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How I went from programming to consulting (2012)

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Re: How I went from programming to consulting (2012)

#221
post #198
post #17

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…

> Step 1: Be popular/famous enough that people know your name. Step 2: Be good/accurate enough at opining in ways that make sense. Neither of these are prerequisites for being extremely successful at consulting. My consulting rates are now approximately $10,000/week with a 70% annual utilization rate. I'm not industry famous at all. I also do not maintain a blog or do "content marketing." For a while I had no website…

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Re: How I went from programming to consulting (2012)

#222
post #187
post #168

Earlier quoted context omitted.

>>Not at first, no, but even Patrick had to start at zero, right? More or less everybody starts at 0. I don't exactly mean 0 as absolute nothingness, but some a low enough value of opportunity possible. That's the seed available to you, and from there you have to bootstrap. Of course not every one will make it big in this game. But a sure shot way of going failing, is to not try.

Are you a consultant?

I actually am, and I'm a Hacker News nobody that is 100% solo, including all of my sales.

I started in mid-2012 after being fed up with every employer out there, but was well aware that I was one of the best people someone could hire for things that are necessary, but not glamorous -- database performance tuning, data warehousing, ETL process development, and cleaning up disasters. Yet getting market rate for salary as a senior dev was like pulling teeth. At the time I was gritting my teeth to collect a paycheck. I got fed up with it, quit after managing to line up an engagement (and getting contracts drawn up), and struck out on my own.

In 5 1/2 years I've averaged 42 hours of billing a year, with the big gap mostly being because I decided to take 6 months off in 2016. I started hourly, but I learned exactly what Patrick learned and switched to weekly for the bulk of my engagements (which are short term), with a more amenable rate for long-term projects (we're talking 6+ month with many small projects, or one huge one). Most of it has been putting out fires to save a director's or VP's job, which gets you solid recommendations from said directors and VPs when servers go from on fire to twiddling their thumbs being nearly idle. Though I've built data warehouses and the teams to manage them as well.

There is a lot of selling. I'm either sourcing or making a ton of calls or emails every week, which isn't easy for someone that doesn't like to toot their horn. However, working remote affords me the ability to do that, as well as work with anyone in the US. If a local client wants me on site (preventing me from doing sales) there's a heck of rate increase for that, which causes most to let me work off site, though a few bite and the bump more than covers my opportunity cost.

There's also a bit of contingency recruiting. Employees take note when you turn a disaster into boring, easy to manage calm. More so when you teach them what you know. Keep in touch, and when you see the writing on the wall, perhaps your current client is what both of them needs. After all, you're already an approved vendor, so might as well make things even better for your client (and the top-notch candidate) and stick another $40-50K in your pocket for your trouble.

From when I started I TRIPLED what I was making (and am not in a cheap market), and making more than senior AmaGooFaceSoft devs in the Valley (incl. options and benefits) despite living nowhere near Califonia. Yet I'm still some nobody that's been on Hacker News since mid-2009 that just does fairly boring database things. Though there's a ton of database work out there.

Re: How I went from programming to consulting (2012)

#223
post #17

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…

IMO it's a mistake to focus on his particular fees, that's what he managed to make for himself. You need to find your own realistic path. For instance I, living outside of US, will probably never be able to charge $100+ hour my clients, I'm fully aware of that. But no matter who you are, you probably still can push for a little bit more, and that's where Patrick's advices are solid. Often, it's just a matter of askin…

If you're in Europe and a programming consultant, you can (and should) charge usd100 and more. Like, double, or triple.

Edit: actually, first thing you need to do is stop charging by the hour, and charge by the day, or better, by the week.

Re: How I went from programming to consulting (2012)

#224
post #17

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…

"popular/famous" seems to imply these are those unfair forces of the universe that bless others but not me. Rather, #1 comes out of #2 and being proactive in your career. Patrick was active here, knew what he was talking about, and that developed into a reputation where he'd be in a position to have conversations like the story suggested.

Re: How I went from programming to consulting (2012)

#225

Earlier quoted context omitted.

that's a management consultant, and the reason they're hired is to provide cover and credibility for both management and your technology team. i.e., "the expensive consultant said it was okay, so don't fire anyone in management, or our technology team, if it goes sideways." in other words, they're actually helping you do your job because they can compare your recommendation to other companies and teams in the industr…

The issue you're overlooking is that these management consultants are being paid large fees for information that a company can get for free just by listening to their existing employees. However, that's not a slight on the management consultants themselves (nice work if you can get it), but is a slight on companies that don't trust that their employees can give them sound advice. Problems at the ground level are goin…

How do the companies know that they can trust their employees?

Re: How I went from programming to consulting (2012)

#226
post #182

Earlier quoted context omitted.

I've learned to always keep such logs, in some gigs even down to minutes. They can come really handy if the fire brigade comes in when invoices start getting discussed.

Some projects I do want some product I don't. If I think at the very beginning that I have to do that, I'm already thinking I'm in a potentially bad/adversarial project.

Always good to keep notes on things like this (noted at the time each issue appears).

Always better that they never have to be formally given to the customer.

Re: How I went from programming to consulting (2012)

#228
post #198
post #17

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…

> Step 1: Be popular/famous enough that people know your name. Step 2: Be good/accurate enough at opining in ways that make sense. Neither of these are prerequisites for being extremely successful at consulting. My consulting rates are now approximately $10,000/week with a 70% annual utilization rate. I'm not industry famous at all. I also do not maintain a blog or do "content marketing." For a while I had no website…

That's a nice rate.

Mind sharing how many weeks you work a year? Ie, is there enough demand you can work in the upper 40's, leaving enough vacation time?

Re: How I went from programming to consulting (2012)

#229
post #84

One of the problems I've always had with patio11's advice is that the skills he brought to a job was something that could easily be measured, e.g. he mainly did sales funnel optimization so it was easy to see the before and after of the direct impact on the bottom line. As somebody who is a skilled backend developer the value I provide is not as measurable. How can I justify charging a large weekly rate, when almost…

Can you affect the number and size of AWS instances that a company needs? As Patrick said on twitter the other day. If you can optimize the use of AWS for a company that has 3k instances, you can make the company boatloads of money in reduced server cost.

Re: How I went from programming to consulting (2012)

#230
post #169
post #157

Earlier quoted context omitted.

It's very doable to find remote consulting/freelance work. I'm in a region of Canada where the goal freelance/consulting rates for software engineers are well below $100/hour, and I could regularly find remote consulting work in the US around the $100/hour mark .

Are you consulting on one project at a time, or multiple?

Currently, I'm employed FT. When I was consulting, typically multiple projects. It's necessary (IME) to do so to guarantee you have a steady flow of work. I'd always be looking for a new project midway through the current one.
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