Pay for Marketing Consultation?

Question

A client of mine wants to know how much I charge for a marketing consultation.

What is the best way to charge for this service? Per hour, per day, per project, etc? What if I submit a list of ideas and the client declines, but then steals the idea? How can I be sure I'm not losing money on the time I'm spending to put ideas together?

Answer 1

Per hour is best. You should put together a project charter of some sort. And make it part of a contract. (See the end for a sample Project Charter Outline)

You need to give a fair estimate on the numbers of hours you expect to spend on the project. Time/cost overruns should also be covered.

Any ideas you come up with that you share are their property (unless otherwise stated in the contract). When the contract is signed, any work you do for them will be paid for, unless one of you do not live up to the terms of the contract. But with contract violations, you are able to sue.

Also note that you are essentially a sole proprietorship business here. So expect (in the US) to pay around 40% of what you make in taxes. Bill $40 to $75/hour (or more if you're worth it...).

Roger!

Below are some topics you may want to cover in a contract:

General Problem/Opportunity Statement or Business Need

Brief summary of the client situation, problem/opportunity situation, and/or statement of the business need driving the initiative.

Goals and Objectives for the Initiative

Specific questions that initiative will attempt to answer and/or issues that initiative will address.

Scope and Boundaries for the Project

Primary areas of focus for the initiative as well as questions and/or issues discussed with client that will not be pursued in this Capstone initiative.

Estimated Budget

Expenses (if any) that will be incurred as a part of this initiative. (NOTE: Client approval of estimated budget is required before any expense can be authorized/approved.)

Key Client Contact(s)

Names, titles/positions, snail mail, phone, fax, email information

Confidentiality Agreement

Specify how client’s confidentiality requirements (if any) will be met

Deliverables

Specify nature of final deliverables to be provided.

Work Plan/Critical Path/Timetable and Milestones

Major tasks/steps and timetable (weekly timetable for initiative).

Key Deadlines (Must include key work steps, meetings, and deliverables)

Answer 2

What if your client comes on Yahoo and reads this?

Anywho, charging by hour would be the best solution to benefit yourself.

Answer 3

To protect yourself, draw up a simple contract/agreement.  Have you not done this sort of thing before?  Is this a new business or part of your business?

Definately charge by the hour, but it is of great importance that you listen to your customer...ask questions yes, but really listen to them.  Get a feel for thier style and their business and go from their so you are most likely to come up with the right marketing ideas for your client and thier business.