Big companies hate rev share, which is essentially what value based pricing model is. Rev share pricing is great for getting small, money-conscious people in the door, but there is a threshold as you get larger where it becomes more cost-effective for the client to go with standard billing.
Substack's been running into this problem, where it's easy to get people to try it out, but as a content creator gets popular the rev share amount becomes greater than the cost to hire an agency and "self-host". Someone making $1mm/yr is going to chafe at a $200k rev share when an agency at $50k/yr retainer can do a similar job.
Unrelated to that but related to the main topic: it's interesting that people treat FOSS consulting as a weird beast and ignore the thousands of successful WordPress/Drupal/etc. consultants and agencies. There's a lot to be learned from analyzing their strategies!
It's not more cost-effective for the client if the work just never happens. Further, I don't care what is more cost effective to them. I want to capture some of that value. That's the mistake these businesses are making and what you need to inform them of.
Substack's been running into this problem, where it's easy to get people to try it out, but as a content creator gets popular the rev share amount becomes greater than the cost to hire an agency and "self-host". Someone making $1mm/yr is going to chafe at a $200k rev share when an agency at $50k/yr retainer can do a similar job.
Unrelated to that but related to the main topic: it's interesting that people treat FOSS consulting as a weird beast and ignore the thousands of successful WordPress/Drupal/etc. consultants and agencies. There's a lot to be learned from analyzing their strategies!