The Fallacy Behind Success-Based Consulting Fees
Why do companies believe that top-tier expertise should be free?
This is a question I ask myself every time someone suggests that I should work exclusively on a success-based fee structure.
Why should a consultant take on the full risk when the client is not willing to take any? - eM.
Would you only pay your lawyer if you win the case? Of course not. Because it’s not about whether a case is won or lost, but about the fact that an expert applies their knowledge, experience, and strategic competence to achieve the best possible outcome.
It’s no different when it comes to grants and consulting fees. There is no guaranteed success—because grants are competitive. Even the best applicant cannot control which other projects are submitted or how political priorities shift. An excellent application maximizes the chances but cannot generate grant money out of thin air.
And yet, there are clients who believe that consultants should work "at risk." That months of research, strategy development, proposal writing, and coordination with authorities should be done for free—unless the application is approved.
That is not just an unsustainable business model—it is disrespectful. - eM.
Because no professional consultant is a "lottery insurance" for their clients. Companies applying for grants must understand: Those who invest in quality significantly increase their chances of success—those who gamble, lose.
The Myth: "But Other Consultants Do It Too?"
Success can never be guaranteed.
Yet, time and again, companies justify their expectations by claiming that other consultants work on a success-based fee. "But I know someone who does it this way!" I often hear. Or: "The other consultant only gets paid if the application is approved."
And this is exactly where the problem lies.
Because the real question is not whether someone works on a success basis, but who does—and why in most cases, it’s a red flag.
An excellent application maximizes chances, but it does not determine the outcome
Even the best lawyers lose cases. Even the best doctors have patients who do not survive. Expertise means quality—not magic.
There is no guarantee for funding because grant programs are often highly competitive. Applications compete with hundreds of others, and many external factors come into play: reviewer perspectives, political priorities, budget availability, and evaluation criteria. No one can control the outcome.
Why Some Consultants Work on a Success Basis – and Why They Are Often the Wrong Ones
Some consultants choose success-based models because their business structure prioritizes volume over individualized strategic planning. Others may offset the risks of failed applications by adjusting their pricing models across projects.
Success-based fee structures may incentivize consultants to focus on efficiency over in-depth strategic planning. - eM.
In some cases, success-based consulting models may create an incentive to prioritize the number of applications submitted rather than extensive individual strategic planning.
Why would they invest time in developing a detailed, well-thought-out strategy when they can instead submit 20 generic applications and hope that 1 or 2 of them get approved?
Clients who prioritize long-term strategic funding planning tend to achieve more sustainable project execution.
Another tough but necessary truth: If a company cannot afford professional grant consulting, it should ask itself whether it is truly ready for funding.
Grants are not free money. They require:
✔ Financial stability. Many programs require co-financing. If a company cannot afford the application process, how will it finance the project execution later?
✔ A clear strategy. Companies relying on success-based fees often just want to "test" whether they can get money—rather than incorporating grants as part of a long-term funding strategy.
✔ Seriousness. Investors and grant providers often seek applicants who demonstrate a strong strategic plan and the ability to manage funding effectively.
The truth is simple: A client who gambles is not a good client.
The Big Problem: Why Success-Based Fees Are Unfair
The Inevitable Reality Check for Scientific Founders
Young founders transitioning directly from academia to the business world often face a harsh reality: suddenly, nothing is free.
In the academic world, it is standard practice for knowledge to be shared openly. Research groups publish their findings for free, conferences encourage active exchange, and laboratories collaborate without invoicing every technical consultation. Many scientists are accustomed to their daily work being financed by public funds—whether through universities, third-party grants, or research projects.
However, behind this apparent cost-free environment lies a massive financial infrastructure.
Every experiment in the lab, every measurement, and every publication is made possible by funding structures that most scientists never have to think about. What are the actual costs of materials, lab time, equipment purchases, or patent applications? Who pays for them, and how sustainable is this system?
Once a scientist steps into the business world, the rules change drastically.In the industry, nothing is given away—everything is dictated by economic logic.
