Sanity check / thought experiment

[jayn200]

It's difficult to have a very straight answer because there are too many variables but generally speaking I wouldn't do either option without some kind of compensation. The compensation could be new business gained as in Option A.

Under Option B when you might not secure the business I would expect to get paid in some other way usually. There are cases when I could do Option B and get no compensation though it's really hard to tell without any further detail.

[wattaj]

Option A: one is working on behalf of oneself and it is a cost of sales.
Option B: one is working on behalf of one's client and should be billed... but there's nothing to stop a bit of schmoozing on the side that might help one's business.

[BlasterBates]

This is sales and you either earn commission or you earn on delivering part of the service. You don't normally charge a daily rate for that. You need to include the costs in your daily rate. You could agree some sort of commission for each successful lead, but that might be too complicated and therefore probably easier to simply earn on the service you provide.

[ladymuck]

Buying a beer might be business entertaining which is not quite a cost of business although the business foots the bill. It’s treated differently for tax though.

[ladymuck]

So you wouldn't bill for regular chats about how they can make their business work better, or for reviewing and updating documents / producing materials they will use for sales? If the company sells something you've helped put together but you have no guarantee that you'll be on the delivery team is a bit of a kicker. It's a big package of consultancy in my eyes and I just don't see why it should be given for free.

Occasional freebies always smooth things over but not regular, ongoing effort.

[BlasterBates]

So you wouldn't bill for regular chats about how they can make their business work better, or for reviewing and updating documents / producing materials they will use for sales? If the company sells something you've helped put together but you have no guarantee that you'll be on the delivery team is a bit of a kicker. It's a big package of consultancy in my eyes and I just don't see why it should be given for free.

Occasional freebies always smooth things over but not regular, ongoing effort.

If shouldn't be done for free, there are 3 options:

1) Charge them an hourly rate, but agree the terms and conditions before you get involved.
2) Negotiate a commission on each contract you're involved in selling.
3) Earn a higher daily rate on the subcontracted work, so the hours you put into sales are recouped.

I suspect the consultancy expects option 3.

[ladymuck]

If shouldn't be done for free, there are 3 options:

1) Charge them an hourly rate, but agree the terms and conditions before you get involved.
2) Negotiate a commission on each contract you're involved in selling.
3) Earn a higher daily rate on the subcontracted work, so the hours you put into sales are recouped.

I suspect the consultancy expects option 3.

I think #3 is the expectation which then lends itself to them awarding the work to a cheaper supplier...

[BlasterBates]

I think #3 is the expectation which then lends itself to them awarding the work to a cheaper supplier...

In that case I would advise negotiating an agreement or a contract for the sales work. This could be an hourly rate or an agreement that you would be the exclusive supplier. If you are not the exclusive supplier this would be a good argument to put to them before you get involved, i.e. what is in it for you.

[ladymuck]

Well it looks like I lost the argument but it was good to get extra opinions. And, it's not my business (in many senses of the word) to worry about.

[WordIsBond]

My view is that in any case, it's raising my profile with potential clients AND strengthening my relationship with the existing client. I'm not averse to billing a client for it but that's not my first inclination. Depends on the client, conference, client relationship, etc, I suppose.