billing vs. earning ratio

[MrGoodBytes]

For salary positions, is there any guidelines or unwritten rules on what an employees salary should be versus what theythey have billed out for the company ... more specifically for very specialize software consultants.

 

[Milpool]

Depends on size and structure of the company. What kind of resources are needed to support you as a consultant? Office? Marketing people? HR people? Secretary? Computer systems?

All that overhead is coming out of your billable.

 

[tj100]

Depends on a lot of factors, but the guideline I've always used is 3x for a daily rate, 4x for an hourly rate. Usually works out to $1,500 - $2,000/day.

 

[gamelan]

we aim for 4x (consulting arm of a software company).

-Jeff

 

[cross22]

^ Seriously? What is your utilization target?