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You're absolutely right. Higher rates align incentives because they make the provider more vulnerable to reputational effects. If you're targeting $150+/hr pro
by morgante 11y ago
You're absolutely right.
Higher rates align incentives because they make the provider more vulnerable to reputational effects. If you're targeting $150+/hr projects, you can't use online platforms to find clients. That end of the market simply depends almost exclusively on reputational marketing (referrals, industry contributions, mindshare).
Hence, as their continued ability to get contracts depends on having satisfied customers, higher-priced shops have an inherent incentive to deliver quality. As opposed to low-end shops who are just scooping up clients with their low rates and therefor have no quality incentive.
- ep103 11y agoThis is questionable though. My first company was an onshoring consulting firm, and I know I was rented out for 197/hr, yet this was still 100% their business model.
- gizi 11y ago> If you're targeting $150+/hr projects, you can't use online platforms to find clients. Not true. I make $150/hr. The client found me online and we work entirely online. Furthermore, it is a deeply-discounted rate because I have 15% of the startup's shares.
- kami8845 11y agoThe article is talking about working with dev studios & outsourcing large-ish projects. If you're a singular developer charging a flat hourly rate (I am too), yes posting on the web will likely fulfill your needs. If you're a dev studio looking for your next $50,000 project, probably not.