Tips For Determining Consultant Fees
When first starting out, almost all of us underestimate how much we need to charge for our services. Also, many of us deliberately low ball our services in order to just get clients when competing against large consulting firms. Here are some ways you can go about determining consultant fees.
Consultants can normally charge for fees in three ways:
- hourly
- project based
- retainer
When charging by the hour it is the least likely way to underestimate your expenses. Project based fees often end up being much less. Projects always seem to be bigger, last longer, and more time then we estimate.
A retainer fee is nice if you can get it. But you must be available when the client needs you, which makes it hard to free yourself for new business.
Comfort Level
I recommend charging the way the client is most comfortable. Many companies hiring first time consultant seem more comfortable paying by the hour.
Consultants who have made a great name for themselves in the industry can often charge by the project and command large fees.
Summary
Remember in the end not matter what you charge or how, make sure you give the client over the top service.
When first starting out you need to make a name for yourself and you do this by providing excellent service ALL THE TIME!
Even if you severely underestimated how much time a project takes and you are losing money, still provide excellent service.
Work For Free
If you are desperate to get some referrals, try offering your service for free, or with a 100% money back guarantee.
The point is to get the ball rolling and get your name out there.
Remember the rule of 5 I previously posted about. Everyday try and do 5 things to get new clients. These could be emails, phone calls, or mailings.
