In today's economy, you are likely experiencing a decrease in the amount of consulting projects you are doing. Obviously this results in a decrease in your income. Many people think now is the time to discount their fees, but don't make this mistake.
If you work at reduced rates many people will always expect you to work at this rate and you will gain a reputation as a cheap consultant. This is not a bad thing, but it can seriously hinder your future earnings. So here are six tips to help you increase your consulting fees.
Tip #1: In your proposal give them several options to choose from. Start with a base fee and then have three options to choose from, each one more expense because it contains more value to the client, like sales training, etc.
Tip #2: Think several projects ahead, most of your business should be repeat business. You should establish yourself as a high quality consultant from the beginning of the relationship. This means not cutting your fee and charging an appropriate amount for your time. Discounting your services at the start of the relationship makes it more difficult to charge more later on.
Tip #3: Charge by the project and not by time. Charging by the project can make you much more money than by the hour if you know how to do it. Many people underestimate how long a project will take so be careful of this trap.
Tip #4: Have your own training manuals printed. If you regularly recommend books or manuals that companies purchase when you work with them, why not have your own version printed up. This is an easy way to increase your income.
Tip #5: Increase your passive income with books and tapes: If you have a good consulting system that translates well into a book or tape why not have it made up. You should always be working on building up your passive income like this.
Many consultants make more money on their passive income projects than they do on actual consulting projects. This should be your aim as well.
Tip #6: Base your fee on your results. Instead of just basing your fee on a completed project which locks you in at a set dollar amount, why not base it on a sliding scale of results. This way there is really no ceiling on how much money you can earn.
If you have confidence in your system then this should not be a problem. If you have a proven track record of your system performing well take this route in the future and see how well it pays off.
You should always be testing new ways to increase your fees. If year after year you are still charging the same way you are leaving a lot of money on the table, money that should be in your pocket.
Try using these six tips and you should see a great improvement not only in the size of your consulting fees, but also the bottom line of your practice.
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