Comments on: The Prostitute Principle

By: computer repair

computer repair — Sun, 30 Oct 2011 07:56:42 +0000

Nice post, I fact I work in this business for some time and still not know what this meant till I read this post. Very useful information and a good article.

Thanks for the valuable info here.

By: Ross Slater

Ross Slater — Thu, 31 Mar 2011 16:17:03 +0000

It is a challenge to get paid after providing the value because then the client can decide to track the hours and “negotiate”. However, if you have a clear “unique process” as learned through Dan Sullivan at Strategic Coach (www.strategiccoach.com), then it really becomes easy to charge up front. Our prospects know that if they want to engage us, we invoice up front for each stage.

We’ve been doing this in our business for a long time. And it has solved a number of issues that would otherwise have been challenging for our growth.

We were even interviewed in the Globe & Mail – “How To Get Paid Like Michael Dell” by John Warrillow (http://www.theglobeandmail.com/report-on-business/your-business/exit/how-to-get-paid-like-michael-dell/article1429350/). Big companies do this as well – like the print-on-demand book publishers. You pay, they print and ship. Easy-peasy.

Nothing’s perfect, but by charging up front, the only obstacle is our own confidence about what to charge!

By: rapid prototype

rapid prototype — Sat, 12 Feb 2011 00:31:09 +0000

Another approach that would also satisfy the customer would be to create a prototype. This way it gives the customer an idea of what they are paying for before thye have to pay. It is a good compromise.

By: Henry from a Singapore Web Design company

Henry from a Singapore Web Design company — Sat, 22 Jan 2011 14:02:44 +0000

Hi, this reminds me when I was working as an engineer and read about the story from MIT, which relates a true story about an excellent engineer who has retired from GE. When there was an issue which the company could not solve, he was called in and gave the instructions to fix the problem. GE then received a bill for US$10,000, and told the engineer to break down and explain the cost. He wrote “Chalk $1″… “Knowing where to mark the Chalk $9,999″. GE paid up.

By: heidi

heidi — Mon, 08 Nov 2010 12:43:41 +0000

I hate clients like your example. They want to get the job done “perfectly” and fast but doesn’t want to pay you with the right amount. I have already experienced that. I am a graphic artist. A client went back to me for another project because he likes my work. When I told him the price it would cost him (which is very reasonable), he told me that his designer can do the job faster and cheaper. I did not agreed with what he wanted.

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By: Magic Microphone

Magic Microphone — Fri, 13 Aug 2010 21:11:58 +0000

ohhh oooo!!!! i never knew that even prostitute have principle untill i read this post…

By: Lucas | Miami Web Design

Lucas | Miami Web Design — Sun, 08 Aug 2010 02:37:59 +0000

I always ask for an initial payment. I have learned the hard way and then I also realized that money asked out front puts you in an important position.

By: Vstrategy

Vstrategy — Thu, 05 Aug 2010 07:46:41 +0000

That post reminds me that businessman are using different business techniques. Thanks for your post.

By: fubarrio

fubarrio — Wed, 12 May 2010 23:35:58 +0000

i am getting a little bit nervous though. with posts with the words, “bookie”, “prostitute” and “smoking crack” in the titles i’m starting to get some ‘interesting’ search traffic

By: Cake Rakeback

Cake Rakeback — Wed, 12 May 2010 08:24:28 +0000

This is great! I had no idea that call-girl mathematics could be so useful in a business setting. I am eager to learn more. You’ve found yourself a loyal reader, for sure.
Thanks, Rake.