Over £10000 a month in retainer fees, with share of savings income on top
Imagine knowing you could have over £10,000 a month coming into your business each month before achieving further income on top through successful project delivery. Thanks to an approach that’s been successfully developed in the past couple of years, Auditel franchisees are able to secure a growing proportion of their income through contracted monthly retainer fees providing significant benefits to themselves, and their clients.
Accelerating cash flow is helpful for new franchisees
When considering starting a franchise, people are often uncertain about the financial risk and ultimately need to make a ‘leap of faith’ in making the decision to join a franchise. Cash flow within any new business is key, and within Auditel, it has always been a priority to ensure that there is sufficient funding in place to ensure that the tough start-up phase of the business.
With willing support from a range of funding resources including leading banks like HSBC and NatWest, plus government back initiatives to support start-ups, there are plenty of finance options available and a helpful business plan tool available too.
Historically, Auditel has always majored on developing clients through a ‘no win, no fee’ share of the savings model, however as Auditel has developed over the years into a broader procurement, supply chain management and business transformation consultancy model the impact has been that clients are secured on arrangements that can provide greater project scope, greater savings for clients, and greater fees for franchisees!
The ‘Full Scope Business Review’ Model
The ‘Full Scope Business Review’ model involves an initial review of an organisation’s expenditure, which could be complicated by multiple sites, as well as multiple suppliers within each ‘cost category’. With Auditel’s expertise, knowledge and extensive resources the preliminary report will identify a strategy of working through the various cost area projects. Each project may involve calling upon other Auditel affiliates who may be ‘specialists’ in particular fields. With well over 100 different cost areas of expertise, Auditel can deliver significant savings to clients, though it is always about achieving ‘best value’ which may not mean ‘cheapest price’.
Monthly Retainer Fees
A monthly retainer fee is agreed from the outset which can vary often from £1500 – £3000 depending on the scope of the projects and approximate time involvement of franchised affiliates. As part of the agreement, there is also a motivation for the Auditel affiliates to deliver savings as a share of the saving will also be involved. This may even be staggered, just to reduce the risk as savings can often be more sizable that the client may be expecting.
Nick Tubb, Head of Recruitment for Auditel, explains why this business model is important for new Auditel franchisees “We train all new franchisee affiliates to engage with clients using the ‘full scope business review’ model. There are a great many benefits though the traditional contingency fee only offering is always there as a back up option. Signing clients on a contracted retainer fee basis enables the franchisee to develop a more in-depth relationship clients looking at the ‘bigger picture’ with the client about how the outcome of undertaking reviews of all business costs can deliver significant results for those organisations that can fuel growth, increased profitability or success by other measures as defined by the clients. Clients gain from a broader range of projects and greater overall savings as a result. A win-win.”
He continues “We are now seeing many affiliates securing both new but also existing clients on this client agreement model. Having clients on retainers with additional fees for savings achievements can mean serious income streams from long-term clients, and you don’t need lots of clients either. Reliance on a share of the saving only will always mean it takes comparatively longer for cash flow to develop and clients are not fully engaging with your services, seeing you more as a broker than a consultant. Auditel’s approach is beneficial all round.”
Enjoy success with Auditel, find out more today
To find out more about how you can make a difference to help organisations that need the benefits that Auditel’s services can delivery, whilst building your own successful consultancy business, contact Nick Tubb today. Email email@example.com, call 01962 893067. Or, visit the Auditel Franchise Candidate Portal at https://portal.auditelfranchise.co.uk/ to explore in-depth information and use the interaction facilities within.