The scope of work should be a major determinant of your rates, but it's difficult to estimate the price per hour or project. For example, you might find it faster to write a 2000-word article for a company than to help produce a 5-minute podcast episode. For example, if a client offers you a huge sum for a large project, you might analyze the work and find that it takes twice as much time and effort to do what a smaller project with a smaller budget rewards you. However, remember that these types of pricing still exclude the true value of your work.
Consider the example of the Declaration of Independence. If you're doing business-disrupting work, that also comes at a financial price. If a client asks: “How much do you charge for consulting? From the start, try to guide the conversation to the details of the project. For example, you can say, “I'd like to have a good idea of the scope of the work before we talk about rates.
Sometimes, you'll have to compromise. For example, a customer's budget might not be able to afford it. Instead of completely rejecting the customer (or having the customer reject you), guide the customer toward negotiation. Get comprehensive training for all the essential skills needed for successful consultant hiring, including quantitative skills, business intuition and presentation.
If your clients have regularly hired consultants or freelancers, they'll be familiar with the average consulting market rates. However, consultants who work with companies, especially large corporations, often need to adapt their payment terms to this industry. Many consultants and freelancers make the mistake of confusing average consultant rates with standard prices; that's not the case. While we'll look at average consultant salaries and consulting rates by industry later on, these are just averages.
Retention fees can be great for your consulting business, as they are revenues that you can trust and plan with (a rare commodity in the world of freelancers). Whether you're a new consultant or if you've been in the game for years, pricing your consulting services is one of the most challenging aspects.