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Your equations are off

I can probably speak for many company owners who have steady work. We receive emails, calls and resumes everyday ALL day. Men and women seeking to find a place on the call sign list within our network. Ask anyone who has sent me the request and they will all tell you that my process is the same. Send me your bio and after I review it we speak on the phone.

20120802-082042.jpgToday’s blog is about that selective few that seek me out for consideration and during our conversations they elude to the fact that they don’t come out the house for any detail for less than $400 day or $75 an hour. First off your math is way off because there is a disparity in your daily rate and hourly rate which tells me a lot about you. Specialist like that are throwing darts in the dark and by virtue of their price points they believe that it implies 2 things:1-the are highly specialized and 2-selective on the class of clientele they prefer to work for.

Here’s the problem. A $400+ a day specialist does NOT make calls looking
for work. Companies seek them out. We already know who they are and we
seek them out for our network. Trust me Frank Gallagher is not calling companies pitching his expertise or PSD prowess. We are calling him. The same goes for experts like Elijah Shaw and Mark James.

But here is something to consider. Is it better to sit home and make nothing or work consistently at $360 a day? I’m just saying! However, there is a price window that you don’t want to go under that will set a bad precedent in your career. But in the end you have to decide whether to sit home and make marathon calls or blast out resumes.

But remember this $400+ a day specialists don’t seek details. Details seek them.

1 comment

  1. Mark Fair

    Eric,

    I usually don’t say much but I really want to share my view point on this subject due to its hopeful value to those embarking or developing a career within our craft. Like you, I find it interesting if not unfortunate for those that operate undera flawed process or valuation when it comes to the business of what we do.

    When I read or participate in blogs, conferences or forums, the chatter on what WE, US or what a COLLEAGUE, won’t or should do is unfortunately falling short, no one talks about the client or it’s psychology. As in any market the client fuels the effort and the vendor drives the product. If you don’t understand your client or respect how they typically purchase the service you will not have steady work if at all. Equally important is the plumbing or “business” of the craft. Rate structure and the ability to explain it or document it on an invoice is extremely important when dealing with major corporations.

    I believe you have discussed previously the critical need in properly applying realistic value to ones self. In doing so it needs to be done within the framework of the market. As you you know I ran Vance’s global EP business unit, you also know the transparency of my rates to clients as well as providers, like BPI. I had great success with this approach and I think you would agree, so did you. The formula for this success was a simple one; what were my costs both hard and soft, what was an acceptable margin over cost with respect to my profit/ loss statement and finally, how do I keep it competitive relative to the market.

    The reality is that MOST do not have a strictly “end user” client book, therefore one may need to offer their service to distributor like companys like BPI, Vance or GSI, we call them providers. What I am suggesting here is to have two rates, an end user rate that is competitive, and a second one that I call a provider rate that covers the individual’s cost, covers value of time invested but maximizes on a constant revenue stream. The reason this worked is that it allowed the end user provider, a Vance, to be more competitive and win the bid, thus you the individual or provider being availed to more opportunity to generate revenue due to the provider to the end user’s likely larger client book and regular work.

    There is a larger conversation on playing rate chess with clients; this is us being able to calculate and anticipate likely re-negotiations on long term details. Knowing how to play this game is critical to taking your company or self to the next level and maintaining a profitable relationship with clients and maintains specialists that want to work for you. I can feel you pulling on my chain so I am going to crawl back into my hole.

    Thx Pineapple.

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