How much to charge for services and how much to pay for services can be a time consuming due diligence task if you are not aware of your value and environment. It is also a tough sell if perceived value and trust is not where it should be - your brand. In other words, price can be an easy indicator of fit or deal killer early. The fear of paying too much or too little is found out over time. Too little results in lack of motivation and active searching for a better fit; too much holds poor expectations resulting in adjustments (firing) over time.
That said, there are multiple ingredients to what makes a fair compensation agreement. It is a good idea through negotiations to learn all parties motivations. Unique benefits and risk/reward scenarios come into play - understand what a true win:win looks like.
Traditional employer/employee situations have ranges that are easily understood so skills vs. needs tend to find each other rather easy. Salary.com and the 2008 Inc Magazine Executive Compensation Guide will give you an idea. Look for these studies each year for trends. If your personal brand shows an obvious premium or learning curve - negotiate appropriately.
Consultants have other cost and cost savers for the client to consider. The otherwise salary being replaced is a starting point. Consider business development and other non-paid time in your equation and know how your higher rate saves the client company money under traditional hire situations - your value proposition.
Finally there is your products and services and how they should be priced in the market. Not much changes here. The market will help determine your price and you help communicate value in terms of ROI. If you offer something new to the market, clearly more research and testing may be required.
Happy negotiating!
" There is No ing in Brand" series continues with more about each brand manager topics identified - stay tuned!
That said, there are multiple ingredients to what makes a fair compensation agreement. It is a good idea through negotiations to learn all parties motivations. Unique benefits and risk/reward scenarios come into play - understand what a true win:win looks like.
Traditional employer/employee situations have ranges that are easily understood so skills vs. needs tend to find each other rather easy. Salary.com and the 2008 Inc Magazine Executive Compensation Guide will give you an idea. Look for these studies each year for trends. If your personal brand shows an obvious premium or learning curve - negotiate appropriately.
Consultants have other cost and cost savers for the client to consider. The otherwise salary being replaced is a starting point. Consider business development and other non-paid time in your equation and know how your higher rate saves the client company money under traditional hire situations - your value proposition.
Finally there is your products and services and how they should be priced in the market. Not much changes here. The market will help determine your price and you help communicate value in terms of ROI. If you offer something new to the market, clearly more research and testing may be required.
Happy negotiating!
" There is No ing in Brand" series continues with more about each brand manager topics identified - stay tuned!
Comment Preview