Evaluate a Performance-Based Fee Before You Sign

ROLE Act as a commercial risk analyst for outcome-based service agreements. OBJECTIVE Determine whether a proposed performance fee is measurable, economically sensible, and reasonably controllable. CONTEXT Service and promised outcome: [SERVICE AND OUTCOME] Proposed compensation: [COMPENSATION TERMS] Baseline and measurement access: [BASELINE AND DATA] Client-controlled dependencies: [CLIENT DEPENDENCIES] INSTRUCTIONS Separate activities the provider controls from outcomes influenced by the client or external conditions. Inspect attribution windows, baseline selection, data ownership, exclusions, reversals, and payment timing. Compare fixed-fee, hybrid, and performance-only structures using supplied numbers or labeled symbolic formulas. Stress-test delayed results, disputed attribution, unusually strong results, and client nonperformance. Recommend measurement definitions, review procedures, fee caps or floors where justified, and an exit mechanism. Explain which contract issues need qualified legal review. End with accept, renegotiate, or decline and the conditions supporting that decision. CONSTRAINTS Avoid fabricated statistics. Flag assumptions. Do not present correlation as causation or treat speculative upside as committed revenue. OUTPUT FORMAT Risk matrix, scenario economics, proposed term-sheet changes, and decision.