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Help Pricing Contract As Consultant To Publisher

Posted by Anonymous on 9/30/2008 at 8:07 PM ET 250 Points
I am a former executive and producer in the film business. I have been asked to work as a marketing consultant to an international publishing group on a specific project. I would serve as a liason between the artist, the publishing team and outside contractors such as pr and advertising firms, and media outlets. I would oversee the launch of the project and develop ancillary business opportunities with publisher and artist. The scope of the project is quite large - launch first in the US with Europe to follow. I need advice about how to price my services, leaning towards either a monthly retainer or flat fee, although now it's hard to say how long I will be needed. I would like to get a sense of the range for such services, given there are discussions about developing a website, merchandise, etc.
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  • Posted by Inbox_Interactive on 9/30/2008 at 8:19 PM Member
    If you were to work full-time for a company doing something that used your best professional skills, what would you earn per hour? As a consultant, you might aim for a target triple that amount.

    Just a ballpark.

    Naturally, the real answer is ,"It depends."
  • Posted on 9/30/2008 at 8:38 PM Author
    It's hard to figure that out because, doing this for film and producing movies is very lucrative. I always had a set fee for producing, and as an executive, a salary plus bonuses. I have found out what a full time position as a marketing VP in publishing pays per year, do you suggest I break that down into an hourly rate and triple it? My skill set, I think, goes beyond that in scope, given my media contacts and expertise in entertainment.
  • Posted by Inbox_Interactive on 9/30/2008 at 8:48 PM Member
    Yes, I think the correct approach is, "If someone were going to hire me full time to do this work, what would the salary be?"

    If it's $150,000 per year, call it $75/hour. Triple that, and your hourly as a consultant would be $225.

    Depending on your skills and your client, that number could easily be in the ballpark. You might offer a slight concession if this is a full-time gig and if it will last for a known period of time.

    Remeber, though, that the best pricing plans are not based on what you think your value is, but rather what your client thinks. If by having you on board they make, say, $10 million, then you might be worth much more than $225/hour.

    Might you get some of your compensation based on a performance and the financial outcome?
  • Posted on 9/30/2008 at 9:56 PM Author
    I could structure something into the contract like a performance bonus, if I go with an hourly rate. My concern with an hourly rate is that this job is likely to last months - full time for a certain period. Is it advisable to come up with a monthly rate, determined in the same way you propose, based on my being exclusively working on this project for say x amount of months, then going to an hourly, say after the initial launch? I have hired consultants when I was running a company and placed them on retainer - to guarantee they would be available when I needed them - this model might work for me down the line, but initially, I expect they will need me full time plus. Have you seen instances which mix and match; e.g. hourly or monthly rate at one point then moving to a retainer agreement?
  • Posted by Jay Hamilton-Roth on 10/1/2008 at 9:44 AM Accepted
    I would focus your performance bonus only for your ancillary business opportunities, since these are measurable ROI.

    I'd suggest that charge a flat fee initially to define the scope of your work (the marketing plan). Then, you can offer them either the retainer, hourly, or fixed (with the ability to bump it up should the scope of your work change).
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