When considering outsourced R&D funding support, it’s essential to understand the different fee structures that are available to you. Each model offers unique advantages depending on the level of support needed and the scope of your funding goals.
In this article we’ll take a look at the most common fee models, explaining how they work and when they might work best.
Retainer Agreements
A retainer agreement is ideal for businesses seeking long-term, strategic support for their R&D funding activities. This model provides consistent access to expert advice and management, enabling a more holistic approach to funding.
If you’re looking for ongoing support beyond a one-off R&D grant application, this approach enables efficient mixing and matching of funds to your R&D projects. You tell us how many hours or days per month you need and we can mutually agree the best use of our time to maximise your R&D funding success with clear timelines, identified target funds and well-defined outputs.
This approach is particularly useful for developing a funding roadmap, identifying target grants, and ensuring applications align with broader R&D objectives.
Project Fees
For short-term or specific funding needs, project-based fees are a common choice. This model works well for one to three R&D grant applications and typically involves structured payment milestones – usually part upfront, part halfway and part after successful submission of an application.
The fee is determined by the complexity and effort required to create a compelling application, which can vary depending on the funding source and the quality of the materials provided.
We will always make sure that our project fee is in a sensible ratio to the amount of funding you are seeking to secure. If desired, we can offer a reduced project fee in combination with a success fee (see below).
Success Fees
Success fee structures link payment to the outcome of a funding application. Typically calculated as a percentage of the secured grant or loan, this model aligns incentives but often comes with an upfront fee to ensure mutual engagement.
While success fees can be appealing, they usually complement other fee structures rather than standing alone, as successful applications require active collaboration between the applicant and the consultant.
We can offer a success fee element to our fees that is contingent on successful award of funding. However, please be aware that we do not offer our services based on success only. In our experience we have found that the most successful R&D funding applications need engagement from both the applicant (you) and the service provider (us) as this forms a better foundation for a positive and productive working relationship.
Ad-hoc Support
Ad-hoc arrangements offer maximum flexibility for businesses managing their own R&D funding applications but needing occasional expert input. This model typically involves purchasing a set number of support hours upfront, which can be used as needed.
We offer 10 hours of support as a package which we bill at the start of our engagement. This time can be used flexibly depending on your needs.
Choosing the Right Model
The best fee model depends on the scope and nature of your R&D funding needs. For ongoing strategic support, a retainer might be the most effective option. If you have a specific project in mind, a project-based fee may be more appropriate. For those managing their own applications but seeking guidance, ad-hoc support offers a flexible solution.
Understanding these fee models can help businesses make informed decisions about how to approach R&D funding, ensuring both efficiency and the best chance of success. For any questions regarding fee models, please get in touch.
Alex Chalkley
I have over 20 years experience in founding and scaling businesses, mainly focused on the non-dilutive funding sector. Since 2008, I have built, trained and mentored teams to successfully draw down over €100m in non-dilutive funding from the UK and EU for clients spanning multiple sectors.
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