An expert network business model operates by linking companies with experts in their industry to offer specialized knowledge to make decisions.
The network serves as an intermediary, first determining the client’s specific needs, then finding and vetting experts from its database, and finally facilitating the engagement through various services such as consultations, calls, or project-based work. The expert network business is paid by the clients for such services, and experts gain compensation for their time.
Understanding Expert Networks
An expert network is a business-oriented network where people with specific knowledge, insight, or experience in different aspects of the industry are connected to client companies that are interested in gaining access to this knowledge. These networks have become essential resources for decision-making, venture capitalists, startups, and small to medium-sized businesses to gain competitive advantages through specialized insights.
The expert network business industry has grown extraordinarily over the past year 2022, with over $2.1 billion in revenue generated with 120+ companies in place all across the globe. This remarkable growth is due to the growing need for on-demand expertise in many sectors, ranging from technology and healthcare to finance and energy.
How the Business Model Works
The expert network business model is carried out via a systematic process that guarantees quality connections between clients and experts:
- Client needs identification: A client company (such as an investment firm or corporation) comes to the expert network with a specific question or problem.
- Expert sourcing and vetting: The network taps its database of professionals to source individuals with the exact kind of expertise required, determined by factors such as industry experience, knowledge, and availability.
- Client-expert connection: The network helps establish the connection by structuring the connection, which can involve many tasks, including consultations, calls, or working on a project.
- Expert compensation: Experts are paid for what they give their time, and compensation often varies depending on the seniority or specialization.
Platforms such as Nexus Expert Research are a prime example of how expert networks of the future streamline this entire process while providing businesses with a seamless connection between various industry experts.
Revenue Generation Models
The most common revenue model is the transaction-based ‘pay per use,’ wherein an expert network bills the client on an hourly basis for expert consultation on a multiplicative basis for the credit price of that expert. The network then credits this expert a fraction of this fee as a reward and keeps the remainder as profit.
| Revenue Model | Description | Best For |
| Transaction-Based | Pay-per-use model where clients are invoiced per hour of expert consultation | Companies with occasional consulting needs |
| Subscription-Based | Clients pay for predefined “credits” at contract start, used for consultations throughout the year | Firms requiring frequent expert access |
Subscription-based models still make up a significant portion of the industry, especially for established networks. In this model, clients buy a predetermined number of credits at the beginning of their contract year, which are used up as expert consultations take place.
Key Services Offered
- Consultations: Probably the most common consulting service, in which a client is put in touch with an expert for a one-on-one phone call or meeting to discuss a specific topic.
- Market research: Some networks offer full-stage market research, calculating data and insights within a pool of experts to give in-depth reports and forecasts.
- Project-based work: Expert networks may also provide staff for projects that require a higher level of involvement, such as structuring market analyses and developing strategies.
- Compliance: The network ensures that these interactions are compliant with all the relevant regulations.
Pricing Structure
Expert network rates are usually higher than direct booking rates due to additional value services such as specialist vetting and matching, compliance checks, and administrative support. Nearly 78% of advisors charge $600 or less per hour, and about 30% charge anything from $100 to $200.
| Expert Level | Typical Hourly Rate | Client Segment |
| Entry-Level Experts | $100 – $200 | Startups and small businesses |
| Mid-Level Professionals | $300 – $600 | Medium-sized enterprises |
| Senior Specialists | $600 – $800 | Private equity and VCs |
| C-Suite Executives | $1,400+ | Large corporations and funds |
Nexus Expert Research and others have good pricing models to balance quality expertise with cost-effectiveness for the intended markets they serve.
Role in Strategic Decision Making
For decision-makers and VCs, there are critical advantages in using expert network business models. Investment firms use these networks as a part of their due diligence process; they consult with industry professionals to validate research results, check market conditions, and identify potential risks before making investment decisions.
The availability of information about specialized knowledge can enhance the speed at which companies reach their decisions, minimizing risks while maximizing returns on investment. Many top fund managers now use expert networks to inform their business strategies: expert consultations have become almost obligatory for competitive advantage.
Technology and Innovation
The modern model of expert network business models increasingly incorporates technology in an attempt to improve efficiency. AI-based expert matching, predictive analytics, and automation tools enhance the precision of connections between clients and experts. Advanced platforms provide efficient scheduling, communication, and documentation for engagements using user-friendly digital interfaces.
As the industry is still evolving, expert networks are no longer confined to one-off consultations but are working to provide more comprehensive industry insights, research reports, and expert-led discussions to build an ecosystem of more transparent and efficient knowledge.
Transform your business strategy with expert knowledge at your fingertips. Get started with Nexus Expert Research and gain the competitive edge your organization deserves.
