Today, I’m excited to announce the launch of the second edition of Consulting Fees: A Guide for Independent Consultants. I’ve completely overhauled the original guide and expanded it to 124 pages. To help you move your businesses to the next level, I’ve added a major section on Solution-Based Fees, which includes help in overcoming any emotional blocks you may have in charging fees that represent the value of the solutions you offer. As you may already know, charging by the hour has limits in the long term and, to build true wealth and freedom, you need to charge for your solutions, not your time.
Help in moving to Solution-based Fees
The updated Consulting Fees guide
still includes all the information on consulting fee formulae, models and methods, but now there’s more information to help you work toward a more sophisticated model, where your feels truly reflect your value. The problem with an hourly rate is that there’s a cap on how much you can earn. You can only work so many hours in a day! However, while some people out there urge you to simply start asking for fees that reflect your value, you may need to overcome some obstacles and even internal roadblocks before you can do so. The new guide goes into detail about some of the things you and your business need to do so that you can move to solution-based fees.
A realistic approach to consulting rates
I’ve always tried to approach my ebooks and the articles on this website with the idea that the information I provide has to be realistic. I’ve shied away from talking about Solution-based Fees up till now because, while I really think it’s the key to getting ahead in consulting, it’s an approach that really takes a certain mindset. Most of the books out there seem to think that all you have to do is change your mindset and start holding your ground. However, I really don’t think that’s realistic. You have to do some inner work — whether on yourself or your business — before you can jump to solution-based fees. If you’re not in a position of internal strength in yourself and your business, Solution-based Fees will be too far a leap. Many of the other proponents of making that move really do very little other than promote the idea — they don’t talk about the work you need to do to get ready. So that’s why I’ve gone into depth about some of those hurdles and focused on helping you prepare for Solution-based Fees.
The consulting fee model you choose is up to you
Really, setting your fees comes down to valuing yourself and your boundaries. If you have a strong sense of yourself and your business and you choose a model that reflects that, you’ll be in a much better position to run your business. Fees and contracts are all about setting boundaries and it can sometimes take some work to get to a point where you’re grounded in the value you offer and the wisdom of your own experience. However, you may not be ready to make the move to Solution-based Fees and that’s totally okay. Many successful consultants stick to solid models, such as charging by the hour. That’s why the first half of my Consulting Fees Guide talks about those models in depth. It’s your choice and your business. You’re the best one to make decisions.