Performance-Based Pricing: Bold Innovation or Business Killer?

Should You Be Paid for Results?

A gentle look at performance-based pricing — and why it might not be the win you think it is.

At first glance, it sounds bold.
Fair. Logical. Even exciting.

“Only pay me if it works.”
“Let me prove myself first.”
“My fee depends on your outcome.”

It’s called performance-based pricing.
And it’s becoming more common — especially in marketing, consulting, coaching, and service-based industries.

But let’s pause.

Because what looks brave on the outside…
Might actually be a boundary blur in disguise.

Here’s what performance-based pricing often assumes:

☐ You can control the client’s results
☐ They’ll do the work, follow the plan, and implement everything perfectly
☐ You’re responsible for what happens after delivery — forever

But here’s the truth:

You can design the strategy.
You can build the system.
You can offer the coaching, the tools, the roadmap.

And still — the outcome lives in their hands.

Let’s talk about real responsibility.

You are responsible for your effort.
Your ethics.
Your expertise.
Your experience.

You are not responsible for someone else’s follow-through.
You are not responsible for their timelines, their choices, their internal readiness.

And tying your income to their performance?

That’s a risky trade.
Not just financially.
But emotionally.

It quietly says, “I only get paid if you succeed.”
And success is rarely that simple.

What happens when the client doesn’t implement?

What happens when the market shifts, the ad doesn’t land, the campaign gets stuck in committee, or the leadership team resists the change?

Do you get paid less?
Not at all?
Do you renegotiate?
Do you explain again why your work still has value?

This pricing model sounds brave.
But for many? It becomes a slow erosion of worth.

A gentle alternative: value-based pricing.

You charge based on the value of your contribution — not someone else’s outcome.
You define what’s included.
You deliver with excellence.
And you trust your work enough to let it stand on its own.

This isn’t arrogance.
It’s alignment.

You’re not trying to control results.
You’re showing up with clarity, care, and consistency.

That’s enough.

Final thought

Performance-based pricing can work — in the right relationship, with the right boundaries, and the right systems in place.

But it’s not a requirement for proving your value.

You don’t have to tie your income to someone else’s outcome to be taken seriously.
You don’t need to be “paid on results” to be trusted.

You just need to be clear.
About what you do.
What you deliver.
And what your work is worth — regardless of what happens next.

Lead with trust.
Price with integrity.
And let your value speak for itself.

Quietly. Powerfully. On purpose.

Kadena TateSimon

Hello, my name is Kadena Tate.

I am a revenue strategist for female service-oriented entrepreneurs who want to create multiple streams of income, without working harder. I help you get exactly what you want, which is more clients, more money, and more vacations.

https://www.kadenatate.com
Previous
Previous

Subscriptions Are Not Just for Recurring Revenue: You’re Missing the Real Power

Next
Next

The Era of One-and-Done is Over