Money for Nothing, Intellectual Property for Free

A while back, I was invited to help a couple of organizations expand their respective businesses overseas. One company is a small manufacturing company, the other a large service provider with an international presence. 


In describing their needs, both companies are confident that there is a need for their respective products and services, and quite frankly, I believe that both companies could successfully launch a successful initiative to grow their overseas revenue stream. 


For both companies, there is just one issue...... money.


At its most basic, consultants like myself trade intellectual capital, often acquired over a long time and substantial expense, for money. This seems like a fair trade. You pay me, and  I'll share my IP with you. We both walk away happy, feeling that the agreement executed was mutually beneficial. 


Unfortunately, many consultants often find themselves in a position of having intellectual capital without a buyer, or a buyer without money. This forces a decision: trade the IP for future potential gain or walk away until the buyer is in a better financial position.


I have had some success structuring agreements that requires the client to pay a relatively small, one time retainer from which services are drawn on an hourly basis. I have also, I am sad to admit, had clients sell me their vision of future gains (more on that another time).


To me, the issue really boils down to this: If the client has skin in the game, they are more likely to appreciate the very fact that someone else's intellectual property has value, and for a consultant there is nothing more important.


What are your thoughts on this matter?