

Want to start work as a consultant – what should I watch out for? - shazam

I&#x27;m potentially going to start work on my first independent consultant job, but I was hoping to hear from others experienced in this area about what to expect in terms of standard agreements.<p>Do most pay all at the end or can I ask for half upfront? What is a standard rate per hour? Finally, should I agree to this: http:&#x2F;&#x2F;pastebin.com&#x2F;7m2xBjLg
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tptacek
Don't bill hourly.

Incorporate.

Never reduce your rate; cut project scope instead.

Every project worth doing is worth writing a statement of work.

A good SOW includes acceptance criteria.

Don't expect to work on your own paper; clients will require you to sign their
contracts.

Get a lawyer, have them review every contract you sign. (This is why there are
MSAs and SOWs.)

The lawyer advises, they don't decide.

If a lawyer is too expensive, your rates are too low.

Also, your rates are too low.

Don't position yourself based on tech stacks. "Node.js consultant" is a crappy
differentiator.

Don't set your rates based on your previous full-time salary. Your rate is
barely even _related_ to your salary.

Get health insurance.

 _Do not fuck around on taxes_. You owe them quarterly.

Serious consultancies don't demand up-front payment. Do what you need to until
you get serious, though.

Finally: you need a lawyer to evaluate that clause. It could be a boilerplate
IP assignment, or it could be a blanket concession that your client can file a
difficult-to-dismiss lawsuit against you any time for all time.

If this project isn't worth the $200 that will cost you, it's not worth doing
at all.

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yellow_and_gray
This is useful advice. Thank you.

How important are references or building a portfolio? And what do you tell
clients to convince them to pick you and your rates?

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saluki
I would watch out for . . . prior to or during the term of this Agreement . .
. the prior language doesn't sound quite right . . .

I typically work with multiple clients not a single client so I include in my
contract that I retain the right use portions of the code provide as a
deliverable for previous, current and future clients but will not re-use their
code in it's entirety. Typically projects have some portions that are standard
and re-used over and over . . . occasionally a client will request I agree not
to re-use their business logic specific code and that's fair . . .

I would recommend asking them to change the wording to they only own the
code/patents of work developed specifically during working hours for their
company and projects and that you hold the rights to any code and IP developed
on your own time and all work prior to your agreement. Using a more modern
standard agreement would probably be a better starting point . . .and having
an attorney review it would be recommended before signing anything.

As far as a rate . . . I would google similar job listings . . . without much
knowledge of your position I would expect $100 to $200/hr . . . but I would
get the IP agreement worked out at the same time as your salary . . .

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pbnjay
For small contracts, I usually ask for half up-front and half at delivery.
Medium-size might be in thirds with the second payment invoiced when they get
the prototype. For large contracts I tend to do monthly payments with a little
bit of front-loading (ex: for a 100k project over 6 mos, 20k x 2 months and
then 15k x 4 months).

Your hourly rate is entirely dependent on the project, skillset, and
experience. A small PHP-only developer cannot command the same rate that a
full-stack backend, frontend, and iOS developer might. Delivery timelines also
play in - if they want it next week there's a premium.

I'd avoid that agreement, it's overly broad. I try to make mine assign on full
payment / completion of project and cover only the work performed for the
contract. If I can swing it, I try a non-exclusive license instead of full
assignment as well, which allows me to reuse code.

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redtexture
The contract specifies that any knowlege or work you did prior to the contract
that you used to fulfill the contract is owned by the company. This is a
method to become impoverished, and have all of your related prior knowledge
and work owned by the company, causing you to be unable to do similar work for
anyone else. There is no future to any of your knowledge and work related to
work you did for the company, except by the permission and whim of the
company.

Do not agree to this contract.

    
    
      "Consultant agrees that all...conceived, discovered, 
      authored, invented, developed or reduced to practice by 
      Consultant...prior to or during the term of this
      Agreement...and arising out of, or in connection with..."

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MalcolmDiggs
If I've never worked with the client before I always ask for 50% up front. No
exceptions. Once we have a relationship I _may_ lower that, but it's not
guaranteed.

Price yourself so that: _if_ that 50% turns out to be the only money you ever
receive from them, the job will still have been worth your time.

Keep your clients at arms-length. They are _not_ your friends. Never allow the
scope of a project to be changed based on a conversation or a phone call,
anything that could get you sued needs to be in writing. Be very strict about
this.

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JSeymourATL
Look up Consulting Guru Alan Weiss, brilliant advice applicable to general
consulting, tons of content, sign-up for his e-newsletter>
[http://www.summitconsulting.com/](http://www.summitconsulting.com/)

Also, suggest reading his recent release on launching a consulting practice>
[http://www.amazon.com/Million-Dollar-Launch-Kick-start-
Succe...](http://www.amazon.com/Million-Dollar-Launch-Kick-start-
Successful/dp/0071826343/ref=la_B000AQ0PNG_1_5?s=books&ie=UTF8&qid=1412269482&sr=1-5)

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CyberFonic
Read:
[https://news.ycombinator.com/item?id=8395422](https://news.ycombinator.com/item?id=8395422)

You could encounter such problems locally as well. I certainly have. Do not
let such issues deter you. Just be aware that not all clients conduct
themselves ethically. You need to protect yourself.

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aob
It would be helpful to know what area you will be consulting in. That will
help us to give pointers, suggest rates, and determine if that agreement makes
sense for what you will be doing.

For example, that agreement may be ground for a company to claim rights to
software you develop on your free time while you are in their pay.

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shazam
That's what I'm worried about. I'd be acting in a data analysis/software dev
role. What can I do to change the language?

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vishalchandra
1\. Well defined tangible deliverables (project requirements) are a must for
any fixed cost projects.

2\. Either the client prepares the requirements document and you review it or
you bill the client to prepare a requirements document.

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subdane
Search for "consulting agreement" on Docracy, that will get you started
[https://www.docracy.com/](https://www.docracy.com/)

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shazam
Thank you. I see that most agreements have the same sort of language about the
company maintaining ownership of all work...

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virtue3
you are being contracted out to perform a service that will be entirely owned
by the entity you do the work for.

That's the essence of contracting. It's not really any different than working
at a company that also owns everything you do on the companies time.

