THE

PRICING
PLAYBOOK
FOR INDEPENDENT CONSULTANTS
Presented by
The Pricing Playbook
FOR INDEPENDENT CONSULTANTS
In this guide, you'll learn insider pricing strategies used by top consultants and advisors
across various industries and services. Mastering these strategies means gaining the
confidence to charge your worth and maximize every opportunity so that you never leave
money on the table again. Dive in to uncover these proven pricing strategies:

Hourly Rate

Retainer Fee

Value-Based Project Fee

Commission-Blend Pricing

1-Hour Strategy Session

Day Rate

Audit Fee

Workshops & Speaking

© THE UPSIDE AGENCY, LLC AND THE UPSIDE ACCELERATOR. ALL RIGHTS RESERVED.
Hourly Rate
Don't believe those who say you should never charge hourly for your time. In fact, in some
circumstances an hourly rate works to your advantage!

When To Use An Hourly Rate Secrets & Strategies

You expect to have clients who are
disorganized or demanding.
You expect to have clients who don’t care as
much about cost, but want to know you are
available for them.
Your role mimics the role of what would be a
full-time or part-time employee; for
example, you are a marketing consultant for
a firm that has no other marketing staff.
Your clients’ needs and workflow flex and
shift with changing business cycles; the
workload is not consistent month-to-month.
You expect to have an ongoing working
relationship with your clients, with no
expected end to the contract.
Implement a minimum monthly
commitment to avoid clients cherry-
picking your time. Clients will be
charged the minimum regardless of
whether or not they use those hours.
Collect invoice payments via credit card
whenever possible.
Communicate your available days and
hours in your contract to lay out
expectations and boundaries.
Avoid positioning yourself as the low-
cost leader. In fact, research shows that
clients are willing to pay more when a
consultant is confident about their value
and can communicate clear
deliverables and expected results.

Calculating Your Hourly Rate

Take the dollar amount (including bonus) that you would *ideally* make in a full-time job doing
the same work and divide by 2,000. This will give you the literal hourly rate for that annual
compensation based on a 40-hour work week.

Example: $200,000 /2,000 = $100 per hour

Then multiply by 1.5 to 2.0 depending on whether or not this is a long-term consistent client
(lower rate) or shorter-term client (higher rate) to account for your flexibility to work as they need
you, plus the health insurance, vacation days and other benefits and value that the company will
not have to pay for.

Example: $100 x 2.0 = $200 per hour

© THE UPSIDE AGENCY, LLC AND THE UPSIDE ACCELERATOR. ALL RIGHTS RESERVED. page 1
Retainer Fee
A retainer fee is a pre-determined monthly fee that can either retain a pre-determined number of
hours per month or provide a pre-determined scope of work or deliverable. A retainer fee allows the
client to retain your time and ensures you don't get booked up with other clients.

When To Use A Retainer Fee

Your competition structures their payments by retainer fees (PR firms, for example).

You expect an ongoing flow of work from your client and estimate that the hours you’ll spend
each week or month will stay fairly consistent.

The client has a clearly-defined, ongoing scope and/or deliverables.

You’re working on a large project, you can estimate the dollar amount that the job is worth to
you, and would like to structure it as a monthly retainer amortized across a set number of
months to help you (and the client) with cash flow and consistency.

Secrets & Strategies

If the client is retaining a set amount of hours, create an "overflow" hourly rate in case
the client needs more of your time in any given month. Being flexible is valuable! But
flexibility needs boundaries. Therefore, this overflow rate should be at least 25%
higher than the hourly breakdown of what they are retaining each month. Overflow
charges are then added to the next invoice.

When retaining a set amount of hours, never roll over unused hours. Keep the client
up to speed on your progress towards the end of the month and suggest ways to use
those hours if you can predict there will be a surplus.

Value-based (not hours-based) retainers work best for consultants who are especially
efficient at their work and/or deliver high-value services. However, because a client
isn't retaining set hours, it's critical to put in place strict boundaries of when and how
a client can access you.

In all cases, retainer fees are paid in advance, prior to when work begins.