And this is where the first major reality check comes in:
If your own knowledge and technology have value—why shouldn’t the expertise of a consultant? - eM.
Those Who Value Their Own Expertise Should Expect the Same from Their Business Partners
Many founders move into the industry because they believe their know-how or technology has genuine economic value. They establish companies, develop products, and rightfully expect to be paid for their work.
But this same logic must apply to their business partners as well.
A good consultant knows their worth—just like a scientist who has spent years developing a groundbreaking innovation. If a consultant is willing to work solely on a success basis, it is not necessarily a sign of quality or confidence. More often, it suggests that they do not have enough trust in their own business model.
A Good Consultant Knows When Flexibility Is Justified—And When It’s Not
Of course, there are situations where it is reasonable for a consultant to accommodate a client. In certain areas, it may make strategic sense to offer models that share some level of risk.
But this is where the distinction lies:
✔ Excellent consultants know exactly how far they can be flexible—and when clear compensation is required.
✔ They understand the difference between calculable risk and pure gambling.
✔ And they avoid business models that ultimately compromise both their own quality and the quality of their client’s funding strategy.
However, there is a clear boundary:
💡 Flexibility is only possible when the consultant’s expertise is respected.
A company that values the expertise of a consultant is willing to find a fair model.But those who see grant consulting as a gamble, where the consultant should bear all the risk, fail to understand the importance of quality and strategy.
A consultant who knows their worth does not work with clients who gamble—only with those who invest in excellent consulting to achieve excellent results.
Do You Want to Be Part of This Strategy as a Client?
The real question is not just what a consultant costs, but how they work.
Does a company truly want to be the client of a consultant who relies on submitting as many mediocre applications as possible, hoping that some will succeed by sheer probability?
Or should they rather work with an expert who knows their own quality—and therefore prices their value accordingly?
A grant consultant who offers their services for free in a competitive funding program does so not because they are confident that every application will be approved. Some consultants balance risk by optimizing internal processes, which may not always align with the expectations of every client.
And this is the fundamental difference between a true expert and someone who finances their work through volume instead of quality.
Because in competitive grant programs, one thing is clear:
Success-based consulting models involve certain financial risks, which can influence the approach consultants take when managing applications. - eM.
The Reality: What Professional Grant Consulting Really Costs
A Good Consultant Is Not Just an "Application Writer" but a Strategic Partner
There is a widespread misconception that a grant consultant merely fills out forms and submits standardized applications. This assumption is not only incorrect—it is dangerous, especially for companies that rely on grants as a key component of their financing strategy.
A good consultant is not a paperwork processor. They are a strategic partner who deeply understands market opportunities, funding structures, and the optimal positioning of projects.
Those who seek top-tier expertise must be prepared to recognize and compensate its value. An exceptional grant consultant brings not only experience in application writing but also a profound understanding of funding architectures, negotiations with funding bodies, and the strategic integration of grants into long-term financial planning.
However, when it comes to research and development (R&D) projects, the level of complexity increases significantly.
Grant Consulting for Research & Development: Where Scientific Depth Meets Strategic Excellence
For R&D projects, it is not enough to simply explain a business idea clearly or present a coherent financial plan. A successful application must be scientifically and technologically compelling at the highest level.
This means:
✔ Profound Scientific Depth – A compelling R&D application requires technological and methodological excellence. Only someone with in-depth knowledge can present research in a way that is not only scientifically rigorous but also economically viable.
✔ Expertise in Highly Specialized Fields – Many grant applications operate in areas understood only by a small elite of scientific experts. From quantum computing and biotechnology to advanced materials science, crafting a winning application in these fields requires years of experience and technological foresight.
✔ Translating Complex Research into a Competitive Funding Strategy – It is not enough to understand the science. One must also speak the language of funding agencies and translate research results into a strategic, economically viable vision.
✔ The Intersection of Science & Business – A good consultant can not only argue scientifically but also articulate why a project is economically and societally significant.
