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patio11's profile
Patrick McKenzie
Patrick McKenzie
Patrick McKenzie
@patio11

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Patrick McKenzie

@patio11

I work for the Internet, at @stripe, mostly on accelerating startups. Opinions here are my own.

東京都 Tokyo
kalzumeus.com
Joined February 2009

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    1. Patrick McKenzie‏ @patio11 30 Nov 2017
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      Patrick McKenzie Retweeted Thomas H. Ptacek

      A good thread about consulting. I might have some additional thoughts:https://twitter.com/tqbf/status/936435854511403008 …

      Patrick McKenzie added,

      Thomas H. Ptacek @tqbf
      First: don’t charge hourly. Charge a day rate. Serious customers won’t balk. You don’t have a unit of work less than 1 day.
      Show this thread
      1 reply 33 retweets 147 likes
      Show this thread
      Patrick McKenzie‏ @patio11 30 Nov 2017
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      Clients buy a variety of things from consultants, and butt-in-seat-time is the least salient of those things. You can increase your rates (or even add line items to an invoice) in compensation with others.

      8:08 PM - 30 Nov 2017
      • 3 Retweets
      • 13 Likes
      • Brandon 🚀 Blitz.js⚡️ ~ Eli Courtwright ericbalasbas Kevin Burke Elijah Miller Tim Hanlon Andrew Nebus Jim Gray
      1 reply 3 retweets 13 likes
        1. New conversation
        2. Patrick McKenzie‏ @patio11 30 Nov 2017
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          Scheduling predictability: Your “rack rate” (the standard number you quote) is generally for “X amount of time scheduled *after we’ve signed contract* at a mutually convenient time during standard business hours N months out from now.”

          1 reply 2 retweets 17 likes
          Show this thread
        3. Patrick McKenzie‏ @patio11 30 Nov 2017
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          If a client wants you to start tomorrow, that might be something they can buy. Clients can ask a consultant “Be in Germany, tomorrow. You start as soon as you get off the plane.” Nobody does this to employees. It. Is. Not. A. Free. Thing.

          2 replies 3 retweets 27 likes
          Show this thread
        4. Patrick McKenzie‏ @patio11 30 Nov 2017
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          Commitments of availability: some engagements are periodic in nature. A client might want to lock up availability for 9 months from now. If your plan-ahead window is usually 3 months, that also costs money (and/or a retainer, and/or a deposit).

          1 reply 1 retweet 16 likes
          Show this thread
        5. Patrick McKenzie‏ @patio11 30 Nov 2017
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          At a multi-member firm, clients purchase outcomes. If they also get to name their consultants, cool, that’s probably extra. (The firm might choose to distribute some as a bonus. Or might not.)

          1 reply 1 retweet 8 likes
          Show this thread
        6. Patrick McKenzie‏ @patio11 30 Nov 2017
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          The three most important things to getting out of the feast-or-famine cycle are all about recurring revenue. You turn one-off engagements into: a) Repeat work, ideally committed work b) Referrals c) Retainers

          1 reply 10 retweets 37 likes
          Show this thread
        7. Patrick McKenzie‏ @patio11 30 Nov 2017
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          (What’s the difference between repeat work and a retainer? The retainer is paying for the option value of perhaps having work for you. It’s on a use-it-or-lose-it basis and costs a slight discount to scheduling you.)

          1 reply 2 retweets 20 likes
          Show this thread
        8. Patrick McKenzie‏ @patio11 30 Nov 2017
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          The most common thing technologists will sell on a retainer basis is support or maintenance for shipped applications, which is otherwise the client’s responsibility after the acceptance period.

          1 reply 1 retweet 19 likes
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        9. Patrick McKenzie‏ @patio11 30 Nov 2017
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          “What about if there is a bug?” All software has bugs. Everyone buying and selling software knows this. That’s why there are acceptance criteria in your contract which specify who is in charge of bugs at X severity after Y time.

          4 replies 4 retweets 32 likes
          Show this thread
        10. End of conversation

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