"I’m talking pricing your services now in proportion to the rewards the client may enjoy later.” -
Definitely something hard to achieve in freelancing - but does seem to be incredibly valuable for companies who can use freelancers wisely
Conversation
I couldn’t make sense of this line. What’s your interpretation?
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Think of it as the equivalent of a risk premium. Like soldiers being paid an imminent danger or hostile fire pay.
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I would accept the authors interpretation though haha
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They are not inconsistent 🙂
You operate in a new, leveled up way if you raise with risk, even if task is the same. Being on patrol in peacetime and in a war zone involve same basic behaviors, but latter requires heightened level. It’s a way to capture the meaning of the project
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I get the risk if you go from an hourly to outcome based engagement model, but what’s the risk in an hourly engagement model? What makes one client a $400/hr risk versus a $1000/hr?
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Ah, I see. That big a range has not come up for me personally since I tend to operate in a fairly tight risk range across clients. But a higher risk project is more likely to fail and just end the consultant’s gig if not the employee’s career.
Though the subjective logic is more to get in the right headspace, you could also argue the case for pricing with risk in terms of NPV/DCF. A patrol job in peacetime can be expected to go on forever. A patrol job in a high conflict zone can be expected to kill you at some point.
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Certain meta-behaviors (developing and maintaining situation awareness, learning inside baseball of an industry) are only worth it if you can expect to amortize learning costs over a sufficient number of lifetime hours and similar gigs.


