Setting a reasonable hourly wage for consulting

What’s a reasonable hourly wage for consulting? If you’ve read my post on how consultants go about setting consulting fee rates, you’ll have an idea of how to calculate the fees you charge. Still, many consultants wonder what sort of hourly wage would be reasonable.

Well, for starters, calling your consulting fee an "hourly wage" is really not the way to go. You’re not an employee, so you’re not earning a wage. What you’re doing is creating value for your clients. You’re helping them make money or save money. As a result, a reasonable consulting fee reflects the value you generate, while allowing you to meet your expenses, pay yourself, and earn a profit from the risk of running a small business. If your clients have consulting fee sticker shock, try helping them focus on the value you generate for them. And, for your own sake, keep in mind that you’re a business too.

You may also be interested in this post on consulting fees (PDF) from IEEE — although it’s aimed at engineers, the document is still interesting.

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"Setting a reasonable hourly wage for consulting" from Become a Consultant at ConsultantJournal.com.