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Entry #21

Are You Sure That You Are A Consultant?

If you are regularly brought in to help with a specific task, you are not a consultant. You are a contractor.

You might be a programmer who builds software solutions, contributes to a client’s codebase, and genuinely believes that improving their technology improves their business. That may well be true. But it does not make you a consultant. Ask yourself honestly: did you and your client identify together what actually needed to be done? Did you define how success would be measured? Did you agree on the value the work would deliver to the business? If the answer to any of those is no, you are contracting. There is nothing wrong with that, but the two things are not the same and the difference matters.

As a contractor your work is commoditised. There are hundreds of thousands of people who could do what you do, and the company knows it. They are matching skills to market rates, looking for the best ratio between capability and hourly fee. Your quality, your experience, your conviction that you are the best at what you do, none of that changes the equation much. The fee is the selling point. Which means you are almost always subject to pricing pressure, and the only lever you have is how low you are willing to go.

The exception is a rare skill in genuine short supply, where competition thins out and you can command higher rates. But rare skills tend to carry low demand almost by definition. If the demand were large enough, the skill would not stay rare for long. The market fills in quickly.

So how do you make the leap from contractor to consultant?

Picture of Markus Abraham

Markus Abraham

This is my abbreviated personal auto-biography. Everything you read here is the truth and nothing but the truth. Apart form that, all good. Obviously, this text requires replacing with an actual biography, before the client sees it.