Okay, but what do you REALLY charge by the hour?

A guy writes me today who sat through a three-hour talk I gave on value-based fees not too long ago. He wanted to know how much I really charge for an “average month of consulting” and how many hours I calculate with what rate. Then he asked if there were formulas in Million Dollar Consulting because he was unsure whether he should purchase the book (for $16!!).

My friends, it’s not hard to stand out in a crowd when the crowd is receding behind you as you watch. The greatest shame is that he wasted three hours of his time and used up a seat that someone else might have more profitably occupied.

4 thoughts on “Okay, but what do you REALLY charge by the hour?

  1. How hard is this? I have recently purchased three of your books (Getting Started In Consulting; Million Dollar Consulting; Money Talks). I was half way through the first book when I went to my boss and showed him we could do this (consult), within our industry. He said “Go for it.” Over the past two weeks we have acquired our first client ($45,000 in business),and I have started a blog which I will utilize to help market this part of the business; solely based on the advice in these books.

    My advice to this gentlemen would be, “Don’t waste (more of) your money if you are not willing to heed the advice.”

    Alan, thanks for your valuable wisdom!

  2. Having not billed an hour since 2000 (and then because the client’s payment system demanded hours, so we decided on the project fee and billed accordingly), I can attest to the wisdom of value-based fees that I learned early and refined greatly through the Ultimate Consultant series. I still struggle with the initial explanation to clients who aren’t used to it, but am getting better at the message in various industries.

    In the project-based IT consulting and development industry, there are some risks to value based fees that aren’t apparent in other disciplines. Taking those risks is what makes it all so exciting.

    Thanks Alan for continuing to educate on this topic. Maybe someday, I won’t have to explain it so much myself!

  3. I’m convinced that half of a percent of people are low-caibre, uncommitted individuals who simply don’t listen, even if their boss has paid for them to attend a seminar.

    This is a major reason I gave up issuing smile sheets. I read your criticism of them just after a delegate, who had spent most of the day playing with her cellphone, wrote that I had not spoken on one of the promised topics.

    I replied gently pointing out that I had actually dedicated an entire hour of day to speaking about the topic.

  4. I ignore all smile sheets because I don’t care about audience feedback, only buyer feedback. I’m often hired to discomfort people, not to help them walk over hot coals and think that’s some kind of achievement.

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