How to Determine Hourly Rates for Independent Consultants

Note: At the end of this post I refer to “Freelance Switch”. They have changed their company’s name to Envato. You can find their archived content here:

In this economy in the USA, more and more people are starting their own independent consulting businesses. Freelancers and freelancing are growing in numbers each year. So, it’s no surprise that an “old” presentation of mine is still popular. It receives a lot of Views and is “Favorited” often by other SlideShare users.

While I’m working on some upcoming blog posts, I thought I’d take time today to share my presentation on this page with you. The information is still true and current. The economy produces challenges for small businesses. But, hang in there. You can do it. Believe in yourself. Work hard. Good luck!

Hat tip and heart-felt thanks to:



More Businesses Are Using Freelancers

The “Secret” Is Out!

Some in our culture are talking about secrets, or The Secret. However, in these challenging economic times of 2009, with bailout after bailout, runs on bankruptcies, layoffs by the thousands, market downturns, … (okay, I’ll stop now.), I do look for and find good news! This past week, I stumbled upon freelance news at’s Living section.

Businesses Are Hiring Freelancers!

The gems I want to pull out of the article for you are these brief points.

Businesses benefit most with freelancers when they:

  • are project-based with one-year cycles.
  • need work for a short time; it’s easier to hire a freelancer than getting an internal position approved.

Businesses who hire freelancers don’t have to:

  • purchase benefits.
  • pay payroll taxes.
  • buy new equipment or programs, nor upgrade licenses.
  • find work space for a new worker.

Click either the image or the link to read the article: More Businesses Using Freelancers

Looking Ahead to 2009

Businesses will be going through tumultuous times this year. One of the best things that they can do for the employees who remain (and who are doing the work of their laid-off colleagues on top of their own tasks), is to bring in a proven freelance consultant. That freelancer can help keep the business’s products and services flowing through the profit channels to their loyal customers.

I’m “Always Learning” and researching interesting topics, so I’ll share a few more links with you!

CareerBuilder: Advice & Resources:

“Trend No. 7: Freelance or contract hiring

To continue their cost-cutting efforts, employers are using freelance or contract workers to help support their businesses. Twenty-eight percent of hiring managers expect to utilize these workers in 2009.” (Article URL no longer available.) St. Paul Design Firm Changes Name, Expands (Article URL no longer available.)

My Notes: Owner Renita Van Dusen says that she’s going to hire freelancers for awhile for her growing business. Why? To avoid the pain of laying off employees. I do want to emphasize that layoffs are very hard on the managers who have to give their staff the bad news:

“Despite her rising revenue, Van Dusen has decided against her earlier plan this year to expand her staff by one or two employees. The economic fallout of the past few months has her feeling nervous.

She never wants to be in the position of laying off employees because her business grew too fast, so she’s relying more on freelancers. “I’m just trying to be very careful,” she said.

May 2016: The economy in the USA has yet to improve. I have had small business owners tell me sad stories of converting their FTE staff to 1099 contractors, then -a  year later- having to go through a layoff. Businesses are still nervous.