# Selling Outcomes

## Outcome / Performance-Based (Success / Contingency / Gainshare)

**Definition (short).** You only get paid (or get most of your pay) if a predefined outcome is achieved—e.g., a hire is made, a lawsuit is won, a deal closes, a KPI target is hit. You trade certainty for upside: lower or zero base fees, larger “success fees” when you deliver.

**Recent example.** Contingent recruiters typically charge [15 – 25 % of first-year salary](https://www.recruiterslineup.com/contingency-recruiting-fee-structure/?utm_source=chatgpt.com) only if the candidate is hired (e.g., $20 k on a $100 k role). Personal-injury lawyers in the U.S. commonly take [30 – 40 % of the award](https://www.americanbar.org/groups/legal_services/milvets/aba_home_front/information_center/working_with_lawyer/fees_and_expenses/?utm_source=chatgpt.com) on a “no win, no fee” basis. Investment banks collect “success fees” of [\~ 1 % on mid-market M\&A deals](https://firstpagesage.com/business/ma-advisory-fee-structure/?utm_source=chatgpt.com), falling as deal size rises. Performance marketing/affiliate programs pay only on conversion or sale.

**Historical example.** Real-estate brokers since the late 19th century have been paid a [5 – 6 % commission on sale price](https://www.investopedia.com/articles/active-trading/031215/how-real-estate-agent-and-broker-fees-work.asp?utm_source=chatgpt.com) (split between buyer and seller agents). Maritime “no cure, no pay” salvage contracts go back centuries: salvors only get paid if they save the ship or cargo ([Lloyd’s Open Form](https://en.wikipedia.org/wiki/Lloyd's_Open_Form?utm_source=chatgpt.com)).

<figure><img src="/files/yIQ5ZFwnPe1Q8Z7pNJiB" alt=""><figcaption></figcaption></figure>

#### KPI Definitions

**Expected Value per Engagement (EVPE).**\
\&#xNAN;*Pseudo:* `EVPE = (Success_Rate * Fee_per_Success) − Cost_per_Opportunity`.\
\&#xNAN;*Why it matters:* A CEO needs to know if the portfolio of bets is positive EV; high EVPE means your pricing and screening compensate for failures.\
\&#xNAN;*Benchmark:* A healthy contingency recruiter might target [EVPE ≥ 2× direct delivery cost per search](https://www.recruiterslineup.com/contingency-recruiting-fee-structure/?utm_source=chatgpt.com), given \~25 % fill rates and 20 % fees.

**Success Rate % (SR).**\
\&#xNAN;*Pseudo:* `SR = Successful_Engagements / Total_Engagements * 100`.\
\&#xNAN;*Why it matters:* Low SR means wasted effort; high SR indicates strong screening or execution.\
\&#xNAN;*Benchmark:* Contingent recruiters report [20 – 30 % fill rates](https://www.recruiterslineup.com/contingency-recruiting-fee-structure/?utm_source=chatgpt.com); plaintiff lawyers often claim [60 – 90 % win/settle rates](https://www.americanbar.org/groups/legal_services/milvets/aba_home_front/information_center/working_with_lawyer/fees_and_expenses/?utm_source=chatgpt.com).

**Average Fee per Success (FPS).**\
\&#xNAN;*Pseudo:* `FPS = Total_Success_Fees / Successful_Engagements`.\
\&#xNAN;*Why it matters:* Together with SR it defines revenue potential; larger FPS can offset lower SR.\
\&#xNAN;*Benchmark:* Recruiting: [15 – 25 % of first-year salary](https://www.recruiterslineup.com/contingency-recruiting-fee-structure/?utm_source=chatgpt.com). M\&A advisory: [\~ 1 % on mid-sized deals](https://firstpagesage.com/business/ma-advisory-fee-structure/?utm_source=chatgpt.com). Legal contingency: [30 – 40 % of settlement](https://www.americanbar.org/groups/legal_services/milvets/aba_home_front/information_center/working_with_lawyer/fees_and_expenses/?utm_source=chatgpt.com).

**Cost per Opportunity Closed (COC).**\
\&#xNAN;*Pseudo:* `COC = (Sales + Delivery Costs for that Engagement)`.\
\&#xNAN;*Why it matters:* If COC creeps up, your EV per engagement shrinks; it’s the denominator for pricing.\
\&#xNAN;*Benchmark:* Top recruiters keep delivery cost [< 25 % of expected fee](https://www.recruiterslineup.com/contingency-recruiting-fee-structure/?utm_source=chatgpt.com).

**Total Opportunities Undertaken (OPP).**\
\&#xNAN;*Pseudo:* `COUNT(engagements_started)`.\
\&#xNAN;*Why it matters:* Volume drives total revenue potential but can dilute focus and SR if you take weak deals.\
\&#xNAN;*Benchmark:* A single recruiter handling [5 – 10 searches at once](https://www.recruiterslineup.com/contingency-recruiting-fee-structure/?utm_source=chatgpt.com) is typical.