Calculating Your Retainer Fee

If retaining a set amount of hours, take your hourly rate (described on page 1) and multiply by the
number of hours the client wants to retain each month. Or, if there is a standard retainer rate in
your industry, calculate yours based on the market rate of larger competitors (minus about 10 - 15%).
If you receive pushback on your pricing, remind the client that unlike a large firm, they are your
main priority and, with you, they will be working directly with a seasoned expert.

Calculating a retainer based on value, not hours, is less straightforward. Find out: what does this
client stand to gain by working with you? What do they stand to lose if they don't? What are the
potential results/ROI of working with you? What would it cost for them to hire an employee to do
the same work? Or an agency? To price based on value, it's critical to first gain an understanding of
what the problem is worth to the client.

© THE UPSIDE AGENCY, LLC AND THE UPSIDE ACCELERATOR. ALL RIGHTS RESERVED. page 2
Value-Based Project Fee
When To Use A Value-Based Project Fee
The project you are working on has a defined deliverable.

You can estimate what an outside agency would charge for the same work.

You are providing the client with an end result that has a value of 5-10x or more the cost of
hiring you.

The client is incapable of doing this work with existing in-house staff. Also, your talent,
knowledge, connections or resources are extremely valuable to them.

Secrets & Strategies

The highest-paid consultants know that this is the most lucrative pricing strategy.

“Value” is a loose term and will mean something different to every client. Be
prepared to communicate your value with hard numbers. For example:

“Yes, this project will cost $25K/month over the next 12 months. However, the work
I’m providing will ultimately generate a minimum of $3 million for your company
over the next 2 years. Let me show you how.” -or-

"Yes, this project will cost $200k. However, you told me that your end-goal was to get
to $3 million by the end of the year. This fee covers my time and costs, and helps me
dedicate my resources to get you to that $3 million mark."

A project that might be mind-numbingly simple, obvious or easy to you may be very
valuable to your client. So don’t downplay your value just because the work is second
nature to you.

Access to your network, like a simple email introduction that takes you all of 60
seconds to make, could be worth hundreds of thousands...even millions of dollars to
a client, so charge accordingly.

Calculating Your Value-Based Project Fee

Value-based pricing means determining your fees based on the total value of the deliverable,
NOT based on how many hours the project takes to complete. How do you determine total value?
Ask the client in the prospecting stage: How much do you stand to gain/lose if [fill in deliverable
here] is accomplished this year? Approximately 10% of total value is a good place to start.

For example, let's say you anticipate that your work will grow the client’s business by $2 million
over the course of 12 months (or save them $2 million or create $2 million in intellectual property,
etc.). Then a $200,000 project fee or a retainer of $16,600 per month on a 12-month contract is
reasonable.

Be prepared to show the client your value in the form of hard numbers to justify what may seem
like a steep price at first glance.

© THE UPSIDE AGENCY, LLC AND THE UPSIDE ACCELERATOR. ALL RIGHTS RESERVED. page 3
Commission-Blend Pricing
When To Use Commission-Blend Pricing
The client wants you to grow sales, raise capital or generate any type of top-line revenue.

The client wants access to your book of relationships.

Secrets & Strategies

Never work as a commission-only consultant. Doing this would require you to take
on all of the risk and the client to have zero skin in the game and absolutely no
investment in you. They literally have nothing to lose, and that doesn’t seem fair.
Here is how you to respond to these requests:

“In order for me to take on all of the risk of this arrangement and work upfront
for no compensation or investment on your end, I require a commission
structure of 50%. This is what is fair since what you're asking for is a
partnership. I take on all of the risk and you pay nothing upfront, but I have a
bigger upside on the backend, giving me the motivation I need to invest my
time, give you access to my key relationships and hit those big numbers!”

Pretty much no client will ever agree to this. But it drives home the point that you
are way too valuable to work on commission only.

Never provide top-line sales services using an hourly rate. You'll find clients who
just want to pay you for your time to pick up the phone and set up meetings with
your contacts. However, you should never underestimate the value of one 60-
second introduction that could be worth millions of dollars to your clients.

