Hello,

9 Comments

1. AnonymousJuly 20,2022 at 3:36PM UTC

   I always charge 2x what my hourly rate of pay was when I left. So if I was making the equivalent (before taxes ), the I would charge at least $120 per hour.

   You can also do some research on the going rate for the tasks you'll be supporting.

2. AnonymousJuly 20,2022 at 3:38PM UTC

   Thank you! I appreciate your help on this.

3. Barb HansenJuly 20,2022 at 4:45PM UTC

   There are no rules in contractor pricing, you can charge your current rate, or you can charge more or less. It's okay to set whatever price you want.

   So how much do you charge?

   Here's the calculation that I use:

   I start with an hourly rate that's 1.5 to 2x what I would be paid as an employee for the work (which may be tasks that would be paid less or more than I was making previously as a full-time employee - depending on the particular task), then think about the following items:

   1."How much do I want to do this work."

   This question encompasses how much I want to help a particular company and/or how much I like doing the work or how much I need to sharpen up a skill that I haven't used in a while.

   -Answering this question might cause me to lower my set hourly rate.

   PLUS

   2."How annoying is this work going to be for me to do because I'm doing this work after working 40 hours for another company."

   -this question encompasses how annoyed am I going to be when I'm working on a Saturday afternoon when I'd rather be doing something else AND how annoying it might be to have my future work interrupted by questions or issues from the contract company. Do not underestimate the annoyance factor; it's real.

   -Answering this question will probably have me increase my hourly rate.

   PLUS

   3."What impact on my life will this "bonus" money have"

   -If I could make XXX to XXXX more dollars a month, what impact would that have on my (my family's) life. Can I pay off bills or save for a future event.

   -I like to ask this question because the answer to this question can help balance out the answer to question 2 (the annoyance factor)

   THEN, I DETERMINE

   4."What's my goal rate, and how much is the minimum that I'll work for."

   -before I present my monthly (or hourly) rate (the goal rate), I make sure that I already know the minimum rate I'll work for, so if the company wants to negotiate, I'm ready to have that discussion.

4. Jennifer ChingJuly 20,2022 at 6:32PM UTC

   This is a spot on reply! I love this advice!

5. AnonymousJuly 20,2022 at 6:54PM UTC

   Thank you so much--this is extremely helpful. I wouldn't have even considered the annoyance factor, but it certainly will be present. Thanks again!

6. JenniferJuly 20,2022 at 9:00PM UTC

   Have you cleared the contract work with your future employer? That should be step number one. Every company I've worked for has a Conflict of Interest policy that explicitly addresses what is allowed with second jobs, contract work, side hustle, etc. This applies to the potential for conflict of interest, as well as just the potential *appearance* of conflict of interest.

   If you speak to your future employer and they are cool with it, then they should be able to provide you with rules to abide by to prevent future conflict of interest.

   If they aren't okay with it, then it comes down to which matters more to you. I really discourage from just trying to do it anyway. This is something a company will swiftly terminate over.

   Good luck in the new role!

7. AnonymousJuly 21,2022 at 8:37PM UTC

   Thank you, Jennifer! I appreciate your help.

8. Kathleen LeCheleJuly 21,2022 at 11:47PM UTC

   How much is your time worth? How long does it take to produce this newsletter. To find out, assess the amount of time it took you during your work hours to get this done. If you were an hourly EE multiply your pay per hour and time it takes to produce. If salaried, find your PPH and calculate the same.

   If that number is reasonable offer that as your consultation fee.

   Keep in mind any added expenses needed that are no longer company provided, computer, internet, wifi, publishing programs, printing if applicable. Factor that in as well, or ask for utilization of the company’s VPN, giving you access to the company provided programs.

   Y.G.T. ( you got this) :)

9. AnonymousJuly 22,2022 at 6:58PM UTC

   Thank you so much, Kathleen! These are all great points and I will definitely take all into consideration.

   By the way... I love the Y.G.T.! That is awesome! :)

   Have a great weekend!