

Ask HN: Contracting in Brazil - Sekulat

If a US software engineer would get $150 an hour with 10 years of experience in Java, what would a comparable Brazilian guy get? Any negotiation tips ? Any other tips on IP/licensing, biz culture, etc. would be much appreciated, like should I expect to be able to sell my code to someone else.
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gexla
The correct rate is that which the market will bear. I'm a U.S. citizen living
in the Philippines but I charge the same rate as I did when I lived in the
U.S. There is no reason that I should be charging less because I live in the
Philippines.

However, the market rate is higher on the world market than it is in the local
market of my location in the Philippines. If I were selling to a local mom and
pop shop in the city I'm living in, I couldn't charge much. If I were to sell
to a major corporation with an international presence but based in the
Philippines, then I could probably charge more than I charge my typical client
base. So, the answer to your question depends on your target market. Different
markets can bear different rates.

Much more important is the overall value you offer your clients, the demand
for your services (of course, great value will likely lead to more clients)
and your ability to sell. A developer charging much higher rates than most
developers might still provide a better value. The more clients you have
demanding your services, the more scarce your time becomes, and that leads to
your time being worth more. But the developer whom makes the most money is the
one whom can sell and take care of the client. The tech stuff is easy, running
a business and taking care of the clients is the hard part.

I do find there are some issues that might get in the way of a developer from
the Philippines making as much money as I do as a U.S. citizen working from
the same country. Overall the Philippines in many ways has the feel of the
U.S. from several decades ago. All of machinery which makes life in the U.S.
run so smoothly doesn't run quite as well in developing countries. Businesses
here leave much to be desired in areas such as customer service, quality
control, technical expertise, etc. The Philippines even has a term called
"Filipino time" which means "30 minutes late." When you grow up in a society
like this then it might be difficult to anticipate and meet the expectations
of clients from developed nations whom might expect more than you are
accustomed to giving.

Also, if you are dealing with a world economy still very much dominated by the
English language, you should be able to speak English well. Time zone
differences might be another issue if you are expected to be available at
certain times to certain regions. Some of these factors might lead you to
slightly lowering your preferred rates, and you can certainly charge less and
still have more disposable income than a developer in a much more expensive
area, but the cream of your industry gets cream rates.

