Negoiating Fees and Contracts

Posted on August 4th, 2007.

The phone rang the other night at 10pm and it was one of our new speakers calling in a panic. The message was, I need to talk to you right away, I got a call to speak out of state and I don’t know how much to ask for a speaking fee-help!

When I responded, I asked her a few questions ie: what’s the budget and who is the group? She answered the later but didn’t know what the budget was nor did she know how to negoiate a fee plus put together a contract.

I sent her a sample contract (I included one for you below) along with a pre-program questionairre and offered suggestions on how to speak to the meeting planner.

Yesterday, I was teaching marketing skills at the Speakers’ Bootcamp and shared the same information with our “booties”. BTW: Tomorrow is the 5th and last day for the Bootcamp and we’ll be offering it again in March ‘08.

Here I am talking about negotiating fees

Here are a few tips on how to negotiate fees

- Have a small form made up and ready when potential customers call. List: Who, What, Where, When, Why and How. When they ask you to speak for their group, smile and say “Tell me more.” After you get all the rest of the information ask this question: “What is your budget for this program?”

- When clients say they need to negotiate and reduce your fee, do not give them a bargain price for no viable reason. Find a way to exchange value for value. When you do this, customer will have respect for you and the quality of your services you offer. If you do not value your work, no one else will.

Reasons to Consider a Lower Fee

- Showcase Opportunities to Prospective Buyers: If working for this client has marketing opportunities for other speaking, consulting, or product sale. Audiences of speakers bureau representatives, meeting planners, and association or corporate executives fall into this group.

- Barter part or all of your fee: If the client has a service or product that is of real value to you, barter part or all of your fee in exchange. Speakers have traded speeches and seminars for new automobiles, long-distance dialing credits, boats and many other valuable things!

- Exchange part of your fee for an ad in their company or association publication: If the audience might prove a good market for your books, cassettes, products, and other services. An ad is a concrete value which has a price which you can negotiate.

- Exchange part of your fee for an ad their event program brochure. These ads can bring you cash sales. An ad is a concrete value which has a price which you can negotiate.

Talking to the “booties” about marketing

Sample Invoice for Payment & Agreement to Engage

Description or title of the event:

Date(s) of engagement:

Time Frame for presentation:

Location:

Correspondence, billing etc shall be directed through:

The client, _________ agrees to pay _________ (speaker)
the following fee of $______. In order to secure the engagement date, a
non-refundable 50% deposit in the amount of $2,000, or full fee less 10%
discount in the amount of $3,600 is due within ten (10) working days upon
the receipt of this agreement. The balance of $2,000, if applicable is due
by ______

The engagement is confirmed only when payment and signed
agreement is received by (your name) _________________________.

Payable
to_________________________Address________________________
Phone ______________ Tax ID#________________________________ .

Travel expenses from ______________ to __________, and two nights hotel
accommodations, to be pre-arranged and paid for by the client Other out of
pocket expenses such as meals, ground transportation, etc to be reimbursed
by client. Client consents to having any products (books and tapes) (name) ________ displayed and available for purchase at, or just outside the room
where his presentation is held, All proceeds go to (your name) ______, unless
client wishes to order products wholesale for resale of the event.

Because of the potential loss of income and travel complications for(your name)_______, if the engagement needs to be rescheduled by the client, (your name)_________ must be notified at least 45 days before the event, or a surcharge of 20% will be added to the total fee.

Cancellation within 45 days of the event carries a surcharge of 35%, in
addition to the deposit, plus all expenses incurred by (your name) ______ in
preparation for this event. Al late fee of 10% of the balance applies if
the balance is not paid by the due date.

If (your name) ______ is unable to deliver the work to be performed due t illness, injury, or an act of God, the client can either reschedule the engagement,
or receive a full refund of any fees paid.

Reservations for two nights accommodations will be made at _________________

Transportation from the airport provided by _________________________

Transportation from the hotel to the meeting site provided by_______________

If questions arise, Mr. ______________needs to contact _________________
Phone number: ___________________ E-Mail: _________________________