This level of grant consulting requires a skill set that very few people possess.
That is the difference between a simple application and a high-caliber competitive funding strategy.
For a more in-depth discussion on this, we have written a detailed article: How Poor Grant Consulting Endangers the Entire System—And What We Can Do About It.
Top Consultants Do Not Work on Speculation
A grant application is not a mathematical equation with a guaranteed outcome. Grants are competitive, and even the best consultants cannot promise success with 100% certainty.
However, while the final outcome is uncertain, the value of professional consulting is undeniable.
A consultant cannot control how many competitors exist, which political priorities are currently in focus, or how strict the review committee will be. What they can do is maximize a project's chances—through well-researched strategies, excellent application writing, and solid financial planning.
That is why top consultants do not work on speculation.They know their work has value—not because they doubt their abilities, but because they understand their own worth.
Years of Experience & Knowledge vs. "Someone Who Just Fills Out Forms"
There is a world of difference between a true expert and a mere application writer.
A high-level grant consultant:
✔ Has years of experience in navigating complex funding structures.
✔ Understands the language of funding agencies and knows exactly what they are looking for.
✔ Develops a long-term financial strategy, instead of submitting just any application.
✔ Supports the client in negotiations and strategic positioning to ensure the best possible outcome.
A basic application writer, on the other hand:
❌ Fills out forms without developing a deep, customized strategy.
❌ Uses generic templates that do not stand out.
❌ Accepts any client, without evaluating the actual chances of success.
❌ Works based on volume over quality—leading to poor results.
A company that seeks funding should ask itself:Do I want the highest chance of success—or just an application?
The Reality: What Professional Grant Consulting Really Costs
Many companies underestimate the effort involved in a high-quality application. A grant application is not just a PDF file with some numbers and text—it is a highly strategic financial document that secures the future of a project.
A serious grant consulting process includes:
Program Analysis & Strategy – Identifying the best funding opportunities for the company
Financial Modeling & Budget Planning – Ensuring the project is financially sustainable.
Creating a Competitive Application – Structuring the narrative, technical details, and business case to maximize approval chances.
Negotiations with Funding Institutions – Addressing key concerns, optimizing the chances of approval.
Project Execution & Compliance Support – Helping with grant implementation and financial reporting.
And that comes at a price.
Quality Has Value – And Those Who Understand That Will Benefit in the Long Run
Companies that view grant consulting as just another cost item fail to see the real picture. It is not about spending money—it is about investing efficiently.
An exceptional consultant costs money because their work determines the difference between a successful application and a rejected one.
That is why:
Those who want the best consulting must be ready to invest in quality.
A consultant who does not recognize their own value will not generate real value for the client.
Grants are a competition—and in a competition, only the best strategy wins, not the cheapest solution.
What Professional Grant Consulting Really Costs
Grant Consulting Is More Than Just "Writing Applications"
Many companies see grant consulting as just another cost item—and completely overlook its true economic advantage. The real question is not whether you pay for professional application writing, but what you are actually paying for.
A complex grant application requires much more than simply filling out forms. Usually, multiple departments must collaborate to integrate technical, strategic, and financial aspects. Especially in research- and development-intensive projects, highly qualified professionals must interrupt their core work to deal with a complex process that is outside their main expertise.
This does not just consume time—it ties up valuable resources.
In-House or External Consultant? The Real Cost Comparison
Many companies assume that handling a grant application internally is cheaper.The reality is quite different.
The following breakdown—based on experience from over 100 projects—shows how an application process that seems “free” internally can actually cost significantly more than hiring an expert.
Disclaimer: These numbers are not absolute values, but serve to illustrate the real cost structure.
Role | Direct Costs (€) | Opportunity Costs (€) | Total Costs (€) |
Scientist | 2.429 | 4.857 | 7.286 |
Project Manager | 1.600 | 3.200 | 4.800 |
Financial Expert | 1.300 | 2.600 | 3.900 |
CEO / Executive | 1.714 | 3.429 | 5.143 |
Total | 7.043 | 14.086 | 21.129 |
Direct Costs: The actual payroll cost for the hours spent on the application, based on the salary of each involved employee.
