A short excerpt from a YouTube video by Daniel Fazio arguing against pure performance-based pricing. He explains that when payment depends only on performance, clients lack incentive to do simple but necessary tasks (e.g., share an ad account), so meaningful upfront or guaranteed payments are needed to ensure engagement.
That's always an issue with things like that, because you might get an objection from somebody, but, well, if you're so invested in our growth, why don't you charge a percent and do like, a performance base? Well, the reason why is because if I charge you a performance base, you have zero incentive to actually execute upon just the simplest things I need you to do. Just as an example, sharing the AD account. And it just won't even do that because there's no money out. There has to be money out, and it has to be like, a relatively significant portion to where they're like, yeah, I will actually engage with this.
