[TriLUG] How to get consulting work...

[Jon Carnes]

Some folks have asked off list about the best way to grow consulting work. 
I'm not an expert at courting consulting work, but what I do works very well 
for me.  

The key thing is that you have to find something(s) you like and are willing 
to devote some time to.  I generally keep about one step behind the cutting 
edge, but I'm not shy about bringing in new technology to HAHT (my erstwhile 
and primary employer).

As an example, HAHT needed remote connectivity with our remote sites, so I 
helped out with various Open Source efforts to perfect VPN's.  Initially I 
used PPP via SSH and I still use it today for some sites.  Then I moved up to 
using PPTP and IPsec, after a brief flirtation with CIPE.

In mastering the above skills, I had joined several lists, and eventually 
found myself answering more questions than I asked.  That led to the write up 
of some FAQ's and the layout of some easy to follow processes.  Soon, I found 
myself being quoted as an authoritative source... 

The transition from giving free tech support on a list to "paid for support" 
is sometimes tricky, but my general rule is that if it they want me to do it 
for them - they pay.  If they want to do it themselves, I'll answer any 
publicly asked question - or point them to a resource that helps.
Also any major information exchange that takes place off list - in private 
should be paid for.

I don't have to justify this.  It's my rules.  I do have justifications of 
course... but the key thing to remember is that this is your time, and it is 
valuable.

How valuable is your time?  Well that is for you to decide.  I generally 
charge $40/hour for remote work but my rates vary from $25 to $60/hour. The 
cost difference is mainly based on how busy I am and how much I really want 
to do the job.  It really pisses me off when someone excepts my bid for 
$60/hour...

My current "passion" is Mailman, and that has brought in an incredible amount 
of work - mainly from small ISP's and medium sized businesses.  It turns out 
that I have a talent for customizing Mailman so that it matches the 
specialized needs of my clients.

I am fairly business-like in my dealings and I always follow up the initial 
employment inquiries with a general statement of work:
  - State my requirements for doing the job: remote access, ssh, root access, 
etc.
  - A general description of the work I will do, systems I will modify, 
documentation I will provide
  - A general description of the clients responsibilities, what systems they 
will be responsible for, who will be responsible for on-going maintenance, 
skill set they will need to acquire in order to perform that on-going 
maintenance etc.
  - I try to give an accurate time-line, and generally I give myself some 
cushion here.  If they push on this item, the price goes up... (choose two of 
three: quick, good, inexpensive)
  - I lay-out my payment schedule and how and how-often I expect to be paid
  - Last, I generally follow up with a warranty statement about my work: 
basically it says, that once they sign off on my work, it's their 
responsibility (unless they want to sign a maintenance contract...).

Oddly enough, most folks accept right away.  I don't think I've ever had to 
haggle with a single client.

Above all else, remember that this is simply a business.  Keep it that way.  
Paradoxically, the more business-like I am, the more often I get repeat 
business.  The friendlier I am, the least likely I am to get referrals or 
repeat business from that client.... Draw your own conclusions.

Finally, remember the IRS.  They will certainly remember you.  If you do more 
than $600 worth of work for a client, they will need your SSN and will have 
to send you a Form 1099 at the end of the year.  If you do less than 
$600/year for a client, then you still need to record the income ("other 
income" on your tax form).  If you haven't put aside the IRS's portion of 
that cash you earned, then you'll be hurting come April 15th.

I hope this helps some folks.  I'm interested to hear others adventures in 
consulting as well.

Jon Carnes