October 2005

Thanks to those who have posted questions to the Ask a Consulting Expert mailbox! Keep your questions coming! While we can’t guarantee that each question will be published in a monthly column, we assure you that your question will be answered!

Question

I am about to embark on my first training consultant opportunity and I do not have any idea of how I should charge the requestor for my services. I am going to build a training plan for four crafts totally 50 people. I will be producing an automated product utilizing Excel or Access so they will be able to retrieve or filter data as needed. Once I build the company Consolidated Training Plan I will incorporate the same template for each specialty. Each worker will have their own specialized training record showing a comprehensive training history for the period they are employed in this company. I have vast experience in this field but never had the opportunity to explore the civilian sector and provide my services to them on this level. I need some guidance on how I should charge this job prior to going to the initial meeting with the employer. Any help would be appreciated.

Answer

Wow this is quite a task! You could charge for this project in a couple of ways. First, answer these questions about your project (by the way readers, these are the same questions you would ask for any project.)

1. Do you know how long it will take you to complete the basic product?
2. Can you accurately estimate how long it will take you to complete each specialty?
3. Do you expect this project to be fairly foolproof—that is you will encounter few surprises?
4. Is it common for your client to pay by the project (as opposed to paying by the hour)?
5. If you underestimate the length of time, are you in a position to complete the task anyway with the highest quality, without raising your original quote?

If the answer to all of these is yes, it would be to your benefit to charge by the project. You may wish to divide the client’s investment into segments for ease of billing and tracking. For example you might divide the amount as Module I: Design; Module II: Implementation of the Base Plan; Module III: Implementation of the four Crafts @ $XX per Craft.

You could also bid the project by the hour but that is not easy to track or bill, and clients don’t like the open-ended amount. You could bid the project by the day if you expect to do most of the work at the client’s site (though it does not sound as if you will do that.) You probably could bill the project by the number of people who will benefit ($XX per person), but that doesn’t seem logical for this project. Remember to consider charging adequately if you are giving the organization unlimited use to something that you customized for them. If the organization has the rights to any original material that you develop for them, this also increases the value to your client and your ability to increase your project rate.

Bottom line? I think a per project bid is best for this project.

Question

I am contemplating working with an organization that would hire me for curriculum development. The courses I design would be part of an on-going training program. They are offering to pay me a fee up front and pay me royalties for each participant that uses the information. What is the going rate for royalties for curriculum development and is this used very often?

Answer

This method of paying for original designed work is used frequently. The “going rate” is determined by how unique your work is, how customized it is for the organization, how long you anticipate the work to remain current, how critical the materials are to the organization, the length of the material, how many people you anticipate using the material, how easy it would be for the client to end your arrangement on a moment’s notice, and a host of other elements.

Personally, I prefer to sell the rights to the material up front. I sometimes use a shared copyright arrangement that allows clients to make as many copies as they want as long as they do not use the materials outside their organizations or sell them to someone else. I do the work, get paid, and get to go on to another project. I don’t like to invoice for ongoing projects like this. The thought of the detailed recordkeeping—probably on a monthly basis—makes my head hurt!

Question

I’ve been with a couple of contracting firms in the DC area. I’m finding that my co-workers aren’t training professionals and that I am being hired to try to train people from all walks of life to be trainers. I would like to work with seasoned employees. Any suggestions on where to start in the DC area?

Answer

Wow do I have a deal for you! Are you aware that ASTD has a Job Bank? The ASTD Job Bank offers one of the most comprehensive career and recruiting sites for the workplace learning and performance profession. You can find and post jobs at the site or post your resume. You use a quick and easy format to search for options. You’re already on the ASTD website; why not check it out right now?

The second thought is that you must begin to network, and the best place is your local ASTD Chapter. Remember there is a certain amount of etiquette required. You do NOT introduce yourself to the Hottest Employer (HE) in town and ask for a job. It is that very behavior that keeps those hot employers from attending ASTD meetings. What should you do if you would really like to work for the Hottest Employer in town?

Introduce yourself. Learn something about Hottest Employer as well as the ASTD member who works for HE. Follow up the meeting with a personal hand written note to the individual stating you enjoyed meeting him or her. Hopefully you can also share something that the person was interested in learning or finding—not necessarily business related. (Did you discuss your favorite lasagna recipe? Is her son attending MIT? Does he like to play Monopoly? These are clues for you to do something with.) Then follow that up a week later with a letter (typed on your stationery) and your resume. In your letter tell your new networking friend that you would like to give him/her a call to discuss possible employment. Good luck.