Excelerator Fee Structure
Results and Reward
The problem with most business development consultancy is that most of the effort and fees are up front. Most consultants start with a smaller fee and increase their effort and workload as revenues increase. As a result business growth is typically slow, incremental and projects are constantly being curtailed and compromised.
Excelerator is different. It invests the substantail effort up front. It Never compromises activity and effort is repaid as and when revenues increase.
The Input Chart below indicates the dollar value of the typical input of a typical Consultant and an Excelerator program over time. Most consultants start with an affordable level of service which may increase slightly over time. With Excelerator a huge effort is made up front when it is most need to get resilts fast.
The Cost/Benefit Chart below indicates how with typical business consultants revenue (the benefit) typically increases slowly over time. With Excelerator the revenue increases much earlier and is greater because the input is much larger and usually better.
The Cost Chart indicates how a typical business consultant fees commence relatively high and may increase slightly over time as revenues increase.
With Excelerator the fees start at a much, much lower level but increase as and when revenues increase.
Excelerator charges a monthly amortised and backweighted Excelerator Fee that increases as and when revenues increase and if agreed revenue targetes are not achieved the program may be canceled.
The end result is that much higher revenues are achieved in a much shorter time.
Under the Excelerator model a Success Fees is also charged whereby a percentage of the increased revenues is shared on a mutual "win-win" basis. Your success is our success and we invest our time and your monies as if we owned the business.
Excelerator is no risk, success and satisfaction guaranteed and has produced proven results.
Business Growth Models: Typical Consultant versus Excelerator Program
INPUT CHART:
RED LINE: Excelerator invests inputs into growth upfront. Typically activity levels diminish over time.
COST/BENEFIT CHART:
RED LINE: Excelerator invests inputs 'up front’ this accelerates revenue growth to significantly higher levels much faster.
BLUE DOTTED LINE: Typical business development costs increase incrementally as revenues increases over time.
RED DOTTED LINE:
Excelerator initially charges a low monthly fee which increases as revenues increase.
Excelerator Fees
The Excelerator team members are remunerated for the services provided under the Excelerator program with the payment of an agreed amortised, back weighted monthly Excelerator Fee. The monthly Excelerator Fee is tiered to increase over time as business revenue increase. In addition, an agreed Success Fees is payable if agreed revenue targets are achieved.
The objective of the Excelerator team is to be paid for their results and not their time. Therefore, the primary focus in on earning Success Fees rather than the monthly Excelerator Fee.
The monthly Excelerator Fee covers four (4) components:
1. The fee for the provision of the various agreed services as specified in the Scope of Works.
2. A nominal monthly fee for Retained Services to maintain and update the Businees Development Plan and to provide any reasonable additional works as may be required during the Excelerator program.
3. A fee for attendances at the regular Business Development Meetings (BDM’s).
4. For ongoing consultancy advice and assistance.
The monthly Excelerator fee is to provide the services to ensure that the Business Development Plan is driven, updated and implemented. It is basically to see that things required to develop the business are done but not to actually do them.
The monthly Excelerator Fee is calculated as a affordable percentage of anticipated gross revenues. Financial modelling is undertaken that examines anticipates cash flow and profit margins to ensure that the business can afford the Excelerator program. It is in no ones interests to drain the financial life blood of a business. The Excelerator team strives to maximise reinvestment in the business in order to maximise 'win-win' Success Fees.
Should the gross revenues not be achieved the Excelerator program may be terminated as specified under the Excelerator Agreement.
Success Fees
Success Fees are paid throughout the duration of the Excelerator program rewarding the Excelerator team members for their 'up front’ investment in the business, their input and for the results achieved.
Success Fee are payable on applicable gross business revenues at the rate/s and above any base targets as agreed.
Typical Excelerator Fees and Success Fees are budgeted at between 5% to 8% depending on business margins and profitability.
Success Fees may increase in incremental steps if agreed revenue targets are achieved and profitabiliy increases.
The Success Fee covers six (6) components:
1. It reimburses the Excelerator team for their 'up front’ investment your business.
2. It rewards the Excelerator team for taking the risk in investing in your business.
3. It is a pay back for providing Excelerator's no result, no risk "Satisfaction Guarantee".
4. It provides a return on the value of the Excelerator team’s contribution rather than just for their time.
5. It shares the reward from the success achieved on a mutual 'win-win’ basis.
6. It pays for some of the additional time invested by the team in delivering business success.
Success Fees are shared by the Excelerator team proportional to their contribution under the Scope of Works.
The Success Fee does not and it cannot cover services provided by an individual member beyond their Scope of Works as all Success Fees are proportionally shared by all Excelerator team members.
Commissions
Where Excelerator team members has been personally responsible for providing an introduction or referral that directly results in the receipt of revenues by the business a commission may be paid as and when agreed.
Additional Service Fees
Additional services may be required or requested by the business which are not covered under the Scope of Works. These may be supplied by Excelerator team members on a separate basis at the cost, terms and conditions as agreed. No additional services shall be provided or expenses incurred without the businesses prior approval.
Expenses
The business shall pay any agreed "out of pocket" expenses incurred during the Excelerator program. "Out of pocket" expenses may include such items as graphic artwork, copy writing, photography, advertising, promotional activities, software, training, car parking, travel, accommodation, interstate and international telephone calls, market research or other expenses incurred directly for and on behalf of the business.
Payments
All Excelerator Fees, Success Fees and Commissions under the Excelerator program shall be received by the Excelerator Convenor and then distributed to the various Excelerator team members.
The monthly Excelerator Fees and any Success Fees are paid according to the Excelerator team member’s proportional contribution to the Excelerator program as specified in their Scope of Works.
The monthly Excelerator Fees, Success Fees and any Commission Fees shall be due and payable by the business on or by an agreed day each month.
A nominated account of Excelerator Convenor shall receive all payments due from the business.
The Excelerator Convenor receives an Overriding Interest on all fees earned and interests received by Excelerator team members during the term of the Excelertor Agreement. The payment of Overidding Commissions are agreed and arranged between the Excelerator Convenor and the various Excelerator team members.
The Excelerator Agreement
For details about Excelerator's Terms and Conditions click >>here
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