As we've seen on several occasions since the last edition of this book, life has nasty surprises at times: natural disaster, pandemic, social unrest, vituperative elections, recession, technology disasters, and all the rest of Pandora's Box.

But that's also been the way of history. Here's a brief example of firms that have been created in the midst of such volatility:

• Netflix (1997) Dot.com bubble burst
• Airbnb (2008) Recession
• Trader Joe's (1958) Poor economy
• Microsoft (1975) Stagflation
• Sports Illustrated (1954) Recession
• MTV (1981) Poor economy
• GE (1876) Panic of 1873 and recession
• Warby Parker (2010) Recession
• Revlon (1932) Depression
• Disney (1929) Depression

Don't think that the economy dictates your fees.

VALUE DOESN'T DISSIPATE DUE TO DISTANCE

Most professional services firms were adversely affected by the 2020 pandemic. Some disappeared, some struggled, some stabilized, and some thrived as time passed by. Professional speakers who relied solely on appearing somewhere in person were traumatized. Meetings were cancelled. They were unfamiliar with remote presentations, and clients were leery of them.

But the ultimate error in professional services was in lowering fees because the professional couldn't be there in person. If you believe in value-based fees, then you know that being someplace in person is not your value. But speakers and others immediately began lowering fees!

We must accept and instantiate the idea that our value doesn't dissipate with distance. Providing coaching, advice, financial expertise, technical support, consulting services, and even speaking at events can be done with high value from afar.¹ If you consider your own history, you've probably been very effective for people by the primitive means of phone and e-mail, yet now we have Skype, Zoom, and other methodologies no doubt invented between my writing this and your reading it!

There are major advantages to remote work:

• The client doesn't have to assemble people in one spot.
• The session can be recorded for revisiting and people who couldn't make the original.
• There are no travel expenses for the professional to be reimbursed.
• It's far easier to delay or reschedule if needed.
• People can attend individually or in groups or pairs.
• Visuals can be easily presented.
• Some alternatives, such as Livestream, have no limit on numbers.
• It's far easier to reach a global audience.
• It can be highly private if one-on-one work is required.
• There is an automatic recording of the interaction if desired.
• You can mute participants to avoid distraction and noise.

Trusted advisors have been important because they are accessible and responsive. They have not been required to be present. Consequently, why do any of us really need to be present, and why does “presence” carry some unique value?

In all fairness, interacting in a meeting, or across a desk, or at a meal, or on a stage has benefits. We can see body language, we can exert body language, we have greater range of movement and latitude of action. It's easier to use visual aids, easier to take questions, easier to use separate groups in learning.

But these are benefits, not value. Being present makes some things easier but not necessarily better. Thus, we're often working a bit “harder” to accomplish things remotely. And I've listed the benefits of not being present in my previous comments.

So there is precedent for not being on-site yet still providing value, and there is a clear case to be made that there are benefits to the client in this mode and you may be working a bit harder to create the desired results.

So why on earth reduce your fees?

I recall when I was a “road warrior” and I wanted to make sure that I had my overnight kit, my electronic boarding pass with pre-check, and my global entry credentials. Then I began using a local facility eight minutes away and clients came to me, so I just has to ensure that I had my notes and my cell phone. Subsequently, I built a retreat center in my house, using Livestream, and I had a one-minute commute and only had to make sure my clothes matched and nothing was stuck in my teeth. Then I went to Zoom and didn't even have to worry about wearing pants.

WE DON'T HAVE TIME, WE DON'T HAVE MONEY

This has become a common response during crisis times. (Those of you who specialize in nonprofits are well accustomed to these plaints in all times!) Too many people pack their bags, fold their tents, and clear out when they hear these “obstacles.”

There is always time and always money because these are priorities, not resources. The question is not whether they exist, the question is how they are allocated.

A college professor once told me that “war is simply the least subtle form of communication.” Similarly, crises present the least subtle form of perceived hardship. But this is generally a chimera. If organizations can be founded amidst difficult times (see the beginning of this chapter) and innovation can flourish in any times (warfare generally provides astounding innovation in medical procedures, communications, and technology), then there is never a time to believe in zero investment and zero growth.

