In short
Choose the model that matches who controls the outcome. Pay for capacity (subscription, hourly, flat fee) when results depend largely on your offer and follow-up. Pay on results (per qualified lead, success fee, commission) only when the result is clearly defined and mostly within the provider's control. Hybrids share the risk. Whatever you choose, write the trigger, base, rate and duration into the order.
The common models
Commercial services are usually paid in one of these ways, or a combination:
- Subscription: a monthly fee for continuous capacity.
- Hourly or daily rate: time spent, suited to advisory or variable work.
- Flat fee per campaign or project: a defined scope at a fixed price.
- Fee per qualified lead or meeting: paid when a defined event occurs.
- Success fee: paid when a contract or partnership results.
- Commission: a percentage of revenue from attributed deals.
- Hybrid: a reduced fixed part plus a variable part.
Match payment to control
A provider can control how many calls it makes and how well it qualifies. It cannot control your price, your product or how quickly your team follows up. Paying only on signed revenue therefore transfers risks the provider cannot manage, which usually leads to higher rates, cherry-picking or disputes. Paying only for time transfers all risk to you. The right balance depends on the service.
Define the trigger precisely
Results-based payment works only with a precise trigger. "Qualified lead" must refer to written criteria; "success" must say whether it means a signed contract, a first order or a paid invoice; commission must state the revenue base (excluding tax? net of discounts?) and how long after an introduction it applies.
Attribution
When several sources touch the same customer, who gets credit? Agree a simple rule — for example, the first documented introduction within the past twelve months — and keep a dated log. Ambiguous attribution is the most common source of disputes in success-based arrangements.
Review the model
A model chosen at the start may not fit after six months. Plan a review: if qualified leads are consistently rejected, the definition needs work; if the fixed part feels too high for the activity, adjust scope. Changes should be written into an updated order.
Worked example
Example: choosing a hybrid (hypothetical)
A software vendor wants outsourced prospecting but is unsure of results in a new segment. It agrees a reduced monthly fee covering list building and calling, plus a fixed amount per contact accepted by its sales team against three written criteria. After three months, acceptance is stable and the parties agree to add a small commission on first-year revenue for contracts signed within six months of the handoff.
What the order must state
- Model and fixed amounts
- Exact trigger for any variable payment
- Revenue base and rate for commission
- Duration of attribution
- Attribution rule when sources overlap
- Review date and change procedure
Pay for what the provider controls, define every trigger in writing and review the model once you have data.
Examples in this guide are hypothetical and illustrate the method; they are not client cases.