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(OT) How much more do you charge as a consultant, vs. salary?

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Mike
 
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Default (OT) How much more do you charge as a consultant, vs. salary? - 08-13-2008 , 11:45 AM






How much do you charge as a freelance consultant, vs a normal annual salary?
On average, percentage-wise?

Say you made 70k as a full-time employee last year... how much do you charge
the next company who wants to hire you, on-site with full hours, but only as
a freelance consultant to start?

(Note that this company has no health benefits for its own full-time
employees, though most of them are, unlike you, full-time.)



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JoeyD1978
 
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Default Re: (OT) How much more do you charge as a consultant,vs. salary? - 08-13-2008 , 12:41 PM






$66 an hour minimum.

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darrel
 
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Default Re: (OT) How much more do you charge as a consultant, vs. salary? - 08-13-2008 , 04:12 PM



Quote:
How much do you charge as a freelance consultant, vs a normal annual
salary? On average, percentage-wise?
Salaried employees typically get paid slightly less then they are worth.

Consultants typically get paid 4 times what they are worth.

Quote:
Say you made 70k as a full-time employee last year... how much do you
charge the next company who wants to hire you, on-site with full hours,
but only as a freelance consultant to start?

(Note that this company has no health benefits for its own full-time
employees, though most of them are, unlike you, full-time.)
OK, serious answer: You've already answered that yourself.

You just need to do the formula:

(total annual take home pay you want or need + total annual expenses) / #
billable hours you work a year = your hourly consultant rate

The two things to keep in mind:

1) List ALL expenses (tax liability, insurance, office, car, software,
hardware, paperclips, etc, etc, etc)

2) don't think you'll be billable 40 hours a week as an independent. You
have to account for marketing time, networking, office management, vacation,
etc.

-Darrel



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