Calculating Your Commission-Blend Pricing

Offer a blended commission/retainer structure where the client pays a monthly retainer for your
services, as well as commission (10% - 20% depending on the industry) on sales / revenue /
capital / sponsorships / advertisers that you bring in.

After all, you're providing much more than just picking up the phone and making sales. You are
most likely providing advisory, strategy, marketing and other valuable services. You should be
compensated for these services in the form of a monthly retainer, and then earn a commission
as well for the revenue you bring in.

In addition, minimum commitments should always be implemented. Aim for a 6-month

minimum contract and never commit to less than a 3-month minimum for commission-based
services.

© THE UPSIDE AGENCY, LLC AND THE UPSIDE ACCELERATOR. ALL RIGHTS RESERVED. page 4
1-Hour Strategy Session
When To Offer A 1-Hour Strategy Session
A founder, or anyone else for that matter, wants to "pick your brain."

The company needs quick advice or direction.

A client wants to try you out before committing to a longer-term contract.

A potential client can't afford your retainer fees or meet your monthly minimums, but still
wants to work with you.

Secrets & Strategies

Every consultant needs a 1-hour strategy session offering. This helps draw
boundaries around requests for "brainstorm sessions" and "picking your brain";
allows you to monetize an existing pipeline of companies requesting small
chunks of your time; and it's a great way to provide all client prospects, even those
with small budgets, the ability to work with you, without diminishing your value.

Implement a system like Acuity Scheduling that automates the "book and pay"
process for someone to purchase a 1-hour strategy session with you.

1-hour strategy sessions should be paid upfront, prior to starting any work. Do not
show up before getting paid.

When a potential client (or anyone for that matter) asks to hop on a call with you
to "pick your brain" about an idea, simply respond:

"I'm so glad you asked me to share my best practices and ideas with you. I
receive so many requests for this that I have an easy link where you can book a
1-hour strategy session with me. Simply click here and we can get started at
your convenience. I look forward to speaking soon."

Calculating Your 1-Hour Strategy Session Pricing

1-hour strategy sessions are the most expensive option per unit of your time since the client
can't commit to a longer-term engagement with you. Take your hourly rate (from page 1) and
multiply by 2 or 3. Most 1-hour strategy sessions range from $400 - $1,500+ depending on the
industry and your level of expertise.

© THE UPSIDE AGENCY, LLC AND THE UPSIDE ACCELERATOR. ALL RIGHTS RESERVED. page 5
Day Rate
When To Use A Day Rate
A company needs you on-site for a full day, periodically, randomly and/or on demand.
They need your expertise, which will require approximately 6 - 8 hrs.
A client wants to try you out before committing to a longer-term contract.
You’re working with a founder who doesn’t have a long-term budget for your services.
A client needs you to travel on behalf of their company. This is especially critical if you have
a retainer agreement where the monthly fee doesn't change but travel requirements may
come up. In this case, you can establish a "travel day rate" in the contract as an additional
fee any time the company needs you to travel on their behalf.

Secrets & Strategies

Day rates should be paid upfront, prior to starting any work. Do not show up
before getting paid.

For one-off engagements, implement a system like Acuity Scheduling that

automates the "book and pay" process.

When a company can't afford your retainer fees or long-term rates, simply reply:

"I completely understand that you may not be in a position to hire me on

a monthly retainer. This is why I also offer a day rate of [$2,500] so that
companies like yours can still get a ton of value from me, but scaled to
meet your budget and immediate needs."

Calculating Your Day Rate

If a client is unable to commit to a long-term contract, then you must charge a premium for
your time for short-term engagements. Calculate your day rate the same as you would your
hourly rate and multiply by 10 - 15x. For example, if your hourly is $150, your day rate can range
between $1,500 - $2,250.

Or, if you are providing something truly unique and highly-valuable, like as discussed in Value-
Based Project Fees, then consider charging a rate of ~10% of the estimated total value.

© THE UPSIDE AGENCY, LLC AND THE UPSIDE ACCELERATOR. ALL RIGHTS RESERVED. page 6
Audit Fee
When To Use An Audit Fee
A company wants your analysis on something, but is not ready to implement.

