Business

What is Contingency pricing?

A pricing model where the service provider is paid only if and when a measurable result is achieved — fees are a percentage of the recovered or generated value.

Contingency pricing (also called success-based or performance-based pricing) is a fee structure where the provider charges nothing upfront and earns only when a measurable outcome is achieved.

How it works in financial recovery

A typical contingency engagement:

1. Free diagnostic — provider identifies recoverable value 2. Recovery work — provider executes the recovery (filing, negotiation, audit) 3. Confirmation — money lands in client's account 4. Payment — client pays an agreed % of confirmed recovery

If no recovery occurs, the client pays nothing.

Why incentives align

Under contingency, the provider only earns when the client genuinely benefits. This is structurally different from:

Hourly billing — provider earns whether or not value is created
Retainers — fixed fee regardless of outcome
Subscription — recurring fee independent of value delivered

Where it works

Contingency works for any service where outcomes are objectively measurable: legal damages, tax credit recoveries, audit-based refunds, negotiated savings. It doesn't work for advisory, strategy, or open-ended consulting.

Fruxal operates on contingency for financial recovery: 12% of confirmed recovery, paid only after savings land.