11:45 – Getting Signed Fee Agreements
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In this week's 11:45, Zach shared insights from small group meetings held on February 19th and 27th focused on strategies for securing signed fee agreements. The discussion centered on addressing challenges with obtaining signed agreements at our standard 33% fee rate while competing against lower-cost recruiting services that charge between 10-25%. Participants examined effective tactics used by top producers to demonstrate value and justify premium fees.
Key Takeaways
Name-Dropping Credibility Points: Leverage specific company credentials to establish authority and justify premium fees.
- Kimmel & Associates is one of only two search firms recommended by FMI (Fails Management Institute)
- Ranked in the top five when Forbes asked construction companies to rate search firms
- The only high-tier search firm alongside Korn Ferry, Heidrick & Struggles, and others that specializes in construction
Smart Negotiation Techniques: Offer concessions that feel valuable to clients while preserving core fee structure.
- Offer 2-5% off the final invoice rather than reducing percentage points from the standard fee
- Present a $0 retainer option that provides retained-level service on a contingency basis
- Document these terms on official paperwork through Lizie Strahan for increased legitimacy
Professional Follow-Up Protocol: Implement high-touch communication to reinforce value proposition.
- Send detailed email confirmation immediately after phone discussions summarizing terms
- Include client testimonials or references from successful placements when available
- Extend warranty periods (example: from standard to 180 days) as a value-added concession
Market Differentiation Strategy: Maintain premium positioning despite lower-cost alternatives.
- Hold firm on fee structure (33%) as it reflects quality service level provided
- Acknowledge price sensitivity while emphasizing service quality differences
- Collect competitor fee agreements through new bounty program ($50 per submission) to analyze terms and strengthen value proposition