Developing a Fee-for-Services Structure
A fee-for-service structure allows organizations to receive direct payment for the services they provide, enhancing income potential without restricting other funding. This approach offers several advantages, including increased revenue and fewer funding strings. However, it also presents challenges such as the need for effective fiscal management and marketing efforts. To successfully implement this model, organizations must conduct market research, develop a marketing strategy, and establish fair pricing and administration processes. Ongoing evaluation and personal business contacts are essential for sustaining this operation.
Developing a Fee-for-Services Structure
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Presentation Transcript
What is a fee-for-service? • Fees paid in return for the services your organization delivers to fulfill its mission, for training, and for consulting, among others.
What are the advantages of fee-for-service? • It could increase your income substantially • You actually get paid directly for everything you do • Fee-for-service money comes without strings attached • It doesn't stop you from getting other funding • If there's a market for what you're selling, fee-for-service money has no end
What are the disadvantages of fee-for-service? • It requires another level of fiscal management • It requires careful regulations of your funders • You have to market your services • You may scare some participants away because of the cost • You may have to chase down money that's owed
Who might pay for your services? • Third parties who desire services for people in whom they're interested • Direct recipients of services • Parties who desire consulting, rather than direct, services
How do you develop a fee-for-service structure? • Conduct market research to find out whether there is a market for your services • Develop and implement a marketing plan • Determine and set fair prices for your services • Create an administrative structure to handle your fee-for-service operation
How do you sustain a fee-for-service operation? • Continue to update and implement your marketing plan • Maintain personal contacts at businesses and organizations • Continually evaluate what you're doing
