How to Determine Your Fee, Pt. II: What’s It Worth To You?
So the next question is: How do you determine your hourly fee? This is one of the most common questions I receive when I speak to prospective Knowledge Leaders on the phone. And my answer is: Most people put between $200-$300. But really, it all depends on how much you feel your input is worth. The fact is, only you know how much experience you have within your industry, and only you can gauge how much that experience is worth in terms of the kinds of insights you might be able to provide. For example, my personal strengths lie in online marketing/advertising, social networking and graphic/web design. I believe I’m pretty current and knowledgeable about these industries, and I’ve also seen them evolve in the last few years. I have some educated guesses as to where they might be headed in the future. That being said, I would definitely pay myself at least $200/hour for my thoughts on these industries’ trends. Then again, I know I haven’t been a professional within these industries for as long as some other people have—that is, 15-30+ years, which is how long many of our experts have been employed within their respective fields—so I probably wouldn’t go above $300/hour.
Someone once asked me, “If the range is $100 to $500 an hour, why would anyone put less than $500?” Well, the truth is, the rate is, in part, a determining factor in the clients’ decision-making process regarding who gets picked for a consultation and who does not. If you put $500 as your rate, you’re indirectly stating that you are an extreme expert in your industry—which is great! If you are. If you’re not, though, you’d be better off choosing a lower amount. We find that a lot of doctors and those with highly specialized skills and knowledge, as well as C-level executives, are the ones who charge upwards of $400.
For those who’ve only been involved in their fields a short time—and by “short time” I mean three years or less—I don’t want you to be discouraged. After all, one has to be a recent college grad or new professional sometime in his or her life. And, as we are looking for variegated perspectives from individuals in multiple sectors of the industries we recruit for, your input is just as valid as that of your more seasoned counterparts. I would, though, if I were you, pick a rate in the $100-$200 range. After all, $100/hour is nothing to sneeze at! Even if the call only lasts half an hour, that’s $50 in your pocket! Let’s not forget that we’re in a recession, people. That $50 can go a long way and, unless I’ve completely been missing out my whole life, you can’t make $100/hour from just sitting around watching television.
And…that’s really it. The moral of the story is: An email from Tribeca Insights is not a scam; use discretion when determining your fee; and, no matter what, a little extra money never hurt anyone (well, except maybe Madoff these days…ha!). Go forth and be a Knowledge Leader!
technorati tags: Tribeca Insights, knowledge is power, not a scam
