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Risk: Part of my motivation is learning something new so the risk to me isn't is big as might seem - I would get to apply my expertise in the embedded world in

Risk: Part of my motivation is learning something new so the risk to me isn't is big as might seem - I would get to apply my expertise in the embedded world instead of just desktop applications. The stuff I learn on this project will be applicable to future projects. But agree, speculative work is risky. The flip side of risk is that the last thing I want to do is take this contract without absolutely knowing that I can solve their problem. The only way to do that is to actually solve the problem. These guys really can't afford to miss their deadline. The last thing I want to do is be in the position of being blamed for them missing their deadline. Delivering a solution that saves their big project, saves them money and helps me put food on the table is win-win by my calculus. I truly consider myself a partner with my clients. I sincerely want them to be successful. I also see nothing wrong with capturing some of the value I generate. If you partnered up with someone, would you tell them "Nah, you keep the equity. Just tell your friends what a good job I did."? I know if I leave money on the table they are not going to turn around and pass the savings on to their customer or donate it to charity. Instead they will simply add my "gift" to their bottom line. (And there is nothing wrong with that.) I think a lot of people are conditioned to be "workers" who sell hours of labor. A business sells value and I'm a businessman.

trcollinson 12y ago
I understand where you are going and I have thought the same way but my experience has said to treat it otherwise. Absolutely you want to provide a solution to solve their problem which they created and which puts food on your table, no doubt. That is what all contract or consulting work is for though, this is not innovative, this is the nature of the business. To answer your question, yes I do tell them to keep the equity and to tell their friends. Now, of course, as my book of business grew so did my ability to increase my rate, for everyone. This is also why I can charge such a phenomenal rate and turn down business. For example, in 2013 I did a contact for a very large, well known organization. I made a tiny fraction of revenue that they made on the software I wrote for them. They could have easily paid me many orders of magnitude above my normal rate. But, I charged them by standard rate, completed the work, was paid on time, and definitely put food on my table. Now they call me constantly to add more functionality. Their partners call me. I speak at conferences about that particular project and people contact me. It has paid dividends. I guess you could say I sell hours of labor. I see it more as my business sells solutions at a fair market value for the work put into them. Now, I have also built products which I have sold or licensed to businesses. But that is a different beast entirely. I always tell myself "if you are building it for a single business, it's contracting. If you sell the same thing to multiple independent business's, it's a product."

trcollinson 12y ago

I understand where you are going and I have thought the same way but my experience has said to treat it otherwise. Absolutely you want to provide a solution to solve their problem which they created and which puts food on your table, no doubt. That is what all contract or consulting work is for though, this is not innovative, this is the nature of the business. To answer your question, yes I do tell them to keep the equity and to tell their friends. Now, of course, as my book of business grew so did my ability to increase my rate, for everyone. This is also why I can charge such a phenomenal rate and turn down business. For example, in 2013 I did a contact for a very large, well known organization. I made a tiny fraction of revenue that they made on the software I wrote for them. They could have easily paid me many orders of magnitude above my normal rate. But, I charged them by standard rate, completed the work, was paid on time, and definitely put food on my table. Now they call me constantly to add more functionality. Their partners call me. I speak at conferences about that particular project and people contact me. It has paid dividends. I guess you could say I sell hours of labor. I see it more as my business sells solutions at a fair market value for the work put into them. Now, I have also built products which I have sold or licensed to businesses. But that is a different beast entirely. I always tell myself "if you are building it for a single business, it's contracting. If you sell the same thing to multiple independent business's, it's a product."