Re:How to Work Out What to Charge Clients
by mirimir on Tuesday January 30, 2018 @10:12PM
(#16271017)
I'm not sure about 4x, but 3x is certainly reasonable. Or at least, I've worked for consulting firms that billed clients about 3x what they paid me. Some of the difference is social security, health insurance, management, and other overhead. But much of it is profit.
However, starting out as a consultant, it's unrealistic to expect that much. Unless you're already a star employee. But it is possible to get there, within a few years, if you're successful, and build a good reputation.
I started out billing my first clients at about 2x what I'd earned as salary. Once I started getting inquiries from new clients, I negotiated for more. I negotiated the hardest when I had lots of work from old clients.
What I billed new clients became my standard rate, going forward. Every year or so, I renegotiated rates with old ones, more aggressively when I had more work from new clients. But they always got a discount off my standard rate.
However, starting out as a consultant, it's unrealistic to expect that much. Unless you're already a star employee. But it is possible to get there, within a few years, if you're successful, and build a good reputation.
I started out billing my first clients at about 2x what I'd earned as salary. Once I started getting inquiries from new clients, I negotiated for more. I negotiated the hardest when I had lots of work from old clients.
What I billed new clients became my standard rate, going forward. Every year or so, I renegotiated rates with old ones, more aggressively when I had more work from new clients. But they always got a discount off my standard rate.