Mobile phone voicemail: You have 1 new message. First message…
“Hey Brian, this is Paul. I have a question for you that you are well suited to answer. I’m talking to a company about contracting for a week or two. I don’t know what to charge for a consulting fee and I want to bounce some thoughts off of you.”
Wow, that’s huge.
I’ve been a consultant for two years and I know the going rate for my profession, but giving advice to another who works in a much different field can be dicey. I thought about it for a bit and called him back.
He described the opportunity to me and it sounded quite exciting. The prospective client was offering him a plum project with enormous responsibility. I asked him if he had a consulting contract or if the company had sent him a work agreement. No to both questions. Be sure to have an agreement in writing and signed by both parties before you start work on the project. This is important! Make no assumptions and be careful about trust. It can get you burned.
We discussed the general contents of the contract document and I promised to send him my template when I could get to my computer.
We then talked money. He told me what he thought he should charge per week.
Gulp.
Without question, I knew his rate was too low. In my field the rate he stated is low and I was convinced his contribution was going to deliver significant measurable value. I suggested asking for more. In fact, I encouraged him to ask for more than he thought he could get. You never know, you may get a yes, I said. If the client balks, at least you’ve set a negotiation starting point that is above the rate you are prepared to accept. He agreed.
This situation couldn’t have had a better result. He submitted a higher rate and the client agreed. Now that’s winning.
There’s nothing like helping a friend.
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