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How I went from $100-an-hour programming to $X0,000-a-week consulting

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101–110 of 270 posts

Re: How I went from $100-an-hour programming to $X0,000-a-week consulting

#101
post #93

Reading this ... man, I'm not even at $100/hour programming yet.

I started freelancing out of college. Took a job, raised my prices, took a job, raised prices, etc. until I felt friction in the market.

Then, I got hired by one of my clients and asked to find someone to fill my former shoes as a freelancer.

I was charging $90 an hour. They were relying on firms like the Creative Group who have the ability to charge 100% markup on the people they hire out. As a result, I realized the people I was competing with at that rate could barely tie their own shoes.

I decided in that moment that I was pricing myself into the wrong league and need to raise my prices considerably if I ever get back into freelancing. Thanks to this post, I'll be billing by the week. =)

On a related note, there's room for massive disruption in the contract labor space. It's not hard to come up with a service that provides a lot more value within the current economics of that market. I'm not sure contract labor is a business I'm passionate enough about to start, but if anyone wants that have a chat about it, let me know.

Re: How I went from $100-an-hour programming to $X0,000-a-week consulting

#102
post #93

Reading this ... man, I'm not even at $100/hour programming yet.

I started freelancing out of college. Took a job, raised my prices, took a job, raised prices, etc. until I felt friction in the market. Then, I got hired by one of my clients and asked to find someone to fill my former shoes as a freelancer. I was charging $90 an hour. They were relying on firms like the Creative Group who have the ability to charge 100% markup on the people they hire out. As a result, I realized th…

Well I'm out of college since 2 months ago. Going from there :)

I'm at the point where I'm feeling the first friction in the market; still figuring out what type of lube it needs.

(big part of the problem might be the market itself, I'm focusing on working with startups)

Re: How I went from $100-an-hour programming to $X0,000-a-week consulting

#103
post #55
post #18

Earlier quoted context omitted.

Get a blog and start making new business acquaintances. (Being in the Valley should not exactly have you hurting for options on that score.)

And what about those who not even in US and belong to a "3rd world country" where one wish to give work only because it's Cheap?

You are aware that patio11 established his reputation while living in Ogaki, Gifu, Japan? Which is a small, centrally located city in Japan, without a significant tech presence that I am aware of.

OK, it isn't a third world country. And Patrick is an American. But still, with the Internet you don't have to physically live in a well-connected place to make connections.

Re: How I went from $100-an-hour programming to $X0,000-a-week consulting

#104
post #93

Reading this ... man, I'm not even at $100/hour programming yet.

It really is just a matter of charging more. Don't take more work for less than $n an hour. Grandfather older clients in if you want, or don't if they're not the type of client you'd want to work with long term.

As Patrick said in the article, there's no secret to charging more, except charging more.

I have a full time job and have intentionally priced myself so that I only have one or two side jobs at any one time ($125/hr for PHP). I am also not actively seeking any work, the last couple jobs have been from existing clients or new ones that have former clients working there now. Given my experience with intentionally raising prices 30%+ across the board and taking 50 hours/week off the table, I have little doubt there's practically a line out Patrick's door with CEOs holding $10-50k checks in their hands.

Re: How I went from $100-an-hour programming to $X0,000-a-week consulting

#105

Damn, that sounds nice. I wonder if system admin/architecture can be modeled that way. I'd love to bill even a modest $2k/week, rather than trawl craigslist, responding to posts for "unix/linux ninjas" then having shops balk at anything over $20 an hour. I don't know how many messes I've cleaned up (likely left by people charging a hell of a lot more than me) for really low rates. I know, I know. Craiglist and other…

I found a great sysadmin on Craigslist ... I now pay a $600/mo retainer to have him on call up to 10 hours/month. I usually don't use all the hours, but sometimes I go over and pay more. The situation works great for both of us. I don't think Patrick's model is ideal for sysadmin work (who needs a sysadmin for an entire week?) ... but I think the retainer/on call model could be just as good ... get 10-15 companies pa…

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Re: How I went from $100-an-hour programming to $X0,000-a-week consulting

#106
There seem to be a lot of comments centered on “wow, this sounds great – I wish I could charge more” or “how do I find these high paying contracts”?

Here’s one way. It may seem obvious to many, but I think it bears stating.

If you are looking for consulting contracts that pay really well, focus on providing a service that helps companies make money rather than save money. In other words, help grow revenues rather than reduce expenses – people pay much more for that.

Here’s the reasoning: When business managers, executives, etc. are given targets, they typically relate to increasing revenues much more often than reducing expenses. Not surprisingly, increasing revenues is therefore “front of mind” for those with budgets to make it happen, and they see tremendous value in someone who can help them do that. The fact that a little automation in the accounting system will save a data entry clerk a few hours a month – hmmm...maybe next month.