**Average Cycle Time to Outcome (CT).**\
\&#xNAN;*Pseudo:* `mean(end_date − start_date)`.\
\&#xNAN;*Why it matters:* Long cycles tie up resources and delay cash. Faster cycles improve annualized EV.\
\&#xNAN;*Benchmark:* Recruiters aim [30 – 60 days to fill](https://www.recruiterslineup.com/contingency-recruiting-fee-structure/?utm_source=chatgpt.com).

**Client Value Delivered $ (VAL).**\
\&#xNAN;*Pseudo:* `Σ client_value_metric`.\
\&#xNAN;*Why it matters:* Validates fee size and proves ROI; helps negotiate better splits.\
\&#xNAN;*Benchmark:* Gainshare consulting commonly takes [10 – 30 % of measured savings](https://firstpagesage.com/business/ma-advisory-fee-structure/?utm_source=chatgpt.com).

**Provider % of Value (Split %) (SPLIT).**\
\&#xNAN;*Pseudo:* `Fee_per_Success / Client_Value * 100`.\
\&#xNAN;*Why it matters:* Ensures pricing aligns with delivered value; too low = leaving money on table; too high = client pushback.\
\&#xNAN;*Benchmark:* Typical splits: [10 – 30 % for gainshare consulting](https://firstpagesage.com/business/ma-advisory-fee-structure/?utm_source=chatgpt.com), [\~ 5 – 6 % realtor commission](https://www.investopedia.com/articles/active-trading/031215/how-real-estate-agent-and-broker-fees-work.asp?utm_source=chatgpt.com).

**Acquisition & Delivery Cost / Opportunity (ACQCost).**\
\&#xNAN;*Pseudo:* `Total_S&M + Delivery_Pre-fee / Opportunities`.\
\&#xNAN;*Why it matters:* This feeds the EVPE equation; if ACQCost rises faster than FPS or SR, your economics deteriorate.\
\&#xNAN;*Benchmark:* Growth-stage firms watch that ACQCost stays [< 50 % of EVPE](https://www.sage.com/en-us/-/media/files/sagedotcom/master/gated-assets/intacct/whitepapers/2023-professional-services-maturity-benchmark.pdf?utm_source=chatgpt.com).

**Risk Screening Score (RISK).**\
\&#xNAN;*Pseudo:* `score = f(evidence_strength, client_commitment, precedent, achievable_value)`\
\&#xNAN;*Why it matters:* Good screening improves SR and EVPE; bad screening floods pipeline with losers.\
\&#xNAN;*Benchmark:* Top contingency firms accept only [< 10 % of inbound PI cases](https://www.americanbar.org/groups/legal_services/milvets/aba_home_front/information_center/working_with_lawyer/fees_and_expenses/?utm_source=chatgpt.com).

**Qualified Pipeline % (PIPE).**\
\&#xNAN;*Pseudo:* `Qualified_Opps / Total_Opps * 100`.\
\&#xNAN;*Why it matters:* Focused pipelines save cost and maintain SR.\
\&#xNAN;*Benchmark:* Many high-end firms keep [\~ 30 – 50 % of inbound leads](https://www.recruiterslineup.com/contingency-recruiting-fee-structure/?utm_source=chatgpt.com).

**Work-in-Progress Load (WIP).**\
\&#xNAN;*Pseudo:* `COUNT(active_engagements)` or `Σ hours_in_progress`.\
\&#xNAN;*Why it matters:* WIP must match team capacity; overload reduces SR and elongates CT.\
\&#xNAN;*Benchmark:* Recruiters handle [5 – 10 live searches](https://www.recruiterslineup.com/contingency-recruiting-fee-structure/?utm_source=chatgpt.com).

**Client ROI Multiple (ROIc).**\
\&#xNAN;*Pseudo:* `Client_Value / Fee_Paid`.\
\&#xNAN;*Why it matters:* A solid ROI story justifies your fee structure and helps renewals/referrals.\
\&#xNAN;*Benchmark:* Gainshare deals often promise [3 – 10× client ROI](https://firstpagesage.com/business/ma-advisory-fee-structure/?utm_source=chatgpt.com).

**Cap / Floor Clauses % (CAP).**\
\&#xNAN;*Pseudo:* `Deals_with_cap_or_floor / Total_Deals * 100`.\
\&#xNAN;*Why it matters:* Caps can limit upside; floors protect downside—balance both.\
\&#xNAN;*Benchmark:* Recruiters often have [minimum flat fees (\~$10 k)](https://www.recruiterslineup.com/contingency-recruiting-fee-structure/?utm_source=chatgpt.com).

**Top-5 Clients Revenue Concentration % (CONC) (aux).**\
\&#xNAN;*Pseudo:* `Rev_top5 / Total_Rev * 100`.\
\&#xNAN;*Why it matters:* A whale leaving can crush EVPE and SR.\
\&#xNAN;*Benchmark:* Aim for [< 50 %](https://www.sage.com/en-us/-/media/files/sagedotcom/master/gated-assets/intacct/whitepapers/2023-professional-services-maturity-benchmark.pdf?utm_source=chatgpt.com).


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.getdot.ai/ai-analytics-wiki/kpi-trees/selling-outcomes.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.