What is a paid diagnostic?

A short, fixed-fee assessment that identifies the real problem and ends with a written recommendation. It is used instead of a free proposal or demo to start an engagement.

How much should I charge for a diagnostic?

Price it based on the time and expertise involved and the value of the problem, at a level that signals seriousness. Avoid the very low prices that make it look like a lead magnet.

Should I credit the diagnostic fee against the full project?

It is optional. Crediting can make it easier for clients to proceed, but you can keep it separate if the diagnostic stands alone as valuable work.

How long should a diagnostic take?

Most last between two and ten working days, depending on the complexity of the question. Keep it short enough to hold the client's momentum and long enough to produce reliable findings and a written recommendation.

What if the client refuses to pay for a diagnostic?

Explain why you keep it paid, offer a smaller scope at a lower fee, or refer them elsewhere. A client who will not pay for a first step is unlikely to value a larger engagement, so it may be better to decline.

Sell a Paid Diagnostic Instead of a Free Proposal or Demo

By Narkisho Nyonje, author of The Demo Is Dead · 29 September 2026 · 8 min read

The idea

Instead of spending unpaid days writing a proposal or building a demo, you sell the first step: a defined piece of investigation. The client pays a modest, fixed fee and receives a written diagnosis and plan. If they proceed with you, the diagnostic fee can be credited or the project is easier to scope. If not, they still leave with something valuable, and you have been paid.

This is the natural answer to why free work backfires.

What a good diagnostic includes

A clear question: "Why are late deliveries increasing, and what should we fix first?"
A fixed scope and time: for example, five working days or fifteen hours of work.
Activities: interviews, review of data or systems, observation of the process.
A written deliverable: the findings, your recommendation, the cost of the problem, the options with your preferred one, and a rough plan.
A readout meeting with the decision-maker.

How to price it

Pricing logic, not a formula:

Estimate your time honestly, including analysis and writing.
Price at a level that signals seriousness. Very cheap diagnostics attract the wrong signal.
Consider the value of the problem to the client. Diagnostics are often a small fraction of the eventual project.
Decide whether you will credit part of it against the full project. Crediting can make the decision easier.

Avoid discounting it. If a diagnostic is discounted, you are back to free work in a different shape.

Selling it: a short script

"Based on what you've told me, I don't think a proposal is the right next step, because I'd be guessing about the cause. What I'd suggest is a short diagnostic. Over one week I'd look at [what], talk to [who], and give you a written recommendation and plan. It's [fee]. If you decide to go ahead with me afterwards, [credit]. If not, you'll still have a clear picture and can use it with anyone."

Use this at the end of a diagnostic-first sales call.

Handling objections

"Can't you just send a proposal?" "I can, but it would be generic. The diagnostic makes the proposal specific and reduces your risk of buying the wrong thing."
"Can you do it free?" "I keep the diagnostic paid so that I can give it full attention. That is also why the recommendation is reliable."
"Other people do it free." "They may. What I offer is a real analysis. Some clients prefer to pay for it, others prefer a proposal without one."

What makes it work

Use discovery questions that set up the scope. See discovery questions for consultants.
Give real findings, not filler. This is where AI-only competitors fall short.
Present the cost of the problem in the client's numbers.
Put your recommendation in writing, showing accountability.

The business effect

Diagnostics make your pipeline healthier: fewer unpaid pitches, more serious buyers, larger projects that are properly scoped and a stance that supports higher prices. See how to stop competing on price. It is also a natural product for a first client: how to get your first consulting client.

Take the free Vendor-or-Authority Audit to see whether free work is a pattern in your practice.

A ready-to-use diagnostic template

Here is a structure you can adapt to almost any type of advisory work. Copy it into a one-page document and fill in the brackets.

Diagnostic: [Client name]

The question we are answering: [For example: why are late deliveries increasing, and what should be fixed first?]

What I will do: 1. Interview [number] people: [roles]. 2. Review [data, documents, systems]. 3. Observe [process] for [time]. 4. Analyse the findings and test [hypotheses].

