FAQ
Frequently Asked Questions:
I finally could see the pathway forward.
...a relevant, reasonable, and impressive plan of action.
“Ben takes the time to learn his client well so that he can establish a genuine connection which excellently serves the process that follows. Throughout the conversation I felt open and at ease.
Ben is very knowledgeable and extremely keen to learn about the areas in which he’s not already versed. His questions are intentional and purposeful and help him build the greater picture to draw from as he creates a solution using a backwards by design process.
I had the pieces of my life there, established. I had made great changes, taken training, and done a lot of personal discovery to figure out what kind of work I am meant to do. The past year has felt like a struggle to try and put those pieces together in a cohesive, meaningful way and create a business model and platform that is perpetual and of great quality.
After my conversation with Ben, I felt that I finally could see the pathway forward.
He was able to consider the pieces I had in front of me, including my dreams and desires, and suggest a relevant, reasonable, and impressive plan of action that will help me step out of the life I’ve been struggling in, and into the one I’ve been imagining.
He communicated the solution and now I can put into action a plan that is sustainable and directed towards my goals.
Ben is deliberate in his every step. His presence is professional while holding the compassion he has for his clients and the dreams that are close to their hearts. Ben truly understands the simplicity in a solution that can stem from a complex situation. He can comprehensibly see the way through any problem and has an acute awareness of the steps required to help catapult his clients from a place of feeling stuck and stagnant to one of clarity and success.
If you’re looking for a straightforward, no bull, and brilliant resolution to the problem that’s been keeping you from moving forward, ask Ben.”
- KD
What is the 5% model?
The 5% approach is widely used in service industries such as marketing, e-commerce, or business consulting, where the provider takes a percentage of the client’s top-line revenue, ensuring their interests are aligned with the client’s growth.
Why is it used?
The 5% model is attractive because it balances risk and reward between the service provider and the client. It motivates the provider to deliver high-value work, as their compensation grows with the client’s revenue. For the client, this model ensures they aren’t overpaying upfront but instead share a portion of the value created. This aligns incentives and drives a co-operative approach to scaling.
Why use Gross Monthly Revenue (GMR)?
GMR is the preferred metric in this model because:
Consistency and Transparency: GMR is a top-line figure that’s easier to track and report. Unlike net profits, which fluctuate based on varying costs and accounting practices, GMR remains relatively stable and provides a clear, objective number.
Scalability: As a business grows, its GMR will increase proportionally. The 5% model scales with the client’s growth, making it a fair and adaptable pricing strategy.
Risk Mitigation: By focusing on gross revenue, the provider mitigates the risk of poor profitability or high operating costs within the client’s business. This means the provider gets paid regardless of how efficiently the client manages its expenses, though it’s still incentivized to help the client grow revenue.
Justifying the Cost
Practice and Expertise: A 5% fee on GMR can be justified when the provider brings expert knowledge, strategic partnerships, or technical proficiency that directly impacts the client’s top-line growth. It's particularly justified when the service accelerates revenue or opens up new markets.
Performance Incentives: The provider’s compensation is directly tied to performance, encouraging the provider to work diligently to grow the client’s business. Since their fee is a percentage, they will aim to maximize the revenue-generating opportunities for both themselves and the client.
Risk Mitigation: The risk for the client is lower in this model. Since payment is based on revenue (not fixed costs), clients aren’t obligated to pay high fees in months where revenue might dip. This provides flexibility and reduces financial strain.
Risk Mitigation and Engagement through Incentivized Performance
Engagement Driven by Results: The provider is highly incentivized to increase the client’s revenue because their compensation is tied to GMR. This aligns the provider's goals with the client’s growth trajectory.
Flexible Payment Based on Growth: As the client’s business grows, the payment to the provider naturally increases. This flexible model ensures the client isn’t overpaying during slower growth periods but rewards both parties when performance improves.
Proof through Historical Success: Case studies often illustrate how this approach has led to mutual benefits, particularly in industries where scaling quickly is essential. For example, in high-growth fields like e-commerce or strategic consulting, the 5% model has proven effective by creating shared incentives for both client and service provider.
The 5% model is advantageous because it aligns incentives between the provider and client, uses a transparent and scalable metric (GMR), and mitigates financial risks. It drives engagement through performance-based compensation, making it an attractive pricing strategy for growth-driven services.