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An agreed amount of money that is paid for consultancy services to a consultant.
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An agreed amount of money that is paid for consultancy services to a consultant.

Consultant provide expertise that a client lacks or support that a client is unable to fulfil. In return for their professional services, the consultant charges a fee.

Consultancy Fee means amount of compensation that will be paid at the time of the successful submission and approval of the deliverables.

A combination fee: You and your client set a fixed rate based on the project as well as time spent on the project. A performance-based rate: You charge the client based on the performance or results of your work.

How much should I charge for a consultation fee? Keep in mind, if the average consulting fees are around $100 per hour, your experience and track record will need to be taken into account. If you are a brand new consultant, you may be charging closer to $50 or $75 per hour. With 20 years of experience under your belt, you may be charging $150 or even $200 per hour.

A consultant working as a freelancer or independent contractor typically offers several payment options, including payment by the hour, by project or on retainer. Some clients prefer to be billed by the hour. Others prefer paying by project, viewing it, perhaps, as a way to prevent consultants from padding hours.

To calculate your hourly consulting rate:

  • Determine what salary you'd like to make.
  • Take that number and divide it by 52 (number of working weeks), then again by 40 (number of hours each week).
  • Take that number and mark it up by 25% to 50%.

Protect yourself: Put your guidelines in writing -- and stick by them. Have a very clear discussion laying out your professional boundaries and ask your client to do the same. Come to an understanding about working hours and response times and agree on how you will schedule calls, meetings, and Skype sessions