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If
client doesn't like your recommendations, at least you get paid for work you did. Perhaps you can charge him to prepare alternative suggestions.
If your website project was not broken into smaller steps or assignments, you could find that you spent way more time on project than anticipated.
Also, you might not find out until you present your bill for whole project that your client won't pay, either because he is not satisfied with results or because he is unable or unwilling to pay.
Breaking down a project into smaller assignments helps you estimate more accurately and limits your financial exposure.
3. Contingency or Performance Arrangements
Sometimes clients will ask you to become their partner. If you do, you are no longer an objective consultant.
What if your client asks you to do management consulting for twenty-five percent of net profits? Will there even be any profit by time he writes off his car, home office, entertainment, travel, wages to self and family members, and other expenses? On other hand, if you are a marketing consultant that is absolutely certain that you can increase a client's sales, you may feel confident charging a fee based on increased sales volume of client. Are you sure your client will co-operate with you in attaining of this goal?
Some consultants charge a flat rate plus a percentage of ownership or profits for their services.
Fees based on contingency or performance arrangements are risky. Most consultants are better off charging a fair price for their services and leaving risk of client's business to client.
4. Value Based Fees
Sometimes consultants can justify fees based on their value to client. For example, if you save a client one million dollars in taxes, your fee may be higher than normal to reflect value of services rendered.
You might pay an accountant or lawyer a fee of fifteen hundred dollars based on time for certain tax related services. What would you be willing to pay to legally save an extra million dollars in taxes? Ten thousand dollars, one hundred thousand dollars, or more?
Can you apply this information to your own consulting practice? Is there some particularly valuable service that you can render that would justify premium rates?
However and whatever you charge, be sure that your fee is a good value for your client and also compensates you fairly.
For further Information and resources about consulting, visit: http://www.yenommarketinginc.com/consulting.html
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J. Stephen Pope, President of Pope Consulting Inc., http://www.popeconsultinginc.com/ has been helping clients to earn maximum business profits for over twenty years.
For more valuable Work at Home Business Ideas, visit: http://www.yenommarketinginc.com/
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J. Stephen Pope, President of Pope Consulting Inc., http://www.popeconsultinginc.com/ has been helping clients to earn maximum business profits for over twenty years.
Visit his Work at Home Business Ideas Directory at http://www.yenommarketinginc.com/
