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There is a difference between 'charge-out hourly rate' and 'hourly rate of pay'. Even high end lawyers are unlikely to be paid more than one-third of their char

There is a difference between 'charge-out hourly rate' and 'hourly rate of pay'. Even high end lawyers are unlikely to be paid more than one-third of their charge out rate, unless they're partners (ie, business 'owners'). You probably took that into consideration with your response - I'm not disagreeing with you, just making it clearer. And yes, there are many jobs where the pay rate exceeds $300 / hour. In my field (business coaching - no formal qualifications necessary, though they may help) a Harvard Business Review study found the average charge-out rate is $500/hr, the top measure is $2400/hr, and most practitioners work solo so don't split that fee with anyone else.

ryanlchan 16y ago
I find this true for just about every professional services field. Hiring a lawyer, an accountant, a doctor, or a consultant often comes at a rate multiple times their own salaries. But the difference is that the lawyer was probably working 50-60 billable hours a week, whereas an escort (or a business coach, presumably) will work significantly less than that.
- hugh3 16y ago
  If you can bill $craploads per hour, why work 50-60 hours a week? I'd work 30. Maybe 20.
  - philwelch 16y ago
    Yes, this is what economists call the "backwards-bending supply curve for labor". Turns out if you pay people craploads per hour, you get fewer hours out of them, not more. This is unlike every other supply curve--if you pay $1,000 per hour of labor you get less labor than if you pay $100 per hour of labor, but if you pay $1,000 per gross of self-sealing stem bolts you get way, way, way more self-sealing stem bolts than if you pay $100 per gross of self-sealing stem bolts. The worst you get from ordinary supply curves is diminishing returns. If you paid $1,000,000 per bushel of apples, well, you're just throwing away money--I'm sure we'd max out the earth's apple-growing capacity well before $500,000 per bushel. Labor's the only supply curve that actually bends back.

ryanlchan 16y ago

I find this true for just about every professional services field. Hiring a lawyer, an accountant, a doctor, or a consultant often comes at a rate multiple times their own salaries. But the difference is that the lawyer was probably working 50-60 billable hours a week, whereas an escort (or a business coach, presumably) will work significantly less than that.

hugh3 16y ago
If you can bill $craploads per hour, why work 50-60 hours a week? I'd work 30. Maybe 20.
- philwelch 16y ago
  Yes, this is what economists call the "backwards-bending supply curve for labor". Turns out if you pay people craploads per hour, you get fewer hours out of them, not more. This is unlike every other supply curve--if you pay $1,000 per hour of labor you get less labor than if you pay $100 per hour of labor, but if you pay $1,000 per gross of self-sealing stem bolts you get way, way, way more self-sealing stem bolts than if you pay $100 per gross of self-sealing stem bolts. The worst you get from ordinary supply curves is diminishing returns. If you paid $1,000,000 per bushel of apples, well, you're just throwing away money--I'm sure we'd max out the earth's apple-growing capacity well before $500,000 per bushel. Labor's the only supply curve that actually bends back.