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An important note - $50/hr for a consultant with a contract spanning
several months is pretty good gig - since they are guaranteed 40/hrs
week for the duration of the contract.
$50/hr for a consultant to service/maintain a server for a small
business a few times a month is really really low - and this is how i
interpreted gary's technical needs for non-profits - am I wrong?
It's very difficult to maintain enough clients at a few hours a month to
make $50/hr pay off. I don't think it would be unreasonable to pay
$150/hr for that type of service.
On Sun, 2002-12-29 at 09:45, Bill Patterson wrote:
> Actually there are a few reasons why consultants often get more than that per
> hour.
> 1. They take on a much greater risk to their income by being consultants.
> It is very easy to go from over $50/hr. to nothing.
> 2. They are required to be able to do things that there aren't enough
> employees to do. This can mean a considerable amount of training time and
> expense.
> 3. They have to pay for any and all benefits they get. This includes the
> 7.75% social security tax that your employer pays. This includes all HMO or
> hospitalization premiums. This includes all workers compensation, life,
> liability, and other kinds of insurance. Business owner employees are REQUIRED
> to pay into the unemployment compensation funds, but are NOT allowed to take
> any benefits from it.
> 4. Pennsylvania has wanted about $300 per year minimum from corporations
> just to get started. New Jersey is close at $280. And it doesn't matter
> whether you are incorporated in Delaware, each state in which you do business
> wants its cut. On top of that a corporation is frequently expected to carry
> business insurance ($500-$600 minimum). Errors and omissions insurance can be
> $1000-$2000. Accounting fees can easily hover around $1000.
> 5. If the consultants are brokered the broker takes a percentage that the
> client pays and that the consultant never sees. (Typically this is a 20-40%
> markup.)
>
> You can't take the hourly rate billed to the client, multiply it by 2000
> hours/year, and get an annual salary equivalent. It just doesn't work that
> way. Most clients understand this.
>
> I have to be careful or I'll talk myself out of consulting.
>
> Bill Patterson
>
> gabriel rosenkoetter wrote:
>
> > On Sat, Dec 28, 2002 at 11:51:31PM -0500, Mike Leone wrote:
> > > That $50 an hr almost certainly is not a salaried rate, Gabe. Most likely
> > > consultant fee. And that's not high, for consultants.
> >
> > Oh, I understood what it was. And it's being not high for
> > consultants is only that much more ridiculous. :^>
> >
> > --
> > gabriel rosenkoetter
> > gr@eclipsed.net
> >
> > ------------------------------------------------------------------------
> > Part 1.2Type: application/pgp-signature
>
> _________________________________________________________________________
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--
W. Chris Shank <chris.shank@acetechgroup.com>
ACE Technology Group
_________________________________________________________________________
Philadelphia Linux Users Group -- http://www.phillylinux.org
Announcements - http://lists.netisland.net/mailman/listinfo/plug-announce
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