Common Billing Mistakes and How to Avoid Them
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Mistake 1: Compromising on the rate. Do your homework and set your hourly or per project rate fairly, and then stick to it. Unprofessional consultants allow themselves to be intimidated into accepting jobs for less and then whine, or worse: do bad work. Professional consultants say, “I’m really sorry, but I simply can’t go out for less than ___, but I hope we can work together in the future.” Mistake 2: Skipping the discount. Always include a 1% discount for payment within 10 days – on every contract and invoice. Many non-profits and government organizations are required to pay immediately if a discount is available and all smart corporations are moving to this policy. Mistake 3: Letting ego get in the way. Don’t let money or ego get in the way of the job. Sometimes you want to compromise on the rate because you like something else about the engagement – opportunity to learn a new skill or work with a buddy or work in your hometown. Write the contract with your standard rate and a discount, rather than with the lower rate. This is a powerful advantage when they want to extend your contract beyond the special circumstances that made the job appealing to you. Otherwise, you may have to try to justify a rate increase, which may make them feel you are uncooperative or don’t want to work with them. This is NEVER the way you want the client to feel. |
"Before I joined up with Consulting Stance, I had one client and was billing $60/hour. Now I have three clients at $200/hour, plus I get an extra bonus when my work makes money for them. I'm thinking of taking three months off next year. I could never have done that on my own."
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