Ask The Expert (FAQs)

December is a very slow time for consulting.

I wouldn’t consider my data reliable but firms I talked to have a 10-60 percent range of net income. Those that are small, 1-3 people or those over 40, seem to be at top of scale. Some phenomenon occurs at 15-30 people that prevents economies of scale from producing higher percent return.

Computer consultants are in huge demand wherever I go. Let me rephrase that, “Good” computer consultants are in huge demand. If you are good, you can name your price and name the place you’d like to work. The computer consultants with whom I interact that are the most successful are the ones who build relationships, communicate often and well, and have honed their people skills. Since many good computer consultants are analytical types this takes some work, practice, and learning to be flexible.

There are a number of routes to getting published. I assume you are asking about non-fiction work, since there is much more competition to get fiction work published–and I have no experience. Follow these steps to get a book published.

1. First find out if there is a need for your book. Go to a book store or a library and survey the books to determine if there is a gap to fill. While you are looking, if you see anything similar, make note of the publisher, theme, approach, focus, etc. A publisher is going to ask you to submit this information with your proposal anyway, so you may as well do it now.
2. Compare your book to others and figure out what is different or better. You’re going to need to sell your idea to an acquisition editor.
3. When you were doing your research in step 1, you should have determined which publishers may be interested in your topic. Write to them to obtain their proposal format. All publishers will ask for similar things (approach, what’s unique, who’s the audience, a table of contents, a sample chapter), but each will have a slightly different format.
4. Complete the proposal and send it off to one or more publishers. Write a cover letter to a specific acquisition editor (they will also be listed in the front of the books you examined in step 1) stating that you will follow up with a call the next week. Then do so!

By the way, if you are thinking you will get rich writing a book, it is unlikely. I have written and edited over two dozen books and it has been mostly a break-even endeavor for me. I write for other reasons, mostly because I love to do it.

If you are interested in publishing an article in a magazine, write the magazine and request a publishing calendar. Most magazines focus on a theme for each issue and the calendar will tell you which issue may be the best match for your article.

Good luck!
Elaine

I suggest you try the American Society for Training and Development (ASTD). They have a national chapter and regional chapters. Their website is: www.astd.org. It doesn’t matter if you want to be a self-employed consultant or work as a consultant under someone’s employment, this is the best $150 a year you can spend. You will meet and network with other consultants from your region or from all over the world. I’ve been a member of ASTD from the beginning of my career and find their service invaluable. Also, the ASTD Membership Directory is a good place to start if you are looking for a job in the consulting field.

I am not adding consultants to my staff at this time. I do occasionally use subcontractors on large projects when additional manpower is needed or to fill specific qualifications required by a client that I do not possess. I only use people that I know well and have worked with in the past. That way I can ensure they have the qualifications and experience required by the client.

Wow this is a new one!! But certainly one I should have seen coming!! First, you are right about the earlier situation, certainly “act more like Z-M” and you will probably still be a bargain. On the other hand, you weren’t that far off in pricing, especially since you had already used them in sessions yourself. And after five years, the materials probably needed to be revised. Second, if the materials are those that you have been paid for, I agree that they should not need to pay you again. However, to protect yourself and them, I would ask if they would be willing to add your contact information in a footer on EVERY page, perhaps, “designed by LL, for the express use of company name, please contact LL at e-mail for further information.” You aren’t charging more, but then again, you did not initially agree to them placing it on their intranet. I would also request that they not be placed on the Internet, although, you may not have much control over them once you allow the company to put them on their own system. Third, if the materials have NOT been paid for by the client, I would first establish some clear and agreed to (read that: a signed agreement) guidelines. I would suggest if they are pages that you still hold the copyright to the organization should agree to:

1. Use materials on their internal Intranet ONLY.
2. Include your copyright, logo and contact info on every page (could easily be in the footer.)
3. Display on pages that cannot be adapted/changed/altered on the site (Read-only pages) (although of course you cannot do anything about people who will download and re-enter which is a problem for any of us who design. (I always thought that when individuals try to delete a copyright icon, their keyboards should freeze, smoke should roll out of their monitors and their hard drives should have a major meltdown!))
4. Select between two payment methods. 4-A: Pay you a flat fee per year. This is the tricky one. You will need to find out how the materials will be used. If they are follow up references after you conduct a training session then a minimal fee. If on the other hand these materials take the place of you and will be a training substitute, ensure that employees and employer will benefit by the materials, and will be used as an e-learning opportunity, I would charge according to the size of the organization and determine how many employees would potentially use the materials. I would also place a value on the benefit to the company as well as a potential savings from not having to pay you to deliver the materials. I would establish a table so that you could share it with them. For example, companies size 0300 pay $750 per year; 301750 pay $1875 per year; 7511500 pay $3750. You will need to figure out the formula. The formula I used was: take highest number of people, assume 25% will use the materials (based on their job responsibilities, turnover, etc.) and multiplied by $10 per person. You can devise any formula that makes sense to you. 4-B: Pay you on a “pay for use” plan. Program the site so that it counts “hits” for visiting or counts the number of people that complete the “course” (if that’s what it is). In fact, if it is a course, you may offer a short “test” at the end. After people successfully complete the test, the program automatically prints off a certificate. Or they submit a copy of the successfully completed test to you or the HR department (by email) who sends back a certificate. In this case you would charge a higher price than 4-A above. Simple “hits” might be $20 each or if course completion and certification are expected, perhaps $40. The comparison for the pricing that I would use is “if they had you teaching the course in person, how many people and at what price?” I would try to keep it at or below 50% of that cost. For example, if you taught this 2-day course at $2000 per day for 20 people, the cost would be $200 per person, so the certified intranet cost should probably be $100 per person or less. You would also need to consider how much 1:1 with you for participants would be lost. If lots, you will need to adjust the price downward accordingly.
5. One last thought, if this is to be an e-learning opportunity, the materials probably need to be adapted for that use. You could offer to do that for a fee of course. Hope this helps. Let me know what happens!! I am working on a new book this month marketing and selling for consultants. Got any words of wisdom or ideas I can include???

