I've just listened t
[2022-09-25 01:26:46 AM] : I've just listened to Marissa Goldberg's great interview on the Badass Courses podcast. Briefly mentioned was taking on a fractional role (i.e. a part time role at a company - in this case was fractional Head of Remote). I can see this as being basically like offering a consulting service but on the basis of a long term retainer (?). Apart from being a stepping stone to 100% product income, what appeals to me is being able to keep gaining practical experience in the field. There's many aspects of my work I quite like and this might be a way to keep doing it in future. For anyone who has done this, what are some of the pros and cons of it?
2 Replies
[2022-09-25 01:27:58 AM] : Here's a link to the episode FYI https://open.spotify.com/episode/20191jrWs8g2q0U7Pwy6GK?si=um2VnHlrQNyO3DikmGmObg&utm_source=copy-link
[2022-09-26 12:18:56 PM] : Oscar Baruffa I’m currently doing lots of fractional work. most recent engagement is a 3-month retainer. I love it; it’s another source of revenue stream but ultimately, I love the consulting work. Stream of consciousness here:
Pros
• KTLO - keep the lights on. Fractional CTO engagement of ~20 hours a month == ~20k given that my recurring revenue for content (as of now) is net $0.00
• Stay plugged into actual real problems that customers face, idea generation for e-bombs
• Staying engaged with executive and engineering team - solo work can be lonely and I quite enjoy the periodic meetings, not too many, just enough.
Cons
• Time (of course) - 20+ hours a month not focused on other projects
• Business development - need to continue building relationship with customer (no different than 30x500 though) to keep retainer going
[2022-09-26 01:13:56 PM] : > Fractional CTO engagement of ~20 hours a month == ~20k
Matt Chung am i right to understand that that’s an effective hourly rate of $1000/hr?
[2022-09-26 01:30:29 PM] : Thanks Matt Chung, that's great info!
[2022-09-26 01:37:23 PM] : jasonswett I don’t do hourly billing but within an existing contract, I do allow some flexibility with some clients, allowing them to burst up to 10 hours per month at $500 per hour.
[2022-09-26 01:38:40 PM] : how do you bill, and what kind of work do you do for your clients?
[2022-09-26 02:51:11 PM] : Early on when I first launched my consulting company (back in July 2021), I did start off with hourly billing. As such, there are some (one remaining) clients using my older billing model. But now, I combine managed software services (for repeat, recurring revenue) and build packages such as a road map architecture document, design document artifacts, AWS training — different than typically AWS training, more geared towards software developers who want to learn how AWS software teams build scalable software.
[2022-09-26 02:53:23 PM] : hmm, interesting. IME VERY few freelance developers successfully make the transition from hourly to non-hourly billing. i’m always interested when i encounter people who have managed to do it.
how do you and your clients find each other?
[2022-09-26 05:36:42 PM] : jasonswett I actually wrote about how one of my clients found me here: https://www.linkedin.com/pulse/software-spidey-senses-how-listen-land-clients-matt-chung/?trackingId=oos4q31xQJ%2BH5jTrSj2D4A%3D%3D
Some I’ve gotten through hacker-news (HN), some through word of mouth, some through referrals
[2022-09-26 07:12:55 PM] : Oscar Baruffa Thanks for checking out the podcast episode! It was a fun conversation :slightly_smiling_face:
I'm a big fan of fractional roles (obviously) so I'm definitely biased, but I agree with the pros/cons Matt wrote.
I'm currently writing an article on becoming an entrepreneur as a risk-averse person, and I'll explain it more there.
[2022-09-26 07:15:41 PM] : In terms of billing, I do not recommend hourly for fractional work. I use a retainer for access contract, which means people pay x upfront at the beginning of the month for a maximum y hours.
This provides consistent income while also providing an max limit constraint for more needy clients.
[2022-09-27 04:57:24 PM] : jasonswett as far I know, in my country (Chile, LATAM) project billing is the common norm. So it's very strange to see freelancers charging by the hour.
They usually use a fixed project scope, estimate how many hours and multiply by a hourly rate though :sweat_smile:
[2022-09-27 05:29:01 PM] : Oscar Baruffa I'm working part-time for a company as a software developer
pros:
• fixed income with flexibility. I work on my projects in the mornings, and in the evenings for my part-time job.
• hours are not tracked :smile: it's more "goal-oriented".
• less time for my own projects = more focused time on them
• income is good considering I'm part-time and from LATAM (working for a US company)
cons:
• I have to show up every day :joy: so it's flexible but not too much. I usually end up working more hours than needed (still, <= 20 hours/week).
• The work itself is boring. Legacy codebase. I'm not learning. It's not challenging.
• I'm not creating a business around it.
Many of the cons are due to the type of arrangement ("web development"). I'm moving to a more strategic position in the same company, so it could change.
[2022-09-27 05:33:55 PM] : Published the article I was talking about:
https://30x500-academy.slack.com/archives/C0BBSM6AH/p1664314411565429