Our relationship has to be built on trust, and it can't be if you're always keeping one hand on your wallet, so we thought it would be a good idea to just lay out our revenue models up front and let you decide how you want to pay us.
From the start, we have offered both fee-based and backend compensation models. Some clients like to pay us a fee up front, on contract terms, and own everything, while others prefer that we handle things for free up front and make our money on the backend, deal by deal. It's your call.
Fee-based clients pay us a fee, determined on a client by client basis, to handle their sourcing for them without adding any commission for ourselves and ensuring total transparency to the client.
We discuss a broad scope for the sourcing relationship, and, once we agree, we sign an MOU for one-time payment and a one-month term, during which we work together to determine detailed scope, workflows, processes and viability.
At the end of that month, you may either terminate the relationship or we agree on a monthly fee and contract term to move forward.
While this may seem protracted, it's not fair to you (or us!) to pretend we can build a sourcing program for your organization overnight, but when we spend a month coming to agreement, everyone is invested and on board.
Deal-based clients pay us nothing up front, we begin our work, and we control the sourcing relationships and financials, making an undetermined amount of money on each order placed with us and our sources.
Usually, you contact us to help source things for you, starting with discussions and then moving to the RFQ stage, at which time you provide us everything we need to assess and bid out your piece, pieces or fabricated assemblies.
We get you detailed bids, information about the sources, vet them further as you require, negotiate terms and then decide how to proceed.
Once you issue a PO, and money changes hands, we will make the source known to you and happily arrange for you to get to know them, while continuing to manage your sourcing projects end to end.
You're handling complex business already, you can do the math on this, and we don't like wasting your time (or ours!) patronizing or pretending.
The governing realities here are pretty simple:
1) You don't know if we can do what we say we can do until we do it.
2) Cash flow is king.
However, you're here, you read this far - and thank you for that. We would guess that means you are interested in someone to work with you on sourcing. We can usually do that, and when we can't, we figure it out up front, together with you, and we move forward.
See, we're not interested in making a few thousands dollars out of our work with you, we're interested in making tens of thousands, hundreds of thousands, or millions of dollars off of our work with you, and that won't happen if we can't do what we say.
That's the long way of saying that we'll either make it up front or we'll make it later. How you pay us is entirely up to you, but it does have long-term implications for your business, so it's worth considering.