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

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131–140 of 270 posts

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

#131

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…

In sysadmin work it's easier to make large consulting fees. The problem you have is that no one spends the money for good sysadmin architecture/infrastructure. So you can't sell "good practices". Instead just focus your work in loss aversion, not value creation. People will spend more for a emergency room doctor/hospital than a gym membership. The keys are two simple things: 1. Be able to quickly fix expensive proble…

>The problem you have is that no one spends the money for good sysadmin architecture/infrastructure.

I disagree with your statement. I am currently in Chicago just completing the infrastructure implementation for a large enterprise client where I specifically was brought on to do their tech infrastructure.

They pay a lot for this service.

Here is my scope of work:

Physical cable plant design

Physical network design (based on their corporate logical architecture)

Physical/Logical implementation (Procure, track, receive, rack, patch, power, config, test, coordinate, hand-off)

Turn up and test

Day-one operational support and hand-off.

Doing this for all their global offices.

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

#132

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…

Protip: don't ever reply to ads that ask for a "ninja" or "rockstar." Look for the more boring sounding jobs; they will have fewer people competing for the job, so you can probably make relatively better rates.

Also, why do you only do remote work? Is there no one near you who needs a sysadmin? Could you travel? People value face-to-face interaction a lot more than online; if you only do remote work, then some guy in Bangalore can undercut your rates (hence the $20 an hour offers), and you're not really offering much over him.

And as the original article says, don't charge per hour. Charge per week, or per incident. And charge rates that make sense for that kind of time frame. Read the original article; it has good advice. Once you charge per week (or per incident, based on a standard weekly rate), you can start talking about "OK, you want to spend less, which things should I not do", not "Well, I think I'm worth $50 an hour, but since I need the money, I'll take the job for $20"

Yes, for systems administration it can work that way. Here where I work we don't really have any sysadmins (or everyone's a sysadmin, which is even worse). We have developers, and we have tech support who support customer systems, and we all kind of chip in on the system administration, but we don't have anyone who's job it is to maintain our own network. It finally got so bad that we've brought someone in to straighten it out. I don't know the details of how he's being paid, but I could easily imagine it as "it will cost $5000 for me to track down your problems, reconfigure your core router, set it up in a way that will be more maintainable in the future, and write the documentation for running that."

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

#133
post #100

Earlier quoted context omitted.

Was this a particularly "niche-y" software that you had (perhaps unknowingly?) positioned yourselves as the leaders? Presumably it wasn't The Next Big To-Do App but something that gave quite a bit of value.

It was our crowdfunding plugin for WordPress - http://ignitiondeck.com

I'm working a lot on my open source projects, building a good portfolio. I'm hoping I can get to a point where I find something worth charging for, but for now I'm building tools on weekends and using a large and well-received portfolio to garnish some attention.

Great idea you've got there. I wish you only success!

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

#134
I have freelanced for almost 15 years in Europe and a bit of Middle East. I have done pretty well, charging easily 1K Euro a day, less in the last couple of years.

Last year, with a colleague and friend, we started our consulting company. The main reason for that being "let's scale!". We contacted a bunch of freelance colleagues we trusted and respected and asked them to join us as hired guns, whenever we needed more workforce.

Another reason for starting a company was that the developer profession is not rewarded as the experience increases. At least in Europe, a 3-4 years experience Java developer can make almost as much as a 10 years experience Java expert. And there are rate roofs which are hardly crossable, so even if you are really really good and have plenty of war stories, still the 1K/day roof is pretty hard to cross.

So far, it didn't go exactly as expected. We are doing ok, we have some clients (we are in the Java space, so mostly enterprise stuff) but nothing spectacular. We are having an hard time acquiring new clients and the long running European crisis doesn't help.

I'm working considerably more than in the past (weekends are a rare commodity, very long days, in short my work/life balance is critically crappy), so sometime I wonder if it's worth the hassle.