What you will receive: - A written report of [number] pages covering: what is happening, why, what it costs, options and my recommendation. - A readout meeting with [decision-makers], [duration]. - A prioritised ninety-day plan.

What I need from you: - Access to [people, data] by [date]. - A named contact who can make decisions. - Payment of [fee] before the work begins, or [split].

Timeline: [number] working days from kickoff, readout on [date].

What is not included: implementation, ongoing support and anything outside the question above. If you proceed with me afterwards, [credit terms].

Confidentiality: [statement].

Short documents like this help both sides. They prevent scope creep and make it easier for the client to approve internally.

Examples in different fields

Software or systems consultant

Question: "Which of our five internal tools should we keep, replace or retire?" Activities: interview staff, review usage data, map integrations. Deliverable: a decision matrix and a migration plan.

Marketing or agency work

Question: "Why do visitors not become enquiries?" Activities: review analytics, test the enquiry path, interview recent customers. Deliverable: a prioritised list of fixes with expected impact.

Coach or trainer

Question: "Where is the team's sales conversation breaking down?" Activities: listen to recorded calls, observe two meetings, interview managers. Deliverable: a short report and a training design that targets the gaps.

Operations or logistics

Question: "What causes late deliveries and what would reduce them fastest?" Activities: trace fifty recent deliveries, interview dispatchers and drivers. Deliverable: a root-cause map and three quick wins.

Finance or compliance

Question: "Where are we exposed against the new requirements?" Activities: document review, gap analysis, interviews. Deliverable: a risk register and a compliance roadmap.

Each follows the same pattern: a clear question, defined activities, a written result and a decision meeting.

Pricing diagnostics at different levels

There is no universal fee. Base yours on time, value and market. Here are three common approaches:

Approach	How it works	When to use
Time-based	Estimate hours and multiply by your rate	Simple scope; early in your practice
Value-anchored	Set a fee as a modest share of the problem's cost	When the client can size the problem
Package	A fixed offer with a fixed fee	When you repeat the same diagnostic

If you are unsure, start with the time-based estimate, then check that the fee is reasonable relative to the value of the problem. Adjust upwards as your evidence and demand grow.

What to do if the diagnostic finds you are not needed

Sometimes the diagnosis shows that the client's problem can be solved internally or by someone else. Report it honestly. You lose a larger project, but you gain a client who trusts you completely and refers others. Honesty is one of the strongest forms of proof. You will also learn quickly where the diagnostic rarely leads to work, which helps you refine who you target.

Turning the diagnostic into the larger project

The readout meeting is the natural point to propose next steps. To make it flow:

Share the findings in plain language, with evidence.
Present one recommended path, with options for scope.
State the cost and expected result based on the client's numbers.
Propose a start date and put it in the calendar.
Agree who will decide, and by when.
Send the written summary within a day.

Conversion is higher when the decision-maker attends the readout, so make that a condition at the start. If the client hesitates, ask what would make a decision easier, then address it. See how to respond when a client says you are too expensive for handling objections.

Common mistakes with diagnostics

Underpricing it. A token fee attracts tyre-kickers and makes the work feel unimportant.
Vague scope. Without a clear question and deliverable, the diagnostic becomes open-ended consulting.
Skipping the readout. The report alone is rarely enough. The conversation drives the decision.
Giving too much away. Deliver real findings, but keep the detailed implementation for the next phase.
Making it too long. Two to ten working days is usually right. Longer, and the client loses momentum.
Not asking for a decision. End the readout with a clear next step.

Making diagnostics part of your growth system

A paid diagnostic can be the centre of a consistent sales system.

Attract: publish notes, ask for referrals, run the free 3-minute audit so people see their own position.
Qualify: use a discovery conversation to decide who needs a diagnostic. See discovery questions for consultants.
Sell the diagnostic: offer it at the end of a diagnostic-first sales call.
Deliver and convert: hold a readout and propose the larger work.
Refer: ask for introductions at the ninety-day mark.

If you would like a full set of tools that support each step, from the audit to the sales call to referral scripts, the book follows the same sequence. To see why replacing free work is so important, read should consultants work for free.