Salary - Your salary rates are equivalent?

Salaries are consulting closely related to the hourly billing rates that are charged and equivalent employees who can afford to pay, both themselves and others along the way. The salary of advice you would expect to be affordable given the hourly billing rates. This consulting salary must be sufficient to attract sales and technical staff, as the business scales up. If you do not set the rates at an appropriate level, then it will not be able to offer competitive salaries to future employees and business growth is less.

Compensation Consulting equivalent of $ 75 per hour

$ 75 per hour seems an attractive price. Most people will identify with an initial annual salary of $ 150,000 in consulting. The assumptions are that there is minimal overhead and people with their companies hardly pay taxes.

Unfortunately, trying to figure out a salary of advice is not so simple. You must remember that you will only be able to bill in about 75% of the week. This brings you to a point of departure for a salary of $ 150K to $ 112k consulting per year. That still does not sound bad, though, right?

There is still something missing here. It's called the Triple Billing Rule.

Triple Billing Rule

Your total revenue is actually divided into three. 1/3 goes to sales and marketing, 1/3 goes to taxes, insurance, fringe benefits and other general items. Approximately 1/3 goes to a salary advice. If we take our scenario of $ 75 per hour, suddenly we have a maximum salary of $ 49,500 for consulting, but did not account for other business expenses that come the final third.

When you look at salaries advisory realistically it is easy to see how the setting of billing rates is very complex. Your rate should be high enough to pay themselves or an employer / employee a decent wage of advisory, but not so high that it prevents you from finding customers.

The bottom line on pay advisory

Salaries Consulting out the last third of the revenue global consulting: marketing, sales, taxes, insurance, and administration all have precedence. When you start a computer consulting firm it is important that you are able to pay themselves a salary of advice that is equivalent to what you would expect to work for someone else. It may be an employer and one day you want to make sure that the wages of advice we offer will be enough to attract the talent you're looking for.

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