Case in point - I remember reading a comment somewhere from a Google employee who was complaining that at Google, those working on the revenue generation side of the business (i.e. advertising, adwords, etc.) got all the “love and attention” in terms of getting the resources required to get their job done, while others working on more obscure projects had to put up with leftovers. Now I’m not sure if that is actually true at Google, but I wouldn't be surprised as I've seen it at many other companies – the “rain makers” are the darlings with dollars to spend, and the back office ops folks are left to struggle with fewer resources. All injustices aside, find a way to provide something to the rain makers.

The type of work that Patrick does directly improves revenues. If you are a DBA selling tuning services to help companies re-write gnarly queries for example, well, unless a slow performing query/process is directly impacting revenues in some way, it likely is a secondary priority in devops/support where budgets are tight and “learn to live with it” is becoming a way of life.

Re: How I went from $100-an-hour programming to $X0,000-a-week consulting

#107
post #92
post #60

Earlier quoted context omitted.

What does a consultant with programming chops bring that a non-programmer doesn't? The ability to write functional computer code, for one, which is a superpower . Besides that, I speak the language, engineering folks generally like working with me over working with "icky marketing types", I have a good understanding of what is easy and what isn't in terms of implementation, I can spec projects or deliver prototypes w…

The ability to work with (and have the respect) of the engineers is definitely an asset that cannot be overvalued. But in terms of writing functional computer code...how much are you actually writing? Is this code merely to wireframe/prototype something? Or is it an actually deliverable that the company will build atop? I guess what I'm getting at is the usual cynical trope by engineers against consulting: that consu…

But in terms of writing functional computer code...how much are you actually writing? Is this code merely to wireframe/prototype something? Or is it an actually deliverable that the company will build atop?

Depends on the engagement. There is code I wrote running in production at some clients. (Might want to keep an eye on the FC blog, as I expect there will be something interesting on there eventually, but until then that isn't my story to tell.)

So given a hypothetical company... what is your strategy for convincing them that you can tell them something they don't know?

I tell them something they don't know, and continue doing so until I win the engagement.

With specific reference to Fog Creek, I was active on their forums for a few years and folks there read my blog, so I wasn't exactly starting from a position of We Totally Don't Know Anything About You on the credibility ladder.

Re: How I went from $100-an-hour programming to $X0,000-a-week consulting

#108
post #35

Earlier quoted context omitted.

How do you make business acquaintances? I have a hard enough time leaving the house.

If you write Ruby and go to a SFRuby Meetup, you will learn quickly that even if you are looking for work it is quite annoying to say you are looking for work, as the recruiters swarm in like vultures to fresh carrion.

I write ruby (though I haven't done much rails yet), and went to literally dozens of SFRuby meetups. Yes, recruiters did swarm in a few times. However, it was a massive waste of time, hopes and energy since every single one of them was looking for a senior engineer. Interestingly, the last SFRuby meetup I went to at Carbon5, where we all had to introduce ourselves and what we did, about 5-7 of the twenty some people there were unemployed.

I've actually had better success finding work through HN and through friends of people I've worked for before (once again no help to someone just starting out).

Re: How I went from $100-an-hour programming to $X0,000-a-week consulting

#109
post #104
post #93

Reading this ... man, I'm not even at $100/hour programming yet.

It really is just a matter of charging more. Don't take more work for less than $ n an hour. Grandfather older clients in if you want, or don't if they're not the type of client you'd want to work with long term. As Patrick said in the article, there's no secret to charging more, except charging more. I have a full time job and have intentionally priced myself so that I only have one or two side jobs at any one time…

I live in a country where very senior developers often get confused and charge as little as 20 euro per hour. In comparison, my higher rate seems ludicrous and I have trouble with people.

Yes, I am working on moving and yes I do work mostly with remote clients. But you know how it is, clients feel much better when you can take them out to coffee.

Re: How I went from $100-an-hour programming to $X0,000-a-week consulting

#110
post #60
post #37

Excellent article. 1. I would be interested in learning more about what a programmer brings to the table in the consulting field. I mean, besides raw programming knowledge. The OP mentions Fog Creek as one of his first clients, a place that obviously is not short on programming insights. What does a consultant with programming chops bring that a non-programmer doesn't? Better ideas? Better tailored ideas? 2) Pedantic…

What does a consultant with programming chops bring that a non-programmer doesn't? The ability to write functional computer code, for one, which is a superpower . Besides that, I speak the language, engineering folks generally like working with me over working with "icky marketing types", I have a good understanding of what is easy and what isn't in terms of implementation, I can spec projects or deliver prototypes w…

Do you mean "functional" as in "it actually works" or "functional" functional?
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