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  • Writer's pictureJoel White

Putting it all together

While milestone / fixed fee contracting feels like a leap of faith, consider its many positive attributes relative to the alternatives (chart below).

While hourly and unit structures feel "safe", they often misalign the incentives of the buyer and seller, and lead to commoditization of service providers.

Like any leap of faith, the experience of taking the leap and learning from those experiences provides the data and self-confidence to keep pushing forward and improving your outcomes. Fixing fees to mutually agreed results aligns incentives, provides predictability and streamlined financial management for the buyer, and, if done right, maximizes profitability for the service provider.


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