First contract, what's my day rate?

[l35kee]

In my experience you won't average 10 months over the long term. 8 might be a better approximation. And it's not a question of enjoying 4 months off - you're working flat out on getting your next gig.

I disagree with that. I'll be enjoying my time off after this contract ends considering I'll have taken home almost 3x my permie take home over the course of the year.

[HugeWhale]

I disagree with that. I'll be enjoying my time off after this contract ends considering I'll have taken home almost 3x my permie take home over the course of the year.

?
I don't understand this. I was just saying that, in my experience, over the long term you'd be doing well to be on contract for 10 months/year on average.

[l35kee]

?
I don't understand this. I was just saying that, in my experience, over the long term you'd be doing well to be on contract for 10 months/year on average.

I mean, what you actually said was:

And it's not a question of enjoying 4 months off - you're working flat out on getting your next gig

To which my response was that I will in fact, be enjoying my time off, and not working flat out.

[HugeWhale]

I mean, what you actually said was:



To which my response was that I will in fact, be enjoying my time off, and not working flat out.

Got it.

[malvolio]

Got it.

Don't argue with the voice of experience. Ask him again next year...

[mattfx]

@mattfx I think on a permie salary you said, thats a pretty low rate. I think my rate is low for my permie salary tbh..

Yep. It was, it is... However, I was about to pass my probation and move on to a 3 month notice period, everything happened very quickly and I knew I didn't want to stay at my permie job.

That all being said, I am struggling to be competitive at anything above £300/day in the contract space. Having no problems getting past recruiters, CV apparently is fine, but when it comes to submission clients are either pulling roles or accepting other candidates ahead of me, mostly before i've interviewed.

The interview I cocked up was for £450 a day, which seemed much more in line with my original expectations.

Unfortunately, there's a lot of infrastructure people who are quite talented in a fairly small pool, standing out is difficult, old contacts have nothing for me. It's looking increasingly likely I'm going to have enforced bench time.

[Smackdown]

Hey All,

So i'm ready to go contracting and getting asked about my day rate.

While I know what I would like (as much as possible), i'm not sure what is reasonable and whether my first contract makes a difference or not?

My last perm gig was £77k (startup no bens) and calculator says that equates to about £350 per day. I would have thought that around 450-500 mark would have been appropriate (Or higher even).

The company I am talking about now wanted to recruit me as a lead developer for £85k perm.

Considering all of this, what is your gut day rate that would be appropriate. Should I go for 450 or 500?

I am aware I need to be careful..obviously I can't say I am open to rate discussion as they will use that. I would also like to think that if they like me but rate is too high they will say so?

Any guidance at all is appreciated.

Many thanks

Nobody is answering your question so I will.

Take £450 and get a contract under your belt then up to £550.

£50/day is 1k in revenue each month. One missed month of work is anywhere between 7-12k. You do the maths. You lose a lot more on being out of contract then you gain from higher rates. Having said that, getting £450 when they would of been happy to pay £550 is stupid. I think the advice from the more experienced contractors is good about being rate-coy.

I went from £45k -> £450/day. I also got my first contract cancelled after 6 weeks before I had built up a warchest. Or even paid for that matter. It's a lot more precarious then you think it is and it can force you into positions you wouldn't expect. I ended up accepting £350/day for my next contract.

Your contracts can make a difference in the sense of your skillset being developed a certain way.

[TheFaQQer]

Take £450 and get a contract under your belt then up to £550.

There is nothing to "take" - it's not like there are roles to be chosen here, the question is around what to aim for.

What skills do you know that the OP has to be able to charge £550 a day?

[password]

Well,

It seems there is a lot going on in this thread now. For some reason I wasn't automatically subscribed.

Let me just explain a bit. I'm not being naive.. I started the general thread about rates on here to just see what the story was and if I could pick up any tips etc. Similar to me turning to my contracting mates at the pub and asking "so what do you reckon my day rate should be........"!

I am blue in the face by hearing permies talk about day rates = pure gold and that's all there is to it. I am aware of and have been aware of all the admin, risks, costs, bench time, you.name.it. I have been reading about and researching the contracting business for the last number of years. All the ups and downs, changes in HMRC rules and concerns from existing contractors etc.

This isn't my first rodeo on this firm and the few times I have posted before as a would be contractor, I have come across the same resentment. I also see it towards others. I can only surmise that there is an unwritten concept that existing hardcore contractors should bat all the newbies off like flies and not have them saturate the market.

My goals for contracting or not purely fiscal, but that said. Why should I go uninformed and pitch myself for less that what I could get, if all it takes is a bit of research and bar talk (which this is). FWIW - my last perm role, I only recently joined and quit after 4 months. It was very well paid but manager was a sociopath and I was terribly unhappy, not good! So for contracting I am doing it so I can have more choice and rapid iteration, down time between contracts (positive for me) and I can also work on a startup idea I have.

I too am a cynical person when it comes to business, recruiters and the kool-aid the companies and especially startups (equity) present to perms. I am not in this game too long but have become more disillusioned in permanent type of employment for the type of person I am. I have given myself this year to experiment on a number of things and types of roles (apart from engineering) to see what happens.

My discussion on rates here was just that and I am disappointed at some of the responses here. I can understand why to some extent as you get a lot of narrow minded newbs on here. I am not your typical...

[silverlight1]

The bottom line is don't ask for advice on this forum :-)

Everyone has had different experiences as a contractor - I started contracting over 12 years ago and it's never been a decision I've regretted ever and has been a major positive contribution to mine and my families life.

However, to be successful you need to do your research and IMO you should never sacrifice your happiness for money (fortunately I have never had to spend time away as a contractor or travel far because my family is more important to me than ££) and most people are more suited to permanent jobs than being a contractor ( business-person / entrepreneur / tax expert / hired gun / general dogsbody in some contracts)