Rates are always based on a combination of the role that the consultant will be playing, the experience of the consultant and market conditions.
$100 / hour for basic design and development work is a decent rate in most US markets, but if the rate is “all-inclusive” then the vendor or customer is expecting you to pay all travel and living costs. If the project is local to where you live that’s no big deal, if the project is not-local and is located in an expensive city (like NYC or Northern Virginia) then that rate may not be so good.
I have seen ridiculous offers of $50 - $75 for “Senior Architects” with several years of experience in a long list of technologies. Employers looking for that combination will get lots of applicants but almost never who they really need for their project.
There is a great deal of competition and downward price pressure for entry level positions. As in any other endeavor you need expertise and experience that differentiates you if you are seeking higher billing rates.
Other things to consider before making the jump to an independent contractor is getting good advice from a CPA or bookkeeper on how you will pay your taxes, whether to incorporate or not and whether you will need a business line of credit to get through the times when a customer or subcontractor is slow to pay the bills. If you count on not getting paid for 75-90 days you may be pleasantly surprised to get paid in 45-60. You will almost never be paid in 30-45 days despite how the payment terms in the contract are defined. Some clients may also require you to purchse Workers Compensation, General Liability or Errors and Omissions (E&O) insurance.
Mark
#webMethods#webMethods-Archive#If-it-doesn-t-fit-anywhere-else