If there is free money in US with little one time effort or just with nice talk and networking, it is just by having your own consultancy or working with a consultancy. The amount of money you make by having a consultancy is UNBELIEVABLE. It is a CASH COW !!!
If you are in the consulting business, you might know this, but if you are not…read the article….
If you are not familiar with consultancy jargon like vendor, client, consultant refer to this post. Consultancy Jargon Who is Vendor, Client, Consultant ?
Here is the way it works : The client wants a project to be implemented and he needs skillful people. He will say, I am willing to pay $100 per hour to a qualified guy with the technical skill set. They send out an Ad or email to the prime vendors, the prime vendors then send out the same email ( taking of the rate and client info of course..! ) to other consultancies. What they say is, we have a position and ( they do NOT mention the client name ) we are willing to pay $ 70 – 80 an hour for a qualified candidate. Also, they post Ads on Dice.com, CareerBuilder.com, Monster.com etc. Big Consultancys now supply the technical skill set resumes to prime vendors and if they do not, they will send out an email to smaller consultancies saying, we have a position and we are willing to pay $ 50 – 55 per hour.
Average money distribution if the Consultant is paid $100 per hour by the client. This is pretty close in reality.
Money Paid in Dollars
Minimum Profit Margin
of the Original amount
Money per Year in dollars if the rate was $100 per hour
Source of Money
Employee or Consultant
35 – 40
Of the total $ 200,000 given by client in an year $120,000 (65 % of source money) dollars is taken away by various consulting companies as they act as Layers.
If you want to take some of that $120,000 dollars, all you have to do is OPEN A CONSULTANCY.
All consulting companies do is marketing, they send resumes and find people who have the skills. If you have been in industry for some time or if you know lot of people in Industry, you can get the right candidates. So, it is a very easy way to find someone. Once the deal is signed up, ALL YOU DO IS NOTHING. Just send Time sheets to Client or vendor and count the money. Give a part of money to Consultant or employee as salary. This is where your skill comes in, if you know all the above process and how much they eat, you better negotiate well with your employer. Here is the previous article I wrote on negotiating How to Negotiate Salary and Benefits as Consultant with Employer
Because of so much money paid by client, the vendors say if you find the right person, we will give you 5% on the total ( that is $10,000 per annum ), Similarly big consultancies do the same…so, even if you do not have a consultancy, if you have good connections, you can still make MONEY. So, just NETWORK !
Also, because of so much money involved and everyone is trying take some margin, it is good for consultant to be on the higher level to make more money. So, people keep jumping from one consultancy to other to get more money….
After reading, Are you planning on starting one consultancy ? Get some of that free money ?