Rent-seeking
I am sitting in an airport having just left a 'wrap-up' meeting at the conclusion of a very successful project. The client was effusive and immediately looking for new areas where we can work together. The problem is that the two projects where they next need external help don't match my skill set. I have three choices: -
- Take on a project and convince myself that I'll learn quickly enough to deliver what they need
- Take on a project and find a 3rd-Party supplier who will deliver the work to the client but on my behalf
- Explain that their needs fall outside of my competencies and decline the work
As tempting as the alternatives are I chose option 3. My personal brand is too valuable for me to try and improvise my way through a major project (option 1.)
It is option 2. that I want to explore here. If I really have my client's best interests at heart then I will either say nothing at all or I'll put him in touch with the right people and then get out of the way (which is what I did).
Still the temptation to manipulate proceedings so that everything goes through me is strong; if I bring buyers and sellers together then why shouldn't I get a piece of the action? This is what agents do for a living right? Essentially it's a version of what David Ricardo described as rent-seeking: -
The extraction of uncompensated value from others without making any contribution to productivity
I am not saying that this is a bad thing per se, it just doesn't fit my business model. I am no good at turning up to meetings where I don't have a specific role, which is what agents essentially do. Also, I want my value proposition to be based on what I know rather than who. Finally, it would place my reputation for quality entirely in the hands of others.
Some would say that I'm possibly 'leaving money on the table' but at least I know my personal brand is protected and that is worth a lot more to me in the longer term.