41–50 of 495 posts
This post seems to discount his experience over eight years. $X0,000 seems to suggest it's on the lower end, so that's like a 3x salary bump. I would hope over eight years of work you'd get better at your job... So, what's the real impact of switching to per week billing? My guess is that this post is overselling it.
I have an Internet buddy in Chicago named Thomas Ptacek. [...] I decided to invite Thomas out to coffee. At the end of the conversation, Thomas said something which, no exaggeration, changed my life. Thomas: Some food for thought: If this hadn't been a coffee date, but rather a consulting engagement, I'd be writing you a check right now. Me: Three hours at $100 an hour or whatever an intermediate programmer is worth…
For those saying this doesn't happen any more... it still can, and does. However, the bigger issue most people face is finding those people who can actually get that sort of value from our knowledge/skills/etc. I can give the same info to 2 companies, and one can make several hundred thousand dollars (in savings, new sales, etc). The other may not even be operating at a scale where they'll see $10k in increased value…
"Okay, we signed a one month consulting engagement, starting Tuesday." Consultant(s) show up on Tuesday, no db's or credentials have been set up, everyone seems surprised they're there.
It consistently amazed me how much consultant time companies waste. When if all of this had been ready, I could have delivered much more value by the end date.
And then same problem with actually using any work produced.
I'd estimate the effective-ineffective customer split is somewhere around 30-70.
Step 1: Be popular/famous enough that people know your name. Step 2: Be good/accurate enough at opining in ways that make sense. Most people won't have either 1 or 2 going for them. There's one more thing - charging a lot is how to signal value, which is a a huge thing. I know a guy who used to manage an A-list rock band (everyone knows their songs) who went into consulting, and started out lowballing people, for $1k…
I had the same as freelance programmer. The higher the rate, the more respect I got and work actually became easier.
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You have to be able to size up their market, their company, some idea of sales/volume/revenue/etc. Sometimes it's easy to ballpark, perhaps based on headcount (even assuming part time workers, you could probably ballpark $50k per person - a 50 person company would be grossing ~$3m/year just to stay open in the US, I'd think, but in most cases it would probably be 50-100% more than that, depending on industry, locatio…
Cool thanks. My first client told me their sales is mid hundred millions CAD. And they are expanding into other industries that require my skills. So in all likelihood their revenue will go up. I guess I was lucky by finding them without screening them. I will keep an eye for that in the future, thanks.
Can someone explain to me why when paying weekly people would not turn the discussion on slashing the rate in contrast to paying hourly? I don't see the disconnect between the two and why it shouldn't be possible to also go "My rate is 100$, we need 40 hours, you can only pay 30, okay, what do we slash?" In fact, that is what I am doing right now.
If you charge $10,000 / week, and the client wants to negotiate, they'd have to argue to remove $1000 / week for an equivalent change in revenue, which is much different psychologically.
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Do you know this from first hand experience? I used to know a guy who made around $5000 a day. His main skill seemed to be that he had the ability to talk to CEOs in their own language. Once you are on that level a $50000 consulting engagement is not much money.
What does talk to a CEO in their own language even mean? That he knows typical MBA jargon and concepts? Anybody can learn to talk and think like a CEO by picking up a few DIY MBA books. You have likely misjudged his actual skill.
And... while much of it's been said before... if you call yourself a programmer, very likely you won't be at the table when decisions about marketing are made in the first place. Might even be on the page linked above, but one of patio11's big suggestions is not to call yourself a programmer. I probably still use the label for myself in some situations, but often when coming in to new consulting projects (solo or with someone else), I'll say something technical, then answer some questions, and I usually get "you don't look like a programmer" or "you don't sound like a programmer", in a 'disbelief' sort of tone.
As trivial as it sounds (and it's not, it took years of fighting the 'jump to tech' habit/comfortzone), talking to people about 'the project' at a business/operations/value level is where to start out. "How does it work now? What are you trying to do? Where are the pain points?" etc. Being able to jump down in to the technical weeds when appropriate is a huge bonus - you can talk to their technical staff as well as the rest of the staff and be a bridge.
Was doing some work for a company with a main office and mobile workers (mobile folks are out in trucks doing outdoors work - delivering, planting, landscaping, etc). Each dept head knows their stuff, but I was actually a bit surprised that one of the core office staff - been there more than 10 years, and is the main point of contact for the field workers - had never been to their loading dock to see how they worked. (the dock was, for years, about 1000 feet from her office). As I'm asking questions and trying to determine best approaches for some rework, there was almost no one outside of the owners and one other person who'd actually been to all parts of the company. I went out in the truck with one of the field guys for a few hours... but I'm also a "programmer"... this was revolutionary for them (no one who'd pitched solutions to them had ever been in the field before).
If you want to be treated like a programmer, call yourself a programmer and behave like one. If you want to be able to give more value to a company/client, do more than a programmer would. But... it's hard to do that in most companies as an insider - you're tasked with XYZ, and your intruding on others' territories when you poke around too much (that was my trouble when working at traditional companies). I want/need to know how the whole thing works, but info sharing is sometimes the only way some people can exert control over their areas.
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Thanks for asking. To be reductive: I mostly build webapps for my clients, but of course it's a lot more than just that. I got into it quite intentionally because I wanted to trade lower variance for higher pay and flexible lifestyle. That is, I'd rather make $3x one month and $0x the next (where I work on my personal projects or read a good scifi novel in the sun), rather than $x one month and $x the next. When I st…
What is the most painful aspect of consulting for you?
After having done this for a long time, I've learned to be zen about the intrinsic variance in income. But it is still hard psychologically. While rationally I know that I make more per year as a consultant and have more interesting work as a result etc, it's still painful to see the numbers in the spreadsheet go down when I'm not working for a few months, even if it was a deliberate decision that I made.
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For those saying this doesn't happen any more... it still can, and does. However, the bigger issue most people face is finding those people who can actually get that sort of value from our knowledge/skills/etc. I can give the same info to 2 companies, and one can make several hundred thousand dollars (in savings, new sales, etc). The other may not even be operating at a scale where they'll see $10k in increased value…
The weird thing with consulting (in my experience) is that a customer almost never knows how capable they are of effectively using a consultant's time and output. "Okay, we signed a one month consulting engagement, starting Tuesday." Consultant(s) show up on Tuesday, no db's or credentials have been set up, everyone seems surprised they're there. It consistently amazed me how much consultant time companies waste. Whe…