The value of a consultant
How much should you pay a consultant?
- Scarcity - how unique is the consultant's skills? Are they a social media consultant, for example, of which many exist, or the only technical expert that understands a particular process in your business? Are what they know in short supply? The scarcer, the higher the fee.
- Potential - how good is the consultant? Do they have a track record of working on similar projects before? The more experienced a consultant is, the greater the potential impact of their involvement and the higher fee.
- Impact - the significance of the project that the consultant is working on. What will the effect of the project be if it all works out? Will you double your revenue or only save you a bit of effort? The more important the project, the higher the consultant's fee should be.