Hi Reader, let me share a story about how the right positioning strategy helped one of my clients land a $750,000 performance-based contract in under two weeks.

This data consultant had all the technical expertise you'd expect – deep specialization, real results, years of experience. But here's what he was missing: the positioning and confidence to charge what his expertise was actually worth to enterprise clients.

That's where I came in.

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We didn't just tweak his messaging or optimize his LinkedIn profile. We fundamentally repositioned him as THE go-to expert for enterprise data problems that others couldn't solve. More importantly, we gave him a framework that allowed him to propose something most consultants would never dare:

"Pay me based on results. If I can't solve your data problem and save you money, you don't owe me anything. If I succeed, I earn a percentage of what you save."

That's the power of strategic positioning combined with the right pricing approach. And it opened the door to a $750,000 performance-based contract that transformed both his business and his client's bottom line.

I know what you're thinking – that sounds terrifying, right? Here's why it's actually much safer than traditional pricing when you understand how it really works.

Performance-Based Pricing Isn't the All-or-Nothing Gamble Most People Think It Is

I see this misconception with almost every technical founder I work with. They think performance contracts mean either you win big or you lose everything. That's not how smart consultants structure these deals at all.

What performance-based pricing actually represents: shared ownership of outcomes. You're not selling time or deliverables anymore – you're betting on measurable results alongside your client. They pay less upfront but share meaningful upside when you hit your targets.

The magic happens when you structure them correctly, which is exactly what I helped my client understand.

The Simple 3-Tier Structure That Eliminates Risk for Both Parties

Here's the proven framework I've seen work across dozens of high-value consulting deals:

Tier 1: Base Fee (60-70%)​
Covers your costs and baseline value. This isn't charity – you're still getting paid for your expertise and proven methodology.

Tier 2: Performance Bonus (20-30%)​
Tied to specific, measurable outcomes you can directly influence and control.

Tier 3: Upside Share (10%)​
Percentage of growth or savings you generate beyond baseline expectations.

Why this structure works so well:

• For clients: Guaranteed value at the base level with explosive upside potential
• For you: Cover costs while positioning for exponential returns based on real impact

It's not complicated once you understand the framework – it's just different from how most people think about pricing.

How a $4M Problem Became a $750K Success Story

Let me walk you through exactly how this played out, because I see technical founders struggle with this transition from selling time to selling outcomes.

The Challenge: The enterprise client had operational inefficiencies costing them almost $4 million annually. Instead of pitching a traditional $50K consulting project, here's the structure we developed:

• Complete diagnostic work to demonstrate immediate value
• Take 20% of documented savings for the first year
• Zero payment unless the problem was solved completely

The Results:

• Fixed the problem and saved them $3.75M annually
• Earned $750K (20% of verified savings)
• Client achieved $3M net win with zero upfront risk
• Project completed in under two weeks

This isn't about being some kind of pricing genius. It's about having confidence in proven methods and structuring deals that align everyone's incentives. That's what strategic positioning makes possible.

When Performance-Based Pricing Makes Sense (And When to Avoid It Entirely)

I don't recommend this approach for every situation. Here are the three critical signs it's right for your business:

✅ You Have Proven, Repeatable Frameworks​
You need systems that consistently drive results – methodologies you've tested and refined across multiple clients. In our example, the consultant had a repeatable data optimization process with documented success.

Red Flag: You're still figuring out your methodology or this represents experimental work. Don't bet on unproven approaches.

✅ The Client Has Clear, Measurable Goals​
Your client must be willing to tie compensation to specific, quantifiable outcomes. Cost savings, revenue increases, efficiency gains – things you can measure objectively without ambiguity.

Red Flag: Vague goals like "brand awareness" or "market positioning" that can't be clearly measured. These create disputes later.

✅ You Control Enough Variables for Success​
You need direct influence over the outcome, not dependence on external factors beyond your control.

Red Flag: Success depends heavily on client team execution, market conditions, or factors you can't directly impact.

The key insight here? Performance-based pricing becomes possible when you have the right positioning and proven frameworks to back it up. Most technical founders have the expertise – they just need the business structure to unlock its full value.

When you position yourself correctly and structure deals that align incentives, everyone wins. And that's when consulting becomes truly scalable.

This is just the beginning of what's possible when you understand how to structure these deals correctly.

I know you're probably thinking "this sounds great, but how do I actually implement this without getting burned?" That's exactly what I cover in the full blog post.

Inside, you'll get the complete tactical breakdown including:

✅ The 4-step protection framework that prevents performance-based disasters (most consultants skip step 2 and pay for it later)

✅ Your readiness assessment checklist - know exactly whether you should attempt this or wait until you have the right foundation

✅ The complete 4-phase implementation roadmap - from building your foundation to structuring your first deal

✅ Additional performance-based pricing examples across sales, marketing, and operations consulting

✅ The psychology behind why this works - understand what your clients are really thinking when you propose this structure

The story is just the start. The real value is in understanding how to build your own $750K breakthrough.

​Read the complete tactical guide here →​

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What’s your next move, Reader?

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Ready to engineer your own growth breakthrough? I am taking on 1 new client for next month - drop your details in this form and let’s look to see if we’re a fit.

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All the best,
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Lillian Pierson, P.E.

Founder & Fractional CMO @ Data-Mania

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