Monthly Archives: June 2018
Happy July 4th…
Once again, it is time to reflect on Independence., and the price others have paid to secure it for all of us. It is why we celebrate the Fourth of July.
Consulting can also lead to Personal Independence (PI.) It has for me in three ways:
—Occupational Independence (OI) – This was the big attraction for me. Chafing under the corporate bit, I finally set myself free 30 years ago.
It has been a most satisfying ride, and I would do it again in a heartbeat. Never looked back.
—Financial Independence (FI) – Although not FI when I started, I reached the goal in just a few years. Nothing like running a business to sharpen you financial focus.
Fortunately, I had the support of a willing spouse, and enough money stashed to cover my expenses for a six months to a year. Never had to touch the stash.
–Location Independence (LI) – This let me move to AZ with minimal disruption. The kids were grown, weary of cold MN weather, and ready for a new adventure.
Even better, after a few years we ended us splitting our time between MN (where there were now grandkids) and AZ (where there was no snow.). All possible thanks to LI.
Not bragging — just offering some simple encouragement. Happy Fourth of July!
Remember — Uncle Daryl want YOU… to find your Independence too.
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Consulting Fee Study – 2018…
Here is a link to a recent consulting fee study from Consulting Success.
Over 33,000 consultants were polled, including Yours Truly. Not sure how many responses, but with that size database the results are statistically significant.
Here are some a key findings:
- 44% of the consultants with less than 4 years experience earn over six figures. Yes, even if you are just starting out, the potential is there.
- 72.5% of consultants bill based on time. Very popular with technical consultants, but I recommend charging by the project rather than by the hour.
- For 56.7% of consultants, their average consulting project is $10,000 or less. Many well executed smaller projects still add up to big $$$. They did for us.
Unfortunately, the study does not share specific rates. But primarily serving management consultants, Consulting Success emphasizes ROI (return on investment) based fees.
For example, if you can show a predicted ROI of $100,000, one should be able to sell a fee of $10-20,000 — regardless of time spent.
In my opinion, ROI is not as useful for technical consultants where clients are looking for concrete solutions to specific problems. Nevertheless, the data is still useful.
Special thanks to Consulting Success for sharing their results.
You may be interested in these past posts:
- Mangement vs Technical Consulting… (2011)
- Questions on Fees… (2013)
- Some Comments on Fees… (2015)
- Don’t Cut Your Fees… Cut the Scope… (2016)
- Consulting Fee Study – 2107… (2017)
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