4 ms·

Seems backwards, your friend should be the one making 200+

• 01100011 8y ago
  Why? He doesn't have to pay a sales team, marketing department, IT guy, etc. He also doesn't have a building full of engineers who he can query if he runs into something he can't handle. I would never pay an individual, regardless of whether or not they're a corp, more than I'd pay a company which provides engineering talent.
  • tptacek 8y ago
    Not that the specific number is worth litigating, but worth mentioning: a sales team, marketing department, IT guy, and all that are part of the competing consultants cost basis, and not so much the value they offer clients. Unless you're selling gypsum, for the most part, nobody is buying based on your cost basis. You're either doing something worth $X, or you're not.
    • 01100011 8y ago
      Not going to litigate the number but I will say that sales teams often do add value. They provide a human point of contact to escalate issues and manage customer expectations. They also may act as a single point of contact for flexible staffing needs - i.e. if they need a second body to meet a schedule, they don't have to hit the open market but can simply buy more engineering talent. That said, I've often felt like the sales team doesn't provide much value. It depends on the company. I will say though that companies are generally more comfortable paying a higher rate to another company vs. one guy working out of his house. There is a greater expectation of responsibility. Also, many companies will not even deal with you as an individual corporation unless certain rules are met. One rule might be that no more than, say, 30% of your income can come from the company looking to hire you. They want to see a diverse revenue stream and a well established business.