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To become a software consultant, avoid letting clients pay you for code (2017)

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Re: To become a software consultant, avoid letting clients pay you for code (2017)

#51
post #44

All is good and well until 5 years down the road you don't have experience implementing the newnosql.js stuff that is all the rage. You try to conform it to what you already know and end up with a myopic view of the solution. Since you are already respected people listen to you when defining architectures. Coders think you are a moron, impostor syndrome sets in. The doctors prescribe the new and improved treatment, b…

Do you think the VPs and CTOs know how to implement newnosql.js? The biggest challenges involve more that to get solved.

We are talking about consultants, but CTOs should have this knowledge if they if they are the ones making system architecture decisions. I have been at positions in which I had to explain to hierarchical superiors why a decision was bad or why some architecture was preferable. I was also overruled in some of these occasions, and in these cases we hit obstacles I predicted and had to change on the fly, ended up with delayed deliverables and a sub-optimal solution.

Re: To become a software consultant, avoid letting clients pay you for code (2017)

#52

One way to get clients to respect your input is to charge a lot.

Easier said than done. They may respect you but they'll also likely not hire you. They have to respect you AND know you. It's hard to justify paying someone a lot if they are an unknown quantity. I checked out your HN profile: do you think you can hire more because you specialize in Computer Vision/Graphics? I'd also imagine your clientele is highly-targeted as well?

As long as someone hires you, you are much better off. The clients that want "cheap" are generally not great clients. It's counter intuitive but charging more gets you better clients and more respect (in addition to more money).

Re: To become a software consultant, avoid letting clients pay you for code (2017)

#53
post #15

>Don’t ever let would-be consulting clients pay you for code that you write. A similar piece of advice is in the often-submitted article by Patrick McKenzie.[1] The common idea is that instead of being just a "code monkey", you position yourself higher up the value hierarchy to be more of a "solutions provider". In my observations of programmers that successfully sell consulting vs earning a W-2 salary, both articles…

When I got into consulting I read that MacKenzie article and answered an ecstatic "Yes" to all three and yet people see my resume and previous work and just immediately slot me into the "code monkey" territory. I am able to negotiate a great rate, so I've done very well, but I believe I could do better if I was able to get the higher value projects, but no one has yet to perceive me this way.

Is it possibly because you've positioned yourself in a such a way that you attract customers who will only ever see you as a coder for hire?

I love the look of your consulting website, but "We create beautiful, engaging applications" isn't a very strong positioning statement. Most generalist software shops have something similar on their site. And if you position yourself that way, whether online or in person, I think that most customers will inevitably see you as an implementer of software.

In smaller text, you write "If you’re a healthcare or fintech company, we can help you launch products faster with fewer resources to increase conversions and get results".

Now that's definitely a stronger positioning statement. Do you think it would be helpful to position yourself more strongly along those lines? Like, instead of your big hero text saying something general, could it be something more specific like "End-to-end app development for healthcare companies", or to narrow it down even more, something like "Dashboards for fintech companies".

That last one might seem really narrow, but that kind of narrowness also helps you build up a reputation as more than just a code jockey. It's hard to become known as the go-to person for beautiful, engaging applications, because there are just too many people who market themselves and their companies that way.

But it's a lot more doable to become known as the go-to person for reactive fintech dashboards. It takes a bit of time to establish your authority in a niche like that, though. But since you're already doing software consulting profitably, you're in a good position to move in that direction.

And once you're known as an authority in a specific area, you almost automatically become seen as more than just an implementer. Instead of coming to you with exact specs that need to be coded up, you'll have more conversations along the lines of "this is what we're trying to achieve; since you're the expert on this topic, how would you recommend we do it?".

Since you've completed customer projects successfully, you now have project management experience. In your marketing materials, and in conversations with potential customers, would it be possible to emphasize the project management angle? Because that could be a solid point of difference that works in your favor. Unlike most software developers, you have project management experience. You don't just deliver code. You deliver complete end-to-end solutions that don't require the customer to specify everything in excruciating detail. Instead, you're like an amazing machine to which customers only have to insert high-level business requirements.

Please note that none of this is intended as criticism. You're obviously already enjoying success! Over the years, I've just seen other people in the same position you're in, asking the same questions you are. And so I figured that sharing a few observations might be helpful.

If you haven't read it already, Philip Morgan's positioning manual covers this in a lot of detail: https://philipmorganconsulting.com/the-positioning-manual-fo...

I don't have any connection to him aside from being a customer.

Re: To become a software consultant, avoid letting clients pay you for code (2017)

#54

I've only been at it a year but I find this to be nearly impossible. 95% of my income this past year was writing software. Whenever someone saw me as a "software consultant" they thought "well why don't we pay him to implement it too?" But I also made more than double what I made when I was full-time. I really would like to know how to not immediately be slotted as someone who is just a coding mercenary.

