Richard Wilson: when investors asked for the familiar fee structure

Richard recalled designing a fee arrangement he expected investors to welcome, then hearing that some preferred familiar terms.

He described the design effort

In discussing his short-term rental platform, Richard recalled trying to make compensation depend on investor results. He then described receiving mixed responses to that design.

Familiarity affected the conversation

Some investors, he said, wanted the normal structure. The account shows that the designer's expectation and an investor's response could differ. Richard described this feedback as part of his continuing experimentation with terms.

In Richard C. Wilson's words

"people are just used to seeing a certain thing" (Richard C. Wilson, recorded Rainmaker Series module)

How to use this

Ask which term a reviewer finds difficult to interpret.
Record actual reactions separately from the design team's expectations.

Questions and answers

What surprised Richard?

Some investors asked for familiar terms despite his effort to make compensation performance based.