The scalability part is very tough: we hired one guy (who was a disappointment) and we use our trusted hired guns, who are often busy with their own consulting gig. Therefore, we are crazy busy.

Another problem is that the clients are really interested in our specific experience: that means they want to work with me or my partner, not with the company. This bit is hard to crack.

In short we are still figuring out how to go from here.

We will invest more in the web site and technical blog (we are also co-authoring a book) and we will hire one or two permanent devs (did I mention that hiring someone in Europe is bloody expensive, so that the 70% billable time mentioned in the article is too low?).

Working solo is easy, scaling is not. As a developer, you are faced with plenty of new challenges (finance, marketing, pr, negotiations, contracts, cashflow) - which is fascinating but damn consuming.

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

#135
post #109
post #104

Earlier quoted context omitted.

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.

> I live in a country where very senior developers often get confused and charge as little as 20 euro per hour

I've seen this in the US too. Talented devs charging 20-30/hr, while talentless hacks making $100/hr.

Your salary is not a function of your skills. It's a function of your negotiation skills, timing, and luck.

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

#136
post #21
post #11

So what do I do if I don't have a blog or any real friends to refer me? I don't know anyone at all here in SV and no one seems to want me anyways. On the flip side, I suppose that there are people that could use me but they don't know how to find consultants. The only time this has happened was when a potential employer and I didn't quite work so they let me name a price for the time I worked and they paid (rare in c…

Nobody wants a nobody. Have you tried manipulating the HN audience into thinking you're special? I can, annoyingly, name a dozen people from here who self-promote and pop up with frustrating frequency. After a while you start to think they're special even when they're just persistent. But few people are persistent with such follow through. Write stuff people want. Get it distributed widely. Repeat.

No, dear god. We need less self-promoting manipulators here and more substantive, authentic posters.

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

#137
post #21
post #11

So what do I do if I don't have a blog or any real friends to refer me? I don't know anyone at all here in SV and no one seems to want me anyways. On the flip side, I suppose that there are people that could use me but they don't know how to find consultants. The only time this has happened was when a potential employer and I didn't quite work so they let me name a price for the time I worked and they paid (rare in c…

Nobody wants a nobody. Have you tried manipulating the HN audience into thinking you're special? I can, annoyingly, name a dozen people from here who self-promote and pop up with frustrating frequency. After a while you start to think they're special even when they're just persistent. But few people are persistent with such follow through. Write stuff people want. Get it distributed widely. Repeat.

It's sad that you think "writing stuff people want" is manipulative and faux.

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

#138
post #82

Earlier quoted context omitted.

>>Go to conferences. ... Find conferences that relate to it and attend... later, speak at said conferences. >Well, I'm screwed. I can barely speak in private or deal with people. Maybe things are different in tech, but I don't know anyone who likes attending or speaking at conferences. Don't think of them as trips, think of them as work. Because they are.

Things can be very different in tech. When your job keeps you mentally and physically isolated from your coworkers, getting together with like minded people to talk shop is nice. Even more so because for some developers talking shop is one of the few conversation topics they feel comfortable with. When your job is slugging away at decades old enterprise code, watching a talk about game development, fancy math, or imp…

Point taken; I was saying (unclearly, maybe) that not liking conferences/speaking/whatever is a pretty weak reason for avoiding them. Lots of people don't like them, but go because it's what the job requires (and, just to preempt replies, act pleasant and engaged while there).

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

#139
A friend of mine is a marketing consultant and a real genius. He got paid $x0,000 to come up with the title and general theme for the book "Rich Dad, Poor Dad".

But the author has made $x0,000,000 from it, despite the mediocre (at best) quality of the book. Really it was the positioning that made it catch on. My friend's career is full of stories like that, so it's not a one off.

If you do work as a consultant, definitely, charge what you can. But no matter how much you charge for consulting, it's never as much as its worth.

Im sure that pg could charge what sounds like a really high rate for his time. But it would be nothing compared to what he can make from equity. And I promise, it would be a lot less fun.

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