When you become a consultant or upgrade your business, you'll need to set consulting rates. Not only does this make it easier for your clients to manage the cost of consulting, but it also allows you to obtain a continuous stream of income. Remember that your consulting fees are a representation of the value you bring to clients. To maximize the profitability of your consulting projects, create a clear outline of the various tasks included in a project and estimate the time it will take you to complete each of them. If you need to develop your skills and confidence as a new consultant, consider offering a Beta Program to people you already know, making it perfectly clear that you are in the process of learning and that you will charge more when you have some clients under your belt.
To set fees, some consultants simply take the hourly wage (plus benefits) they would earn if they worked for someone else and then double or triple it. The competitive landscape and your physical location are the final components that will influence your consulting fees. With the right strategy and mindset, consultants can earn five or six figures or even more per month. If you're prepared to make the leap to full-time consulting, but want to maintain your current cost of living, you must determine the cost of doing business. It's one of the best ways for consultants to gain an advantage and increase their profits without having to spend more time working. This strategy can be the most successful and easiest to implement for consultants of all levels of experience.
Regardless of how you set your consulting fees, be sure to use a consulting contract and agreement for consulting services. Keep in mind that the rates you'll pay may vary depending on where you live, the specific services you need, and whether you need one-time or ongoing consulting. Look for local business consultants and check prices. This last piece of advice may seem silly, but sometimes it makes sense to charge what everyone else charges for consulting. We asked consultants about their particular pricing strategies and the results might surprise you.