Key Takeaways
1. Proposals are summations, not explanations
A proposal is a summation, not an explanation. It is a summary of the conceptual agreement you've reached with an economic buyer and not a negotiating document or an attempt to make a sale.
Concise and focused. Proposals should be brief, typically 2.5 pages, summarizing previously agreed-upon points with the buyer. They are not meant to educate or persuade, but to formalize discussions. Avoid including unnecessary details like resumes, promotional materials, or extensive charts and graphs. Instead, focus on:
- Situation appraisal
- Objectives
- Metrics for success
- Value to the client
- Methodology and options
- Timing
- Joint accountabilities
- Terms and conditions
- Acceptance
By keeping proposals concise and focused, you demonstrate respect for the buyer's time and reinforce the agreements already made during previous discussions.
2. Establish a trusting relationship with the economic buyer
You want to avoid those people who can say no but can't say yes—the gatekeepers.
Identify the decision-maker. The economic buyer is the person who can write a check without further approvals. To establish a trusting relationship:
- Focus on building rapport during initial meetings
- Share personal and non-public information
- Ask for and offer advice
- Challenge each other's assumptions
- Avoid interruptions during meetings
Indicators of a trusting relationship:
- Buyer shares confidential information
- Buyer seeks your advice on various matters
- You feel comfortable pushing back on ideas
- Buyer prioritizes time with you
By cultivating trust with the economic buyer, you increase the likelihood of proposal acceptance and long-term business relationships.
3. Gain conceptual agreement before writing the proposal
Conceptual agreement is concurrence in theory about what will take place. Once you create this with a true buyer, the proposal will merely support and substantiate that agreement.
Align on key elements. Before drafting a proposal, ensure you and the buyer agree on:
- Objectives: Business outcomes to be achieved
- Metrics: Indicators of progress and success
- Value: Impact of meeting objectives on the organization and buyer
This agreement forms the foundation of your proposal and increases the chances of acceptance. To gain conceptual agreement:
- Ask probing questions about desired outcomes
- Discuss how success will be measured
- Explore the value of achieving objectives
- Address potential obstacles or concerns
By establishing conceptual agreement, you create a shared vision for the project and build a strong case for your proposed solution.
4. Create value-based proposals with clear objectives and metrics
The client is best served (remember about "improving the client's condition") by a fast improvement or resolution, not a slow one.
Focus on outcomes. Value-based proposals emphasize the results and impact of your work, not the time spent or materials used. Key components include:
- Objectives: Clearly state the business outcomes to be achieved
- Metrics: Define specific, observable indicators of progress and success
- Value: Articulate the tangible and intangible benefits of meeting objectives
Example:
- Objective: Increase market share by 15% within 12 months
- Metric: Monthly sales reports showing market share growth
- Value: $10 million in additional revenue, improved brand recognition
By structuring proposals around value, you justify higher fees and demonstrate a clear return on investment for the client.
5. Offer multiple options to increase chances of acceptance
Options escalate business dramatically.
Provide choices. Offering multiple options in your proposal changes the buyer's decision from "Should I do this?" to "How should I do this?" This approach:
- Increases acceptance rates
- Allows for higher fees
- Demonstrates additional value
Typical option structure:
- Option 1 (lowest price): Meets all project objectives
- Option 2 (middle price): Adds extra value beyond basic objectives
- Option 3 (highest price): Offers maximum value and comprehensive solutions
By presenting options, you give the buyer flexibility while increasing the likelihood of securing higher-value engagements.
6. Avoid gatekeepers and intermediaries
You cannot succeed in this business by catering to and dealing with low-level people unless it's to work with them to quickly introduce you to legitimate economic buyers.
Direct access is crucial. Gatekeepers and intermediaries often lack the authority to make decisions and may hinder your progress. To bypass them:
- Clearly communicate your need to speak with the economic buyer
- Explain the ethical obligation to discuss expectations with the decision-maker
- Offer to include the gatekeeper in meetings with the buyer
If necessary, use "explosives" to circumvent stubborn gatekeepers:
- Pursue the buyer directly through other channels
- Mention previous discussions with the gatekeeper
- Emphasize the importance of speaking with the decision-maker
By focusing on economic buyers, you increase your chances of securing valuable projects and building long-term client relationships.
7. Submit proposals quickly and follow up assertively
Speed is of the essence. Too many bad things can happen the longer you wait to submit your proposal.
Act with urgency. Submit proposals within 24 hours of gaining conceptual agreement. This approach:
- Capitalizes on the buyer's excitement and momentum
- Reduces the risk of competing priorities or unexpected events
- Demonstrates your responsiveness and professionalism
Follow-up best practices:
- Set a specific date and time for follow-up during the initial meeting
- Call as promised, even if you reach voicemail
- Use assumptive language: "Which option have you decided to implement?"
- If no response after three attempts, send a polite letter
By moving quickly and following up assertively, you maintain momentum and increase the likelihood of proposal acceptance.
8. Handle objections and rejections professionally
You win some, you lose some, and some get rained out. But you have to suit up for them all.
Learn and improve. When faced with objections or rejections:
- Don't take it personally
- Seek feedback to understand the reasons
- Ask for future consideration and referrals
- Use the experience to refine your approach
Common objections and strategies:
- Lack of budget: Explore reallocation of existing resources
- Timing issues: Emphasize the urgency and value of immediate action
- No perceived need: Create or uncover needs through probing questions
By handling objections and rejections professionally, you maintain relationships and position yourself for future opportunities.
9. Utilize retainers for long-term client relationships
Retainers are "insurance policies" in some respects. They constitute a safety valve, or sounding board, or contingency for the client.
Offer ongoing value. Retainers provide clients with access to your expertise on an as-needed basis. Key considerations:
- Who: Specify the number and level of people with access
- How: Define the scope of interactions (e.g., phone, email, in-person)
- When: Establish the duration of the arrangement (minimum 90 days recommended)
Benefits of retainers:
- Steady income stream
- Lower labor intensity
- Opportunity for deeper client relationships
By offering retainer arrangements, you create long-term partnerships and secure consistent revenue.
10. Continuously improve your proposal skills and increase fees
As your proposals create high rates of acceptance, start to experiment with your approaches.
Refine and optimize. Regularly assess your proposal process and outcomes to identify areas for improvement:
- Analyze which options are most frequently selected
- Evaluate the effectiveness of your value statements
- Experiment with different fee structures and discounts
- Seek feedback from clients on your proposal format and content
As your success rate increases:
- Gradually raise your fees
- Offer more comprehensive solutions
- Explore new markets or industries
By continuously improving your proposal skills and increasing fees, you maximize your earning potential and deliver greater value to clients.
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Review Summary
Million Dollar Consulting Proposals receives generally positive reviews, with readers praising its concise, practical advice on writing effective consulting proposals. Many appreciate the author's emphasis on value-based fees and conceptual agreements. Reviewers find the book helpful for solo practitioners and freelancers, particularly in North America and Western Europe. Some criticize the author's tone as cold or repetitive, and a few note that the content may not apply to all industries. Overall, readers value the book's concrete examples, templates, and guidance on proposal structure and client relationships.
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