Re: Consulting Fees

[Al Geist <al -dot- geist -at- geistassociates -dot- com>]

   Bill Swallow wrote:

     Double your salary and then divide by 2. Why? Insurance,
     infrastructure, and other overhead costs. It generally costs a company
     twice your salary to employ you.

   I must be missing something.  Isn't doubling your salary and dividing by two
   your salary?  For example, if I get $30 an hour, then 30 x 2 = 60.  If I
   then divide that by 2, I get 30.....
    A number of years ago, there was an interesting article in Writer's Digest
   about setting fees.  It starts with what you want to make annually, then
   goes from there.  Bill is right in that you need to calculate overhead costs
   -- the costs of just showing up to work (home office or onsite), insurance
   (medical, life, etc.), transportation, etc.  It also mentioned
   marketing.....you have to let people know you are in business and you have
   to work at getting the next contract.  Assuming that you are the lone
   employee, you will work only about 270 billable days per year on average.
   The rest are holidays and weekends.  How many of those days will be taken up
   marketing yourself?  In the beginning more than after you are established,
   but those days spent promoting yourself and trying to get that next contract
   are not billable.   Although doubling your current salary will get you into
   the ballpark, a pro forma spreadsheet will be a lot more accurate.

     That said, I know a lot fo writers who still to this day are charging
     less than $50/hr for consulting services. I just shake my head,
     because I don't get it. Meanwhile I know writers who charge over
     $100/hr for the same types of services, and get it consistently.

   It depends on where you live.  I've worked in places where you'd starve
   trying to get $50/hr because the market was glutted with out of work TWs,
   and I've worked in other places where you could almost name your price.  The
   former was a lot more livable than the latter, which explains why the market
   was glutted.
   Al

   --

   Al Geist
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   Voice/Msg: 802-658-3140

   Cell: 802-578-3964
   E-mail: [1]al -dot- geist -at- geistassociates -dot- com 
   URL: [2]www.geistassociates.com (online portfolio/resume)

   See also:
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   cards for all occasions)
   "When they call the roll in the Senate, the Senators do not know whether to
   answer "Present" or "Not guilty.""
                            Theodore Roosevelt

References

   1. mailto:al -dot- geist -at- geistassociates -dot- com
   2. http://www.geistassociates.com/
   3. http://www.geistimages.com/
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