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

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

#161
post #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…

"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."

You certainly have a lot more business experience than I do - however I've been working recently on preparing a lots of tender responses. I work at a software consulting firm, with about 10 devs and 20 GIS analysts.

In our tender responses we include the resumes of the people who will be working on the project as an appendix right at the back. At the front we have a section with our 'relevant experience'. In the 'relevant experience section' we NEVER mention which person worked on a specific project. Its always termed as "XYZ corp developed an app to ... " or "XYZ corp worked with ABC inc to ..."

I guess it comes down to a metal shift in always describing things your company has achieved, instead of things you as an individual have done.

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

#162
post #55

Earlier quoted context omitted.

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?

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? Be good at what you do; your location shouldn't affect your consulting rates. By way of example, I routinely bill in excess of $100/hour despite being located in Poland. And trust me, I'm working on increasing the value I deliver, and charging appropriately.

Are you talking about local clients, or do you have to take on international clients?

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

#163
After reading the article and the comments, I'm having a bit of a "a-ha!" moment with the billing question (by week, why didn't I think of that).

I have been an independent technology consultant for 12 years now, with a variety clients (big and small) and I'd say "successful" over all. I generally follow all of the good advice principals mentioned in these comments (mostly think long term with a client, don't charge for the small stuff, make the client feel important, etc).

The one item that keeps coming up over and over is that I'm "independent". It's just me. I get hit by a bus and my clients are out of luck. Now I agree that generally speaking they don't want anyone else working on their projects, but at the same time they would really like some backup. This seems like a nearly impossible problem. I'm not interested in hiring anyone for the reasons mentioned here. Plus, acting alone doesn't appear to give me the ability to get the really big projects ($1M+). Clients aren't going to give "just me" a project of this scale, it wouldn't be good business sense.

So, I've been stuck with letting "IT consultancy firms" find me work on several occasions. They get to mark up my rate, often mix me with other techies, and basically get to sit back and collect money for something that I'm delivering. I'm the one at the client, building the relationship, looking for more work, etc. It's always bothered me that because I'm not a "firm", I don't appear to bill higher rates or win bigger projects. Honestly, it's just me delivering the work anyway. Hopefully this makes sense.

The only way I've come up with to reverse this course is to create a firm where I partner with follow IT consultants and we own the firm. Ownership, I think, is the key. If I work for an existing IT firm, I make a nice hourly rate but I have nothing to show for it at the end. Meanwhile, the firm's ownership, who often are not techies and do not have technology skills, gain everything at the end of the day. If the technology staff owns the firm, then that builds in all sorts of interesting incentives. Now the owners actually have a reason to refer other technology people to the firm, builds firm value. Clients see the combined value of the firm, thus hopefully opening the doors to bigger projects and better value. Plus, the "backup" problem is solved since clients understand that there is a team.

I haven't quite figured out how to get this off the ground (really just started thinking about it over the last couple of months), but it's interesting to me that other independent IT consultants haven't done this already. Or, maybe they have and there's some obvious reason why it doesn't work.

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

#164
post #132

Earlier quoted context omitted.

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…

> Protip: don't ever reply to ads that ask for a "ninja" or "rockstar." No, please do reply. Then go in wearing leather pants, with white powder on your upper lip and reeking of Jack Daniels. Use a pawn-shop electric guitar to smash the fuck out of their interview room. Then stab somebody with a katana on your way out. It's the only way these people will learn.

I like this solution.

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

#165
post #135
post #109

Earlier quoted context omitted.

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.

Ah yes, but it is influenced by everybody else's salary.

When a business can pay a well established[1] local web agency 5 euro more than me, a single developer, who do you think they are going to pick?

[1] well established meaning they are considered one of the best 3, if not the best web agency around here

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

#166

Earlier quoted context omitted.

>>many people have built and written up methodologies for using code to make money for businesses Would you mind pointing out some examples, or naming the field of literature? When I googled "optimizing business processes with software" I got a bunch of ads for software. I'm not entirely sure what I'm looking for.

Umm... well... for fear of stating the obvious, Patrick's blog (see TFA) would probably be a really good place to start. You should also watch every video at http://businessofsoftware.org/category/video-2 -- they are presented in the context of helping software companies become better but a lot of the ideas presented could be flipped around (I'm especially thinking of applying various forms of business analytics to m…

Obvious or not, it hadn't occurred to me. I'll check out those videos, too. Thanks.

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

#167
post #85

This is a great article, but one thing it doesn't really address: how does one get started doing this while still keeping a day job? I would love to start charging for value by the week, but if I can only spend 10 hours a week on a particular contract, how do I sell that?

Your value will be 1/4 of what the full week of work would be, so price accordingly?

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

#168
At the end of your article you said to hit reply if you want to hear more, but I didn't see a reply button so maybe you meant post it here?

I'd like an article about the transition from being an employee of a company to being a consultant. I've never been a consultant before and it's extremely intimidating to think about quitting my job. Did you/do others usually do this all at once, or is there a way to do it gradually? As gradual as possible, ideally.

Does it make sense to have a weekly rate if you only work 2 hours a day after your day job?

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

#169
post #31

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 don't know about sysadmin work, but I'm pretty sure DevOps could be. I worked at a company that ended up spending probably several man-years worth of effort over a period of three years on puppetizing their environment and still doesn't have a one-click-deploy of their infrastructure and feels the pain of that acutely every few months when a new environment needs to be brought up by hand. If someone'd been around o…

I think this is the key - selling yourself as a 'sysadmin' is like calling yourself a 'programmer' - it's a commodity.

Instead you're a site scaling engineer, or a cloud automation specialist, whatever sounds like it'll solve the client's problems - which these days are frequently that a bunch of developers set up the production environment on the fly and it just about works but isn't reliable or convenient.

I think the future for sysadmin work is definitely 'DevOps' - and it's not really that much different from old school sysadmin. Yeah a pure Chef/Puppet-managed system is more like writing code than hacking away, but behind it all it's the same kind of work.

It is definitely possible to bill US$2k per week or more as a contract sysadmin, but trolling through Craig's List isn't the way to manage it!

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

#170
post #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 tha…

This is a great point. I've been trying to think of as many things programmers can do that increase revenue as possible. A/B Testing and sales funnel optimization is definitely a winner. - Optimizing how a company utilises it's resources - Optimizing the speed and performance of a critical business function. - Increasing marketing reach - Generating more sales leads What else guys?

I actually think of your first two points (optimizing...) as cost cutting services, while the other two are good examples.
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