Many consultants are choosing to starve.
I know it sounds crazy, but it’s true and I have no idea why.
They set their consulting fees on an hourly basis. Who else does that? The electrician, the plumber. These can be good solid jobs (in fact, they can be quite lucrative). But is associating their image with these professions really a good idea?
It’s not that there’s anything wrong with the consultant’s skill level or the service they provide. But hourly rates mean both the consultant and the client are clock watching – and that never seems to be a good thing.
Then there’s the project fee. This might be a step up, but the word “project” conjures up the image that there is a definite ending.
Why would you want a definite ending with a client?
Getting paid on an on-going monthly basis makes so much more sense. If you’re providing value and delivering results your clients will be happy to keep paying you.
They’ll see you as an asset to their company.
And, you’ll become a part of their business … an indispensable one at that!
Consultants need not starve, they only need to structure their consulting business and fees in the right way.
I’ve talked about consultants fees (see the link for an article on using monthly retainers) in more detail throughout this blog.
The other solution aside from setting up a consulting retainer with your client is to introduce value-based pricing. Newbies to consulting find this strategy a hard one to pull off … though it need not be. We’ve touched on value-based pricing before … and I think it’s something we’ll discuss again as it deserves more attention.
Fast Track to Consulting Success®
If you’re looking for more detailed actionable information on how to use this strategy effectively to grow your consulting business be sure to check out our new course designed to put you on the fast track to becoming a successful consultant. Check it out here »