How to set a consulting budget today!

In the past few months I have been approached by many other SEO’s thinking about getting into the consulting world. While is seems glamorous, it is freaky as hell if you have a family and you are the sole earner. Remember that you have to pay taxes, hire a good accountant that won’t rip you off.

You have to not only pay taxes, but health insurance, and fund your own retirement as well.

So break it down. How much do all of your bills come up to right now and include your retirement and taxes?

Lets just supposed for an easy calculation that your costs per month equal out to $3,000 per month and that is including all of your costs. Use Mint.com to see what you are actually spending your money on. Now you are making 3K, now it is time to break down what you need to make per month to equal that price. Keep in mind you might have to go a few weeks between jobs.

Income Hours HrCost What you should charge per hour
3000 40 75 $85
3000 80 37.5 $48
3000 120 25 $35
3000 160 18.75 $29

Now are these numbers locked in? No. They are relative to how many years experience. If you only have 2 years, I would not go on your own, stay in-house or with a firm. There are many values of what you can charge. My own rates are more than what I showed above. Some people charge by the hour, week, month, scope and even the location. I also look at a site to see of it has ever had a penalty.

The biggest thing is that all numbers can shift, never hold hard and fast to a number, always be flexible and work with your clients so that they will recommend you onto other jobs.

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