Opportunity Costs: While working on the application, these employees are unable to perform their core duties—leading to delays in research, development, sales, or strategic planning.
❗ Real Total Cost of Internal Grant Application: ≈ €21,000
Cost of an External Consultant vs. Internal Costs:
Solution | Direct Costs (€) | Opportunity Costs (€) | Total Costs (€) |
Inhouse | 7.043 | 14.086 | 21.129 |
External Consultant | 5.000 - 10.000 | 0 | 5.000 - 10.000 |
The Clear Advantage of Hiring a Consultant
✔ An external consultant reduces real costs by more than 50%.
✔ Internal teams can focus on their core business instead of wasting time on an unfamiliar process.
✔ A professionally prepared application significantly increases the chances of approval and prevents costly delays caused by rejections or revisions.
Conclusion: Hiring a professional consultant is not an extra cost—it’s a strategic investment that saves money and maximizes funding success.
Why Choosing a Consultant Is a Strategic Investment
Working with an experienced grant consultant provides critical advantages:
✔ Faster Application Process – A consultant understands the processes, requirements, and common pitfalls, efficiently guiding the company through the application.
✔ Higher Success Rates – Grants are highly competitive. A professionally prepared application ensures a stronger position in the selection process.
✔ Minimized Internal Workload – Scientists, developers, and financial experts can focus on their core business rather than getting lost in bureaucratic complexities.
✔ Long-Term Knowledge Transfer – Working with a consultant helps companies develop a better understanding of grant structures and funding strategies over time.
Investing in Quality Instead of Expensive Trial-and-Error
Companies that see grant consulting as just another expense are making a fundamental mistake. The question is not whether an application costs money, but whether it is done efficiently, professionally, and with the highest chance of success.
A poorly structured application does not just cost money—it costs months of lost time if rejected.
Thus, the decision is simple:
Invest in a professionally prepared application to maximize your chances of success.
Avoid high opportunity costs and wasted internal resources.
Use grants strategically—not as a gamble.
A grant consultant saves time, money, and effort—allowing companies to focus on what truly matters: bringing their innovations to market successfully.
Those Who Want Quality Consulting Must Recognize Its Value
Grant Consulting Is Not a Gamble—It’s an Investment
Excellent consulting is not a cost burden—it is a strategic lever.
💡 "When you hire us, you are paying for our expertise, not buying a lottery ticket."
A grant application is not a game of chance. At Arise Innovations, we work analytically, strategically, and at the highest level—with the clear goal of positioning our clients for the best possible success in a competitive environment.
💡 "Success-based fees are an appealing concept for the client—but a financial disaster for the consultant."
Quality and excellence come from dedication, experience, and deep expertise—not from mass production and luck-based approaches.
That’s why we choose to work with companies that value their own expertise—and share the same appreciation for outstanding consulting.
Investing in Success vs. Short-Term Cost Cutting
💡 "If you cannot afford to invest in the application process, you probably cannot afford to implement the project either." - This statement is not an exclusion—it is an invitation to reflect.
A company that aims for long-term growth and wants to scale with public funding must recognize that sustainable financing is not achieved through minimal effort.
Grants are an opportunity, but they require planning, structure, and a solid financial strategy.
What Companies Should Do Instead:
Invest in quality rather than relying on chance.
Understand grants as part of a long-term strategy.
Partner with experts who fully commit to excellence—not consultants who prioritize quantity over quality.
Collaboration - at Fair Level
We look forward to working with companies that understand why excellent consulting is a key success factor.
We are excited to collaborate with those who recognize their own value as much as they acknowledge ours.
Because the best partnerships are built on passion, quality, and mutual respect.
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Maria & Arise Innovations Team
LinkedIn: Maria Ksenia Witte | Arise Innovations
Blog: Communications
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