I’ve been in the following situation before and so have a surprising number of my friends and colleagues. So I figured I’d lay out this first-time consulting conundrum and let the wisdom of the BNET crowds suggest answers.
Say you are in a transition period in your career. Seemingly out of the blue, a former employer or colleague contacts you to see if you are available to help with a new project. You are flattered that they value your work and could certainly use some extra cash. Plus, you get to keep one foot in the game as you continue your search for full-time employment in the field. So you tentatively express your interest in the gig.
But shortly after hanging up the phone, a nagging feeling sets in. You start to wonder whether you’ve accepted a lowball offer for your services. You’ve never been a consultant before so you do a little research and contact others in the profession to gauge what they’ve charged (and paid) for this type of work.
And unfortunately, your worst suspicions are confirmed. Whether you’re labeled a freelancer or a consultant, the fact of the matter is you are now an independent contractor. That means you’ve got to cover your own insurance, taxes and all other expenses. Furthermore, they aren’t paying you to pick up the phones. You’ve been brought on board to only provide your highly specialized skills. When you add it all up, you realize as a consultant you should be charging two to three times more than the fee they’ve suggested.
So what’s your next move?
You don’t want to compromise the relationship with whomever offered you work by haggling aggressively over a short-term project. But you know you’ll be bitter if you aren’t getting paid properly. You start thinking it might be better to turn the project down than get stuck in a permalancer rut. It’s an awkward follow-up conversation either way.
If you’ve been in this situation before, please share how you’ve dealt with it in the comments section below.
