Whether you are a rookie consultant or have been in the consulting industry for many years, one of the most difficult questions to answer is “how much to charge a client for your consulting services?”
As a consultant, there are possibly three methods that you can use to charge your clients. Let us dive straight in and see what they are so that you can have a clearer picture.
First Method: The Hourly Method
This particular charging method is extremely simple and most of the beginners tend to opt for this method. The hourly method is simply charging your client by the hour for your services. However, if you are a well-established consultant, it is recommended NOT to opt for this method.
Coming back to the hourly method, you can set up your own hourly rate by first googling the current average hourly rate in your local area. Then, with the help of CalcXML salary converter, you can find out the estimated hourly rate which you can charge from your clients.
Second Method: The Project-Based Method
For beginners and intermediate consultants, the project-based method is most appropriate. Although it is a tad complex than the hourly method, it gives a much clearer picture to the client regarding the payments.
This method is widely used because clients pay consultants on a per-project basis. All you need to do is create a list of deliverables for the particular project and give an estimate about how much time you will be taking to complete each deliverable. You can then add up all the hours of each deliverable and multiply them with your hourly rate you have in mind. This will give you your consulting fees based on the project at hand.
Third Method: The Value-Based Method
This particular method does not involve charging by the time spent or per-project basis. It simply comes down to the tangible or intangible value created by the consultant. Basically, you will be charging your client based on the results and outcomes you’ve created through your work. To know more about value-based method and how it actually works, click here.
If you want to know more about how to choose the right structure for consulting fees, you can click here.
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