Performance-based fee
Last updated June 15, 2026
Definition
A performance-based fee is a fee paid only out of the savings actually found, with no upfront cost and no retainer. If a review finds nothing, the client owes nothing, so the advisor is paid for the result rather than for the engagement itself.
This structure ties the work directly to the client outcome. Because the fee is a share of what is recovered, agreed in writing before anything changes, the advisor only earns when the client first comes out ahead.
It also makes a review effectively risk-free to start: the downside is bounded at zero, since a review that surfaces no savings costs nothing.
Related terms
See what we would find
The review is independent and risk-free. We work out of the savings we find. If there is nothing to find, there is no fee.