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Digg it UP - Consulting Salary - Are Your Rates Salary Equivalent?
The purpose of a communications effort (e.g., advertising, public relations) is to motivate people to action. If it hasn’t, it has failed. The bottom line is this: action is the only communications measure that counts.Advertising and public relations can prompt action in different ways. A successful advertiseme
When you look at consulting salaries realistically it is easy to see how setting billing rates is very complex. Your rate has to be high
Feature-function-benefit selling presentations are effective because they work. For the purpose of brevity I will refer to it as "FFB" in this article. A professional sales training program will include this important technique in some form or another. You may see it referred to by a slightly different name, such as feature-ne
The Consulting Salary Equivalent of $75 an hour
$75 per hour sounds like an attractive rate. Most people will equate it with a yearly consulting salary close to $150,000. The assumptions are that there is little overhead and people with their own businesses hardly pay any taxes.
Unfortunately, figuring out a consulting salary is not that simple. You need to remember that you'll only be able to bill out about 75% of your week. This takes you from a starting place of a $150k consulting salary to $112k per year. That still doesn't sound bad though, right?
There’s still something you're missing here. It's called the Triple Billing Rule.
Triple Billing Rule
Your overall revenue is actually split into three. 1/3 goes to sales and marketing, 1/3 goes to taxes, insurance, fringe benefits and other overhead items. The final 1/3 goes toward a consulting salary. If we take our $75 per hour scenario, suddenly we have a maximum consulting salary of $49,500 but we haven't accounted for the other business expenses that come out the final third.
When you look at consulting salaries realistically it is easy to see how setting billing rates is very complex. Your rate has to be high
- To get started, enlist the early interest and participation of your Marketing Director. He/she should be a dedicated promotional partner in getting your exhibit program launched. If you do not have a communications department in your company, consider hiring your trade show exhibit company or an outside trade show marketing
The Consulting Salary Equivalent of $75 an hour
$75 per hour sounds like an attractive rate. Most people will equate it with a yearly consulting salary close to $150,000. The assumptions are that there is little overhead and people with their own businesses hardly pay any taxes.
Unfortunately, figuring out a consulting salary is not that simple. You need to remember that you'll only be able to bill out about 75% of your week. This takes you from a starting place of a $150k consulting salary to $112k per year. That still doesn't sound bad though, right?
There’s still something you're missing here. It's called the Triple Billing Rule.
Triple Billing Rule
Your overall revenue is actually split into three. 1/3 goes to sales and marketing, 1/3 goes to taxes, insurance, fringe benefits and other overhead items. The final 1/3 goes toward a consulting salary. If we take our $75 per hour scenario, suddenly we have a maximum consulting salary of $49,500 but we haven't accounted for the other business expenses that come out the final third.
When you look at consulting salaries realistically it is easy to see how setting billing rates is very complex. Your rate has to be high
There are varied types of small laser cutting machines depending on the type of laser cutting job that you want.You can cut carbon steel with a CO2 laser. The laser is a device that can produce a coherent and concentrated light beam through stimulation of molecular or electronic transitions to lower levels of energy tha
Unfortunately, figuring out a consulting salary is not that simple. You need to remember that you'll only be able to bill out about 75% of your week. This takes you from a starting place of a $150k consulting salary to $112k per year. That still doesn't sound bad though, right?
There’s still something you're missing here. It's called the Triple Billing Rule.
Triple Billing Rule
Your overall revenue is actually split into three. 1/3 goes to sales and marketing, 1/3 goes to taxes, insurance, fringe benefits and other overhead items. The final 1/3 goes toward a consulting salary. If we take our $75 per hour scenario, suddenly we have a maximum consulting salary of $49,500 but we haven't accounted for the other business expenses that come out the final third.
When you look at consulting salaries realistically it is easy to see how setting billing rates is very complex. Your rate has to be high
New sales people are prone to make mistakes and mistake they make indeed. Yet so many of these mistakes do not have to be made at all. For instance your grandfather told you that you have two ears and one mouth, why not use them in that ratio? Salesmen talk to much and often end up flustering the potential buyer or talk themse
There’s still something you're missing here. It's called the Triple Billing Rule.
Triple Billing Rule
Your overall revenue is actually split into three. 1/3 goes to sales and marketing, 1/3 goes to taxes, insurance, fringe benefits and other overhead items. The final 1/3 goes toward a consulting salary. If we take our $75 per hour scenario, suddenly we have a maximum consulting salary of $49,500 but we haven't accounted for the other business expenses that come out the final third.
When you look at consulting salaries realistically it is easy to see how setting billing rates is very complex. Your rate has to be high
Public commitments and dissonance go hand in hand. Even when we feel an action is not right, we still go through with it if we have publicly committed to such a course of action.The more public our stand, the more reluctant we are to change it. A now famous experiment conducted in 1955 by Morton Deutsch and Harold Gerar
When you look at consulting salaries realistically it is easy to see how setting billing rates is very complex. Your rate has to be high enough to pay yourself or a contractor/employee a decent consulting salary but not so high that it impedes finding clients.
The Bottom Line on Consulting Salaries
Consulting salaries come out of the final third of overall consulting revenue: marketing, sales, taxes, insurance, and administration all take precedence. When you start a computer consulting business it is important that you are able to pay yourself a consulting salary that is equivalent to what you would expect to make working for someone else. You may be an employer someday and you want to make sure the consulting salary you offer will be sufficient to attract the talent you are looking for.
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