"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.
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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.