It’s important to keep yourself in front of your clients (and potential clients) by ensuring that things periodically go across their desks, for example, articles, notes of interest, books, announcements, cards, seasonal greetings, or even cartoons! Find a reason to send something. And keep sending things periodically in various formats. (Don’t just send email.) The object is to keep your name in their minds. I’ve sent an article to 80 people and had only one CEO call me back and say, “I was thinking about you the other day and then you sent me an article you’ve got great timing! Let’s get together.” And that’s what it’s all about keeping yourself in front of your clients.

In The Consultant’s Quick Start Guide I did say: “All the good consultants I know have more work than they can handle. I believe there are at least two trends behind this. First is the trend toward outsourcing more and more services. Corporations continue to hire more temporary professionals to assist when needed, as opposed to adding highly paid, permanent staff. Consultants can temporarily provide the people power to complete the work at the time it needs to be completed, allowing organizations to avoid long-term costs or commitments. The second trend is related to the rapid technological changes occurring in the world. The explosion of knowledge and fast pace of communication make it nearly impossible for an executive team to remain completely knowledgeable about its industry, focused on the customers, and ahead of the competition; nor may the team know instantly what to do when these factors collide negatively. Consultants offer the knowledge, information, data, and systems to solve the puzzle.”

4. Complete the proposal and send it off to one or more publishers. Write a cover letter to a specific acquisition editor (they will also be listed in the front of the books you examined in step 1) stating that you will follow up with a call the next week. Then do so!

You could call them and request they send you their company brochure. Also ask them to include their vision and mission statements.

That’s true most companies are not looking for another employee. They are looking for someone to fill a specific need or correct an existing problem. It’s up to you to show them you can fill their specific needs. It’s up to you to show them you are a good investment. Here are five reasons consultants are a good investment:

1.  Consultants have the experience, expertise, and time that employees may not. Organizations have difficulty hiring enough good people to keep up with normal, ongoing tasks. Organizations turn to consultants to fill the knowledge and time gap for special projects that arise. Consultants bring experience and expertise from past projects and other organizations.
2. Consultants provide flexibility. Consultants can be brought in for short-term projects. Unlike hired staff who will require ongoing paychecks, benefits, and severance packages, consultants serve their purpose, and are gone.
3. Consultants offer a fresh, objective point of view. With hundreds of other projects under their belt and valuable experience in dealing with an array of situations and personalities consultants are able to provide unbiased, fresh ideas.
4. Consultants are more efficient. Consultants are more efficient for three reasons: 1) they bring experience with similar problems with them; 2) consultants have the luxury to focus solely on the assigned project or problem; 3) consultants do not need to deal with the organizations internal politics and tasks
5. Consultants may be proof of honest endeavor. When other parties are involved, a consultant may serve as a sign that an effort is in progress. Hiring a consultant shows that an organization is trying to correct an existing problem.

Sorry it has taken me a while to respond. The truth of the matter is that I am amazed at your predicament.

The marketing manager is way our to line. Yes, there is a big conflict of interest issue and she is even a part of a law firm! How brazen!

Philosophically, some consultants do practice charging/giving a finder’s fee. And 15% is about right. I have never done this. I believe that what goes around, comes around. If I recommend someone to another consultant I believe that consultant (or others) will also recommend me for work. Truth is I have always been busier than I can manage, so something must be right.

back to your difficult situation. I think that you could get yourself in trouble with the law firm if you agree to pay her the 15%. You may wish to do all or some of these:

1. Educate her about the conflict of interest issue.

2. Tell her about your discomfort.

3. Ask her if she has discussed this arrangement with the partners in the law firm.

4. Explain that you do not philosophically believe in finder’s fees (if this is true, of course.)

5. Apologize to her for the misunderstanding.

Congratulations on a “great and promising” year! Please keep me posted about how this turns out!
reader is an owner of a new consulting practice.

This depends on the contract. Subcontractors get anywhere from 92% (I felt sorry for the client) to 40% of the billed amount. That amounts to 35-80% of their full fee.

What you have requested is certainly appropriate.(I might even be tougher and not waive the assessment if they hired me.) So I say stick to your guns. You need to emphasize that these are the same terms you use with all your clients and to do something different for one and not all clients would be outside your organization’s values. I say they have asked you to do the unethical. Good Luck.

There is no simple answer to this question. I recommend that you NEVER put the final total in as a figure. Here are three options: 1) Do a breakdown in phases (I, II, III) with totals after each phase. 2) Or break down by departmental work. 3) Or break down by month. I prefer the 1st method because you can offer a narrative for each phase. And remember, the sticker price may seem large to you and a large organization used to doing large contracts may not even bat an eye at the amount.

It is normal to restrict subcontractors from accepting work (on their own behalf) from clients referred/connected as a result of being a subcontractor for two years following the work.

Internal consultants were salaried and had options to earn 15 percent extra commission for acquiring new contracts. Their salaries were about 45 percent (too high) of billed dollars.