If you allowed your clients to decide how much to pay you, what sort of fee would you receive? It’s a question that co-founder Sean Russo’s risk management firm Noah’s Rule tackles every day.
“We let our client decide how much they should pay us. The client determines the fee and it’s entirely up to them to determine whether we have added value to their company.”
“For a year and a half, we didn’t pay ourselves. Any revenue we earned went back into the company to help us market, and to pay the lady who helped us in the office. We just spent that time establishing our name, and getting work by word-of-mouth.”
“But we needed to charge more, and we didn’t know how to do that initially. But when we had established a track record we wrote a letter to all our clients saying “we’re not charging enough for our services”. That’s when we introduced this fee the client decides upon. We charge a fixed fee, then they pay another fee that is up their discretion. It’s been incredibly successful.”
“We recorded $2.6 million in revenue for 2007-08 with 5% growth in 2008-09 to reach $2.73 million.”
Read a full profile of Noah’s Rule co-founder Sean Russo.
You can help us (and help yourself)
Small and medium businesses and startups have never needed credible, independent journalism and information more than now.
That’s our job at SmartCompany: to keep you informed with the news, interviews and analysis you need to manage your way through this unprecedented crisis.
Now, there’s a way you can help us keep doing this: by becoming a SmartCompany supporter.
Even a small contribution will help us to keep doing the journalism that keeps Australia’s entrepreneurs informed.