A company wants a strategic plan or report from you, but may or may not want to move
forward in hiring you to implement it, either for budget reasons or they still aren't sure
what they need (or if you're the right fit).

Secrets & Strategies

Audit fees should be paid upfront, prior to starting any work. Do not start before
getting paid.

Avoid pricing audits based on time spent. Because there is a clearly-defined

deliverable (an audit report, business plan, strategic plan, etc.), view the audit fee
similar to Value-Based Project Fees.

Even if you know an audit takes you only 3 days, spread the project across a longer
period of time (4 weeks for example) to give the impression that your audit is in-
depth and highly valuable. Plus, many clients think about revenue and expenses in
terms of "months." If you price your audit high and the delivery is 4 weeks, they will
look at the cost in terms of monthly budgets and figures. This is to your advantage!

Make sure the final deliverable is spelled out in great detail in the Scope of Work.
Include a section called "What will be considered a success" to outline and
communicate what you and the client consider a successful audit deliverable.

Treat the audit as a Part I of working with the client. The goal is to deliver the audit
and upsell the client on hiring you to execute the audit's plan of action.

Calculating Your Audit Fee

The value in an audit or strategic plan is not in the time it takes you to do the work, but in the
total value the company gains from the deliverable. What do they stand to gain with the
information you're providing them? What do they stand to lose if they don't have this
information?

For consultants who are subject matter experts with a high level of knowledge and experience,
$15,000 or higher for a 4-week audit is a good starting point. Examples of deliverables include:
an audit of a company's workplace policies, a strategic growth plan for the next 12 months, or
an analysis of a company's revenue streams and profitability.

For small audits like a review of a client's paid ad strategy or an analysis of their website UX,
scale the pricing accordingly. The equivalent of one month's retainer fee is a good place to start.
So if your normal retainer fee is $10,000/month, your audit can also be around $10,000.

© THE UPSIDE AGENCY, LLC AND THE UPSIDE ACCELERATOR. ALL RIGHTS RESERVED. page 7
Workshops & Speaking
When to implement a workshop or speaking offering:
You are a subject matter expert.
You have an inspiring story to tell.
You focus on organizational change, leadership, teams or corporate culture.
You facilitate training programs.

Terms & Tps

Speaking and workshop fees should be paid upfront, prior to starting any work.
Do not start before getting paid.

Every consultant should have a workshop or speaking revenue stream. This

diversifies your income and can attract even more high-paying clients.

Workshops are typically held at companies. Speaking can be for companies,

universities, associations or conferences.

If you're speaking at a conference filled with your target clients, you do not need
to get paid top dollar (or at all) to speak. That's because this is essentially a free
infomercial with a captive audience where you will use the stage to attract many
eager clients who are excited to work with you.

Workshops with senior executives command more money than workshops with
lower-level managers and employees. Additionally, larger workshops with big
groups can command more money than workshops with a small handful of
employees (unless they are senior executives, in which case you can charge top
dollar!).

Do not charge per person fees for workshops, unless you are hosting your own
event and charging for entry. Instead, think about the total value of the result the
company will walk away with after attending your workshop. Will the sales team
sell better? Will the lawyers negotiate harder? Will the teams work better
together? Will the company avoid expensive lawsuits after your training session?

Calculating Your Speaking or Workshop Fee

Workshops and speaking fees vary greatly, and there are no universally-accepted rules for what
these fees should be. However, keep in mind that speaking budgets at large corporations start
at $3,500 for a 1-hour talk. Anytime you speak at a company, regardless of the size or status or
that organization, you should be compensated. Meanwhile, workshops can range from $5,000 all
the way up to $50,000+ depending on the size of the audience and your expertise. Workshops
can last an hour, or a full day, depending on your structure and offering.

Whether virtual or in-person, pricing is the same.

© THE UPSIDE AGENCY, LLC AND THE UPSIDE ACCELERATOR. ALL RIGHTS RESERVED.
 Erin Halper
CEO, The Upside

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