The solipsist attitude of hunkering down and ignoring the environment—ostrich-like—simply drives firms out of business. You can easily make a case that boldness and investment are more important in tough times than at any other times.

Your job is to create the urgency and emotional connection that encourages buyers to reallocate their priorities so that time and money are better invested with you than with existing needs, because you offer such a better return on that investment. Your prospects have three choices during crisis:

1. Try to hang on, take on debt, and hopefully stay afloat until it's over.
2. Stabilize, tolerate small decline or stagnation, and outwait the problem.
3. Responsibly invest to continue to grow and emerge post-crisis as dominant in the market.

There are three types of innovation to accomplish number 3:

1. Opportunism: You experience a trigger that you can exploit to prosper. Consider all the apps and protective cases and ear buds for smartphones.
2. Conformist Innovation: You significantly improve on an existing service or product. Uber is merely a far better taxi service, which people prefer to smelly taxis with drivers who don't know destinations, chat on their iPhones, and speak broken English.
3. Non-Conformist Innovation: You create a new mechanism or dynamic to improve people's lives. Amazon represents a radically new distribution alternative. Netflix went from renting videos to streaming services.

When we provide the value that can enable organizations not merely to thrive but to prosper in the midst of perceived chaos and calamity, we are more valuable than ever. And the money is there to be reallocated. No buyer awakes in the morning and says, “I think I'll budget $150,000 in case someone I never met shows up at my door with an idea I haven't considered.” But once that does happen, the money can be found. Most large organizations are spending more than $100,000 for each of these needs: to mist office plants, to plow the parking lot, for breakage, and for theft.

Some organizations find solace in the fact that they've reached a calm spot amidst chaos and crisis, but in fact they are merely in the eye of the storm and will have to fly out again. Turbulence, life after-shocks following an earthquake, can be a long-term problem. That's why there are seldom official “start and stop” dates with a crisis! But there is shock, stabilization, and recovery if a company is well led and bold.

HOW CAN I HELP YOU?

If fees are a function of value, then how do you best express value in times of high ambiguity and volatility. Counterintuitively, you give it away.

In times of crisis, no matter what the cause, your immediate reaction must be to offer help. You must call everyone you know, client or non-client, recommender or prospect, and make this inquiry: How can I be of help?

You will only receive one of three answers, assuming a rational human being on the other end.

1. Things are too chaotic, we don't even know what help to ask for.
2. What kind of help are you offering?
3. We need help with … (fill in the blank).

And, here are your possible responses:

1. May I share with you the kind of help my other clients, in your same condition, are most utilizing to great success?
2. What's your greatest need? If it's within my competency, I'm happy to help.
3. Let focus on X right now (your strongest suit).

Like attorneys who are told to never ask a witness a question to which they don't already know the answer, you should be prepared for these most likely responses. (If someone were to say, “I need help with beaming up to the Mother Ship,” I'd end the call.) I know what you're now thinking. They'll tell me they have no money or time.

Refer back to earlier discussions about money and time being priorities, not resources. But even more than that, this should be your secondary response:

At this point, some clients insist on a payment agreement, because they feel it's unfair to accept a “handout” when they do, in fact, have money they can reallocate. Some will say, “That's generous, but we'll settle up when I can.” And others will say, “I'd be foolish not to accept your help on that basis.”

If the client really can't pay, make the project or advice as brief as possible, perhaps 30 days. I strongly advise that you suggest an advisory role so as to minimize your labor intensity but still provide high value.²

All crises pass, and you'll be remembered for your gesture and fine work, and you'll move to the top of that priority list for investment I've been alluding to. You have to subordinate the need to receive a fee in the short-term in order to maximize your fees in the longer-term during crisis periods.

Assume your help is more needed now than ever when in turmoil and chaos, and consider yourself a key resource for important prospects and recommenders.