I want to increase my day rate, what should I do?

[Lance]

You'll find that rate isn't the only goal. Length of contract comes into it too, as well as intention to extend. No point getting £500 pd for six months, benched for three then another £500 pd for three months when you can have £480pd for 12 months.

Other factors such as location, costs, commute, opportunity to learn (new industry, tech), etc will all factor into decisions. Four clients, each with multiple extensions on your cv will demonstrate that you're worth hiring because you see projects through - jumping every three months for a better rate doesn't look anywhere near as good.

I agree with your first point when starting out. But maximum revenue becomes less of a goal once you have a decent warchest.
But longer gigs are the ones that are in short supply now.

The goal for outside IR35 contractors now, should be to get more clients running in parallel. That has other challenges but when one project comes to an end you have at least one already started, and maybe another one or two in the pipeline. But that is not a year 1 goal like longevity.

[Fraidycat]

I just started contracting recently. This is my first gig and there's still lots to learn, but everything is going great so far.

I want to plan out a "career progression" so to speak for the next 5 to 10 years, so that I have a goal and can push myself forward, rather than being too complacent.

For a permie this would mean moving up the ladder, but as a contractor I think this mostly means increasing the day rate.

Do you experienced folks have any tips or directions or learned mistakes that you can teach this total noob please? What did you do to improve your rates?

Thank you.

You need to exceed the clients expectations to get an above inflationary rate increase.

If the client is paying average you need to be above average in the quality and quantity of the work you produce or how much responsibility you take on.

If they are paying you below market then it is easier for you to beat expectations.

If you are already getting paid 90th percentile you got to be really good, top 1 or 2% to get even more.

[LondonManc]

I agree with your first point when starting out. But maximum revenue becomes less of a goal once you have a decent warchest.
But longer gigs are the ones that are in short supply now.

The goal for outside IR35 contractors now, should be to get more clients running in parallel. That has other challenges but when one project comes to an end you have at least one already started, and maybe another one or two in the pipeline. But that is not a year 1 goal like longevity.

Sorry, should be clearer - I was talking about not being a rate snob.

Getting a grip on the differences between inside and outside IR35 gigs and not simply being able to pay lip service to it any more will be useful too; I've often had to factor in travel and accommodation costs when contracting so it would make a significant difference. If you're living in London and only ever contracting inside the M25, it makes far less of a difference.

[northernladuk]

You need to exceed the clients expectations to get an above inflationary rate increase.

If the client is paying average you need to be above average in the quality and quantity of the work you produce or how much responsibility you take on.

If they are paying you below market then it is easier for you to beat expectations.

If you are already getting paid 90th percentile you got to be really good, top 1 or 2% to get even more.

This might work in the high profile gigs you do and are out of reach for the vast majority of us but is unlikely to work on the whole. Clients have set day rates for the work and as a contractor (IMO) you should be better than the standard perm anyway. Taking more responsibility on is going to blow your SOW and put you at risk of D&C as well. Clients pay below market rate because they can, it's not linked to the performance of the contractor. Rate uplifts from clients are very very rare and your increase will come from the agents commission.

[lecyclist]

+ Travel anywhere for work.
+ Use your network (get those glowing endorsements early in your career).
+ Apply for jobs with better earning potential.
+ Cultivate the ability to absorb knowledge and new skills rapidly. Laziness is no excuse -- Udemy for example has content on almost every skill imaginable.
+ Upsell yourself, and learn rapidly on the job.
+ Improve your presentation skills (technical). e.g. Curate a library of templates for use throughout your career, so you can deliver exceptional content quickly.
+ Improve your presentation skills (personal). Look the part, talk the part.
+ Learn additional languages to increase your global marketability.

[wywywywy]

Lots of good advice. Exactly what I was looking for. Thanks folks. Keep them coming please!

And sorry I should have mentioned - I'm a software engineer in the DevOps & Cloud space. The demand seems to have been high for Kubernetes & AWS etc over the last few years.

What about specialising into a niche - by industry (e.g. legal, insurance, gambling) or by tech (perhaps mainframe stuff etc)? Are the rates usually higher?

[Lance]

Lots of good advice. Exactly what I was looking for. Thanks folks. Keep them coming please!

And sorry I should have mentioned - I'm a software engineer in the DevOps & Cloud space. The demand seems to have been high for Kubernetes & AWS etc over the last few years.

What about specialising into a niche - by industry (e.g. legal, insurance, gambling) or by tech (perhaps mainframe stuff etc)? Are the rates usually higher?

mainframe rates are really good if you've been doing COBOL on them for 30 years.
Someone who just read a book on it is no use to them.

[lecyclist]

There are also country specific opportunities (although Brexit has complicated mobility).

For example, rates in Netherlands and Belgium in my experience are usually lower than say UK, Germany, Switzerland for comparable roles.

Taxes in Belgium are eye-wateringly high.

Both countries value native english speakers in international working environments. This combination of factors can enable junior staff to leverage themselves into positions that are less financially appealing to experienced contractors. Less competition / more upskilling opportunities.

[krytonsheep]

For a permie this would mean moving up the ladder, but as a contractor I think this mostly means increasing the day rate.

If you're a software engineer then it's worth thinking about what scales and who is in control of your time in the long term.

• Exchange your time for money, so the client can make lots of money from service/product X/Y/Z ( doesn't scale, no control)

• Earn enough contracting so you can take time off and develop your own service/product ( scales, full control )

[DevUK]

Would be helpful if you mentioned an industry

How would that be helpful? What about this seems industry-specific?