How Much Should You Expect To Earn As A Consultant?
Seeking employment in the consultancy industry or setting up a consultant’s business is a great way to make a career in a truly creative, challenging field. This is also one of the most competitive fields there is right now thanks to the earning potential it presents. On average, a consultant in the US can expect to earn around $75000 per annum, which is quite reasonable, but with the right approach to business, there is no reason why your income should be capped to this limit. There are many factors that impact your earning potential:
Are You Independent Or Employed?
As an employee, you do have certain limits to the level your salaries can reach but as an independent consultant, the sky is the limit since you can price your services depending on the value that you add. However, a salaried position guarantees you a regular income. Think well before you choose whether to go solo or find a job.
Identifying a niche that has relatively fewer consultants is a good way to ensure that customers do not balk at a higher cost if you can provide impeccable solutions. Even if you choose a common niche, highlight the unique value add that you can offer to justify higher pricing for your service. Promote your business with a clear emphasis on the USP you have to show prospective clients why your higher pricing still gets them excellent value for their money.
Experienced consultants get paid more than newcomers, of course, but that is not the only factor that affects your potential earnings. Your credentials have a part to play here too. An MBA in your niche can fetch you a much better pay scale and/ or more clients, well-paying ones, at that, because your qualification encourages people to place more trust in your competence.
If you do choose to set up your own consultancy, then protecting your firm financially is also a critical step to take. One of the most important things to consider is to get professional liability insurance. This insurance protects you from financial impact when a client files a case against you for negligence or for providing poor solutions that resulted in some damage to them. Check BizInsure’s website to learn more about consultants’ professional liability insurance.
- Consulting.com. Consultant Salaries in 2019. Last updated: 2019
- Indeed.com, 2019. Last updated: Nov 16, 2019. Available at: https://www.indeed.com/salaries/Consultant-Salaries
- Consulting.com. Consultant Salaries in 2019. Last updated: 2019, Available at https://www.consulting.com/consultant-salaries
- Mark Kolakowski, 2018. How Much Do Analysts & Consultants Earn? Last updated: Dec 7, 2018. Available at: https://www.thebalancecareers.com/how-much-do-consultants-earn-1286916
- Beech Tuttle, 2019. Here’s how much you’ll make at McKinsey, Bain, and BCG in the U.S. Last updated: Aug 13, 2019. Available at: https://news.efinancialcareers.com/uk-en/246284/work-in-management-consulting-how-much-you-will-make-at-mckinsey-bcg-and-bain