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Ask HN: What is a fair hourly rate split btw consultant and consulting company?

2 points by goodgoblin ↗ HN
Hi Folks, Looking at a consulting gig and right now I am being presented with a 70/30 split. I've heard of much higher splits from others, but the consulting company is crying no mas. Am I getting a fair shake here? Its only my 2nd time consulting, and I definately got jobbed the last go-round. Was hoping people on here were in the know and could share what they believe constitutes an accurate and fair rate split.

Thx.

3 comments

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icey
Which way is the split going? You're a little unclear here.

A 60/40 split, with the consultant taking 40% is standard fare in many markets, but I have heard it's often less favorable in NYC, Boston, DC and the Silicon Valley. I have never consulted for a firm in any of these locations, so I can't provide an answer.

If you're talking about a 70/30 split with you taking 30%, I would say it mostly depends on whether or not the 30% is adequate for you personally.

If you're talking about a 70/30 split with you taking 70%, you would be very hard-pressed to find a more favorable split.

goodgoblin
Thanks for the info - I am taking 70% of the split, thought before I take the gig I was thinking of trying to extend it to 85%. I am also a little surprised that consulting companies get 60% of the hourly rate a consultant is billed at - that is mind boggling to me.