Hi there,

I think it's an interesting concept, which btw. many MBB engagements are adopting as well at the moment with fees at risk if they do not deliver the desired impact.

I'd definitely be up for it as it shows clearly who can provide value and thrive on such an arrangement vs. who cannot and uses baseless claims on their success rates.

I see two downsides:

1. The performance on the interview day of a candidate is not something a coach can influence 100%. A strong coach can give you the right tools, resources, and thinking to succeed, multiplying your odds by many X, yet if you make simple calculation errors twice during the interview because you are nervous and get rejected, who is really to blame? There is a certain element that is up to chance and swings of day-to-day performance (even in the best-prepared interviewees)
2. Such an agreement would need to be structured properly because who guarantees payment once you succeed? There are ways to deal with this, however, so it is not really a dealbreaker, e.g., escrow

Given the first downside, an interesting model would be a fixed fee + a success-based bonus. There would need to be some changes in the T&Cs of PrepLounge to make this a reality and I would be happy to take part in a pilot program.

Cheers,

Florian

Hey mate  - 

Feel free to reach out to me. Happy to have a discussion based on your situation. 

Hi there, 

Message me to discuss more about this. we can set up a short intro call. good luck..

Look, would you like to get paid by MBB only if you perform well or if there is a project for you? I don't think so. 
Same here. 

Besides, PrepLounge does not support this nonsense.

At first, it seems like a great idea. But then you really think about the incentives in place, and they aren't really working in your benefit. 

If the candidate doesn't have to pay, that means that every candidate is happy to have a session. There's no risk for them. They may not be willing to put in the effort, they may know they have no chances at all, but what do they lose by doing a free coaching session? Nothing. Some candidates need 1-2 seesions, other need 3-4, and there's the occasional candidate that wants to use the coach as the only person who they do cases with… 

So, if you are a coach and you want to maximize your profit, you need to “veto” first your candidates. Candidates that are sure to get the job. Candidates that don't need much work. The better you “veto”, the better you do. You'll actually do better by spending extra time veto'ing candidates than by just coaching them. 

This is exactly how the model you suggest has been implemented. You apply, they check if you are high potential, and if you are, they'll take x% of your annual salary. They select candidates that don't need much coaching, and are highly commited, and then take a % of their salary. Then they advertise how successful they are in getting offers… but their success is not in the coaching process but in the “selection process”. I suggest running away from that model as fast as you can. Your incentives are simply not aligned.

Nevertheless, risk sharing is a good idea (but what you suggested is not risk sharing, but instead risk transfer from the candidate to the coach). For example, having a base price for a session + extra in case of success could be a reasonable model. However, it is not how Preplounge works, and has the logistics problems (credit risk, time of payment…) that others mentioned.

Coaching can be an enabler and help individual's in the process of unlocking more of their potential. In this, the coach can give direction and advice but only the individual is in charge of actual implementation. 

You find different coaches on here that charge different hourly rates. That's a way for you to hedge your financial downside if you are concerned that you might be wasting your money. But for a success-based fee to be viable and fair, the coach would have to have more control over the outcome (e.g. taking the interviews for you) which is by default not possible of course

Hi there,

You can discuss payment terms on a case by case scenario. I would recommend reaching out to the right coaches and discussing this further as needed.

Mario