience and
involve them through questions, a show of hands, eye
contact and exercises as appropriate.
• Present well-researched, profound information.
• Use stories and humor liberally.
• Use appropriate slides, audio/video clips
to enhance the look, feel of my speech.
• Respond maturely and calmly to any problems
or emergencies.
• Be humble and respectful to everyone; audience
members, staff and crew.
• Allow for questions and comments from the
audience during my presentation.
• Summarize my points and give numerous ways
to remember my key points.
• Relate my points to your organization and
people.
• Never abuse my assignment by turning my speech
into a sales pitch.
• Only offer my books and recordings if approved
or requested in advance.
After
My Presentation, I Will
• Stay around after my speech briefly to answer
questions or hear comments.
• Check out and depart with minimal effort to
you.
• Itemize my expenses and bill you promptly
after the speech.
• Provide receipts as needed.
• Promptly fill any orders for my products.
• Sign up audience members for my email newsletter
as a follow up, if desired.
• Suggest strategies to continue the impact
of my message during follow-up.
• Never disclose any sensitive information about
your organization.
• Accept phone calls or emails from individual
audience members or executives.
In
Summary
• I will deliver an exceptionally good presentation
in a highly professional manner.
This
copyright information was used with permission by
Jim Cathcart
