A lot of us are working as Consultants these days. We do not have the rights and privileges of an employee. A lot of us are sole practitioners. How do we insure that we do not get lost in the shuffle when it comes to getting the right compensation and that we get paid on time as per the stipulations of our contract?
I am hearing more and more of an issue with regards to this subject. Consultants get hired often when the company has an immediate need or there is a pressing problem confronting the organization. Quite often consultants are asked to Start Working immediately. Therefore, the terms of the contract are finalized after the work starts. Consultants beware! Here are some ways consulting agreements are negotiated:
A straight Competitive hourly rate: factor into this Rate a competitive base rate, add to that benefits and an overhead burden. If you have any kind of a specialization and if you are on your own, the current competitive rates are from $70/hour to $250/hour. Do not be shy about asking as high a rate as possible. Remember the organization wants to hire you because they have a serious need. Do not back down here. Also ask for a regular payment deal, if you go into invoicing, then get ready the collections game.
A combination of Stock and cash: the stock potential can be very alluring but be ready to aggressively manage this deal. Work out an upfront schedule of when you going to receive the stock. Most regular employees get stock right after they start working. Never hold off receiving stock until after your assignment is over. While you are on the project you have more of a leverage to get what you deserve. If you hold off till after you finish the project you can get forgotten, things change, new people come in and your ability to receive what your contract calls for gets more challenging. My advice to people on this subject is that individual consultants should develop a very secure contract for themselves spelling out items that you want to cover and have your clients sign this contract. Usually clients have a very elaborate contract for you to sign, sign that but still have them sign your contract also.
Consultants who are temporary workers often can get forgotten in the shuffle, therefore if you are a consultant aggressively manage the Business Side of your assignments. Pay as much attention to the business side as you would to subject matter you have been brought in to deal with. Be assertive and protect your rights!!!
