Fee Structure For IZE Services
The IZE Innovation Group is primarily a consulting company, so we charge for consulting services. We also receive renumeration for initiating and bringing about a corporate acquisition.
Start-ups have no money. There are four tasks that start-ups generally need help in:
Getting to a successful exit - here we have contract to obtain a commission on the start-up's exit.
Specific business skills - here, you should charge for work as a consultant. It is cheaper for the start-up to just pay for the services than to have a hired full-time employee. We suggest rates at $250 - $500/hr, depending on the task.
Searching for an exit - here, our search work, as well as the continued mentoring/coaching work to get to an exit are all FREE to the start-up.
Sales - here, we request the start-up pay the standard sales commission for any work where we obtain paying customers.
Cities and Municipalities
Cities and municipalities are also strapped for cash, but there is always ways to be paid for services provided:
Searching for innovation: helping municipalities find the start-ups doing innovation work relevant to that city is free (our social responsibility stance).
Providing policy positions: providing any skilled consulting work such as crafting legislation, promoting policy or managing actual implementation should be compensated at standard consulting rates of $250 - $500/hr.
Established companies seeking innovation are more likely to pay for the services. Here are what you can charge for:
Searching for innovation: here, the company should pay you a monthly retainer fee. Range should be $1000 - $5000/month.
Consulting services: here, you should charge a standard consulting service rate for providing any specialized consulting services
With established companies, there is no reason to offer free services. Just make sure that the rates you propose is significantly lower than what it would cost them to hire one person full time.
Individuals and each other
Helping each other with simple advice and referrals is, of course, free. Any substantial amount of work should be compensated for and contracts can and should be drafted for the agreement. Some compensation may be commission based, and some should be paid on a regular schedule (twice a month, for example). Certainly, commissions for helping a start-up exit via an acquisition should be paid as a percentage of the commission. If there are uncertainty or lack of clarity, please don't hesitate to contact the executive team.