A key question when engaging a consultant is their fee and how the project will be priced. In another of his YouTube videos to help manager’s use consultants effectively, Jim Crocker of Boardroom Metrics has posted a video on consulting pricing options.  He lists three options to consider for pricing a consulting project:

1. hourly basis
2. project basis
3. performance basis

The third, involves giving the consultants a share of the upside created by their work. This is a very effective incentive.

The video is posted here.