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How do YOU price out your Consulting Services?

by mobilesuccess
9 replies
I just hopefully landed my first client as a virtual project manager for a top mlm producer and now he is asking my salary requirements and I'm not sure how to charge.

He's basically looking for a "right hand man" to handle website design, replication, funnel building, training site design, and running his backoffice/helping with member support. Someone to handle the details and IT stuff while he focuses on recruiting.

I have the brain and feel for exactly what he needs but how do I charge so that I don't cut myself short but also so that he doesn't try to replace me with someone less expensive (seems like we're a good match so if I'm reasonably fair, I can probably quote a little higher than market).

He's basically waiting for me to come back with salary or hourly requirements and I could really use some advice.

Do I charge an hourly plus get affiliate commissions on products he needs, like Post Affilaite Pro?
#consulting #price #services
  • Profile picture of the author RyanLB
    Sounds like you'll be playing an integral role, but won't be joining the team as anything other than a contracted consultant?

    Two ways to go about it -

    1 - Compare the position that you will be filling to corporate positions and model your salary requirements from those. From your brief description it sounds like you'll be an integral piece of the puzzle, akin to VP of marketing, or marketing manager. Something along those lines.

    2 - Get a rounded figure of weekly hour requirements from him and base your salary off of your hourly rate. If you are going to be spending 40 hours a week and your usual rate is $40 per hour - you shouldn't be granting a discount too much lower than $1600 per week, or 6,400 per month. It really all depends on your current position and rates though.

    Whatever you do, be firm but open to discussion.
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    • Profile picture of the author MakemyOwn
      Originally Posted by RyanLB View Post

      Sounds like you'll be playing an integral role, but won't be joining the team as anything other than a contracted consultant?

      Two ways to go about it -

      1 - Compare the position that you will be filling to corporate positions and model your salary requirements from those. From your brief description it sounds like you'll be an integral piece of the puzzle, akin to VP of marketing, or marketing manager. Something along those lines.

      2 - Get a rounded figure of weekly hour requirements from him and base your salary off of your hourly rate. If you are going to be spending 40 hours a week and your usual rate is $40 per hour - you shouldn't be granting a discount too much lower than $1600 per week, or 6,400 per month. It really all depends on your current position and rates though.

      Whatever you do, be firm but open to discussion.
      I work as a sales consultant in the medical field and I could not agree more with the advise Ryan just gave you! Two thumbs up
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      • Profile picture of the author guitarizma
        Banned
        I have a simple method of doing this.

        I calculate the client's ROI. If he spends a buck on me how much does he make back and in how many days?

        For instance if my services make someone $100 in 1 day, I'd at least charge him $400-500 given I can resell my services to others.
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    • Profile picture of the author mobilesuccess
      Originally Posted by RyanLB View Post

      Sounds like you'll be playing an integral role, but won't be joining the team as anything other than a contracted consultant?

      Two ways to go about it -

      1 - Compare the position that you will be filling to corporate positions and model your salary requirements from those. From your brief description it sounds like you'll be an integral piece of the puzzle, akin to VP of marketing, or marketing manager. Something along those lines.

      2 - Get a rounded figure of weekly hour requirements from him and base your salary off of your hourly rate. If you are going to be spending 40 hours a week and your usual rate is $40 per hour - you shouldn't be granting a discount too much lower than $1600 per week, or 6,400 per month. It really all depends on your current position and rates though.

      Whatever you do, be firm but open to discussion.
      Great advice, thanks! I took both of your suggestions and submitted a weekly salary based on 40 hrs and a higher hourly wage for work less than 40 hrs.

      Another thing that I thought about - since it's virtual work - the biggest thing is pricing my services so he wont try to replace me too easily but high enough that I can sub out part of the work to someone I trust and take on more clients if I choose. Basically making sure that there is a spread I can cover and still make something for overseeing and managing the work.

      Any one have advice on length of contract and where I could find a decent one?
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  • Profile picture of the author talfighel
    I would charge them by the hours I work.

    So if you work 40 hours, charge them as much as you want. I would work for $30-$50 per hour.
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    • Profile picture of the author mobilesuccess
      Originally Posted by talfighel View Post

      I would charge them by the hours I work.

      So if you work 40 hours, charge them as much as you want. I would work for $30-$50 per hour.
      Thanks for the advice. So $30-$50/hr is $60-$100K a year. I would love to be in that range and will hopefully get there. I guess if he's a top mlm guy, then he can afford it. I just don't know if I'm there yet and if he wouldn't try to replace me at $70K a year out of pocket.

      Right now, I just want to build a good resume and step up my credentials over time.

      I'm gonna start a new thread soon on how to increase one's value as a consultant and hopefully get a lot of real actionable advice regarding skillsets and building up to $50+ an hour.
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    • Profile picture of the author Jason Kanigan
      Originally Posted by talfighel View Post

      I would charge them by the hours I work.

      So if you work 40 hours, charge them as much as you want. I would work for $30-$50 per hour.
      You are undercharging.

      This approach will keep you poor, as will many others.

      You are missing taxes, value, and profit by pricing this way.

      And you're trading hours for dollars, which is not a sustainable or scaleable business model. Trust me, I know. I did this for far too long.

      All you're doing is covering your living expenses. Treading water. Do the math, and you'll see what I mean.

      Instead, Monetize the Problem and charge on value.

      The money you make has to cover:
      • Your living expenses
      • Taxes (30%)
      • Profit

      And people don't have a clue that they have to build these things in, or they'll stay poor. Most price to cover living expenses...and then struggle month to month to do that.
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  • Profile picture of the author webrankingseoservices
    Originally Posted by mobilesuccess View Post

    Do I charge an hourly plus get affiliate commissions on products he needs, like Post Affilaite Pro?
    You need to charge per hour / flat fee for the work completed. Do not get into commissions, you will get stuck. I know this because i have experience in MLM and have worked with many leaders.
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  • Profile picture of the author Challendge
    I use Elance and price myself based on fair market value (excluding freelancers from third world countries that can price much lower) and then it also gives me a perfect payment platform that protects me
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