[deleted]

Re: To become a software consultant, avoid letting clients pay you for code (2017)

#55
post #25

Earlier quoted context omitted.

These companies/people are paid not for their general purpose skills/consulting. They are paid for trust/brand. """No one got fired for choosing McKinsey/BCG/Deloitte/IBM/MS etc"""

I feel that "no one gets fired for choosing X" is such a pervasive non-sequitur. A brand's goodwill (trust and so forth) is a function of its ability to deliver success for the client. Success establishes that trust. People who run projects internally, and use consultancies or agencies, still have business requirements like any other team (whether internal or external). I can't imagine a team would be immune to scrut…

No need to imagine. It happens all the time. More the rule than the exception, really.

Re: To become a software consultant, avoid letting clients pay you for code (2017)

#56
For any devs worried they're missing out because they're not in the "strategic" role described here: There's still a boatload of money to be made just doing the coding.

Yes, strategic work can be the way to big buck$, but there's also a shortage of reliable implementers of moderately-technical projects who don't disappear and communicate reasonably well.

Sure, you might not get to a $20k/week bill rate, but for many of us $4k/week isn't a bad start.

Re: To become a software consultant, avoid letting clients pay you for code (2017)

#57

I've only been at it a year but I find this to be nearly impossible. 95% of my income this past year was writing software. Whenever someone saw me as a "software consultant" they thought "well why don't we pay him to implement it too?" But I also made more than double what I made when I was full-time. I really would like to know how to not immediately be slotted as someone who is just a coding mercenary.

Don't take the work, or subcontract it.

So the breakdown I saw this past year was:

* 5% consulting (e.g. reports, audits, et al)

* 10% subcontracting to other devs

* 85% direct software development

The highest margins were certainly on that 15%, but the volume was not nearly high enough to be able to make it work.

Would a scenario be something like:

Prospect wants work done. Instead of turning them down because my rate is too, subcontract that to someone who is maybe less experienced and can do it at less than the advertised rate and bake in a margin there?

Re: To become a software consultant, avoid letting clients pay you for code (2017)

#58

For any devs worried they're missing out because they're not in the "strategic" role described here: There's still a boatload of money to be made just doing the coding. Yes, strategic work can be the way to big buck$, but there's also a shortage of reliable implementers of moderately-technical projects who don't disappear and communicate reasonably well. Sure, you might not get to a $20k/week bill rate, but for many…

I was able to stay this route. Started at $4k/week and worked my way up to $6k/week and still rising. If you can manage a project/have technical lead skills/have a hyper specialty (e.g. AR/VR, cryptography/security, AI/ML) I've seen rates anywhere from $150-300/hr.

Re: To become a software consultant, avoid letting clients pay you for code (2017)

#59

Earlier quoted context omitted.

Easier said than done. They may respect you but they'll also likely not hire you. They have to respect you AND know you. It's hard to justify paying someone a lot if they are an unknown quantity. I checked out your HN profile: do you think you can hire more because you specialize in Computer Vision/Graphics? I'd also imagine your clientele is highly-targeted as well?

As long as someone hires you, you are much better off. The clients that want "cheap" are generally not great clients. It's counter intuitive but charging more gets you better clients and more respect (in addition to more money).

I should have asked what you believe is more. $75-100 is definitely in the "cheap" range, $100-150 I see for senior generalists, and $150-300 I see for the principal/architect/specialist rates. At some point the number isn't sustainable unless you're like a brand-name entity (e.g. John Carmack, Jeff Atwood, John Resig, and I'm just guessing here).

Re: To become a software consultant, avoid letting clients pay you for code (2017)

#60
post #7

Earlier quoted context omitted.

I tried this a bit myself. You are right that you can provide tremendous value, but early-stage startups either don't have, or aren't willing to spend, the money that you deserve for the value you'd provide. Maybe there's a niche you can target that I was unaware of. Hopefully you have more success!

I'm not so sure about the lack of funding. A number of startups really start having this issue once they start seeing some traction. Maybe they're actively looking for new or additional senior technical leadership or just scaling the team. Either way the opportunity is certainly there for companies to hire temporary technical leadership.

I've also done this and can agree with the parent of this comment.

The problem here is once they have traction and funding, they likely have a full-time CTO. Fractional CTOs are generally needed at the seed stage when the technical solution hasn't really come together and they don't have this skill-set in house. They also don't have money. It's a slippery slope, and you're better off being a technical advisor (low effort, low equity, low risk) than working underpaid and overworked.

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