how to make a lot more money as a consultant

How To Make a LOT More Money as a Consultant

James SerraBI ArchitectJamesSerra3@gmail.comhttp://JamesSerra.com/

About me

• In IT for 28 years• Worked as desktop/web/database developer, DBA,

BI• Been perm, contractor, consultant, business owner• Six certifications in SQL Server 2008• SME for SQL Server 2012 certs• Currently a consultant working with PDW

AgendaReasons to become a consultantReasons not to be a consultantWhy companies pay more for consultantsDifferences between perm, contracting, consultingWhat it is like to be a consultantUnderstanding how staffing companies workSalary vs W2 vs 1099Social media, job boards, networkingTechnical and communication skillsResume, interviewing, negotiatingIn-demand skills, certifications

Reasons to become a consultant

• Flexible work hours• Control over projects and working conditions• No office politics• Few meetings• Paid overtime• Predictability• Better work experience• Seen as expert, having the answers• Work with other consultants/experts• Paid travel, live anywhere• Remote work/Telecommuting• MORE MONEY!• But…it’s not just about the money, it’s about the

challenge

Reasons not to be a consultant

• Can’t travel• Need good insurance• More Complex –

Taxes/Insurance/Billing/Incorporation etc.• Riskier• 30-day net• Higher expectations• Always on the hunt• Uncertainty /job security/piece of mind/stability• Afraid of change • Introverted• Don’t learn quickly• BUT you can overcome some of these reasons

Why companies pay more for consultants

• Different bucket of money• Don’t pay for overhead• Looks better on company statement• Tax deduction• No salary slot• Don’t have to train• Easier to get rid of• Plans change• Quickly acquire resources• Short-term projects• Save office space• Less management and liability• Quick and better solutions

Differences between perm, contracting, consulting• Permanent/Salaried/Full-Time Exempt/FTE (“Perm”)

− Benefits− No OT

• Contractor− Staff augmentation− Work on given tasks− Hourly− Benefits thru placement company

• Consultant− Help create the solution− Create the tasks− Independent, may use broker− Hourly− Own benefits

What it is like to be a consultant

• Multiple clients/projects at once• Multiple technologies• Can have work over 8 paid hours a day if desired• Always be selling. Land and grab• Business relationship vs employee/employer• New environment every few months• Always learning and meeting new people• Make extra effort to meet people, be friendly

Understanding how staffing companies work• Difference between placement/staffing company

(recruiters) and consulting company• Bench• Limited by projects they have• Markup• What is a fair markup? • They find the jobs for you• Avoid being salaried for staffing company• Salaried for a true consulting company• Watch out for lot’s of travel• Be aware of jumping ship

Salary vs W2 vs 1099

• Salary− Benefits− 401k matching, stock− No OT− Paid training− Yearly salary increase, bonus (annual review)− Promotions− Workers compensation, unemployment

• W2− Paid only when work− Taxes withheld− Some tax deductions− Usually thru broker (“staffing company”)− No bookkeeping− Part of health insurance paid

Salary vs W2 vs 1099 (cont)

• 1099− 7.65% in self-employment taxes− No taxes withheld− Submit invoices− Paid only when work− Net 30-days− Possible issues collecting payment− Max tax deductions− Make sure to save money for taxes− Defer more income into retirement plans− High health insurance costs− Need about $3/hr more over W2

Social media, job boards, networking

• Blogging• LinkedIn• Twitter• Email, message boards• Dice, Monster• User Groups, conventions (PASS, TDWI)• Word of mouth• It’s a small world

Technical and communication skills

• Always Be Learning• Become an expert• Market yourself/branding• Set short-term and long-term goals• Learns skills to do project from beginning to end• Speak at user groups, conferences• Consultants frequently meet with upper

management• No time? Figure it out!

Resume, interviewing, negotiating

• Use LinkedIn to build your resume• Interview every 3-6 months• Negotiating with a recruiter is like buying a car

In-demand skills, Certifications

• Business Intelligence (SSAS, SSIS, SSAS, PerformancePoint, PowerPivot, MDM)

• Data Warehouse• Big data (PDW)• Appliances (Fast Track, BDA, BDW, DBC)• SQL Server 2012• SQL Azure• People skills• High demand, low supply• Microsoft Certifications• Microsoft MVP

Final thoughts and questions

Resources:• Salaried employee vs contractor: http://bit.ly/xt7vYw• Consultants: 1099 or W-2? http://bit.ly/AhJv1k• Thinking about taking a contract position? Questions to ask: http://bit.ly/ztOfpz • Microsoft Certifications and MVP’s – What are they? http://bit.ly/wQhCOA • How to become an expert in your field http://bit.ly/zJ9Ztq • ABL: Always Be Learning: http://bit.ly/zDsnkj • DBA’s, want to earn the big bucks? Learn BI: http://bit.ly/wJ7u5u • The best IT job boards: http://bit.ly/yp9r3l • Microsoft SQL Server Parallel Data Warehouse (PDW) Explained: http://bit.ly/y2N34D• Microsoft SQL Server Reference Architecture and Appliances: http://bit.ly/xBsB68• Microsoft’s Data Warehouse offerings: http://bit.ly/zNcQ7s• Microsoft and HP’s Database Consolidation Appliance: http://bit.ly/nUd5nH • New features in SQL Server 2012: http://www.jamesserra.com/denali/ • To Payroll or Not – Hiring Contract vs. Salary Employees: http://bit.ly/4tP3mF• 8 Good Reasons to Become a Contractor: http://bit.ly/1Z1aNK• Consultants: W-2, 1099 or Corp-to-Corp: http://bit.ly/yp9r3l • LinkedIn Resume Builder: http://resume.linkedinlabs.com/ • SQLInspire NYC 2011 Video Library: http://bit.ly/xCjdGy