10+ Years IT Contracting at €300-900/day (Learnings)

[Mark Horrocks]

I was an IT contractor for over 10 years, earning €300-600/day (with the occasional €900/day short-term gigs).

I've had a few AdWords jobs and contracts since 2009 (and am currently still in one long running one).

In that time, I've learnt how to:

1. Build relationships with recruitment agents.
2. Build a network of other contractors.
3. Get my "name out there".
4. Craft CVs that get interviews.
5. Craft cover letters that get the CVs read.
6. Get recruitment agents to " . just . open . the . damn . email . already . "
7. Get to the interviews.
8. Have a great interview.
9. Negotiate rates and terms.
10. Get contract extensions (don't just be valuable, show them you're valuable).
11. Keep up to date with constantly changing technology.
12. Move from slow-lane models to where I divorce my time from my revenue (still in progress!)
13. Work out who you’re really working for!
14. (Lots more...)

I'm learning to create videos, and have a series in mind that I'll drop in here.

Hope they help.

Andy

A friend of mine is an IT guy.. pretty good at what he does but he's not very the sales type of guy. Looking for clients and all that is just not for him but he wants some gigs/contracts.

I am in sales for over 4 years now ( telecom services ) and I'd be ready to take care of that part so we can partner up to start a business.
The only problem : I'm not the IT type at all...

What's the best way to learn enough about IT to be able to sell it

I was a I.T. freelancer for 20+ years and made decent money £20K per month but the downside I was always on the road. It was long hours as clients paying you £650+ per day wanted a return and quite right. I got into freelancing as I was broke! it was simple as that. I learned new skills and kept ahead of the curve offering 110% value to my clients.
Do I miss those days no I do not as it did not scale as I could not clone myself plus operatings costs soared which crippled my net profit. I now have businesses that operate 24x7 and do the thing I like to do. Please do not be put off by freelancing I just hit a income wall and realised there must be more efficient ways to make money rather than trading time for money.

 

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[ZackerySprague]

I wrote a book on my freelance journey it sells on Amazon it's only £1.90 gives some good advice for newbies.

Computer Contractor Guide eBook : Horrocks, Mark: Amazon.co.uk: Kindle Store

Computer Contractor Guide eBook : Horrocks, Mark: Amazon.co.uk: Kindle Store

www.amazon.co.uk

If you can remember the publication Freelance Informer you were in the great era of contracting!!!!!!!!

Did you happen to have this available for the states?

I am actually signing my very first IT Contract today for self-employment.

 

[Mark Horrocks]

Did you happen to have this available for the states?

I am actually signing my very first IT Contract today for self-employment.

I will try and email it to you for free. Thanks

 

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[SenGracic]

A friend of mine is an IT guy.. pretty good at what he does but he's not very the sales type of guy. Looking for clients and all that is just not for him but he wants some gigs/contracts.

I am in sales for over 4 years now ( telecom services ) and I'd be ready to take care of that part so we can partner up to start a business.
The only problem : I'm not the IT type at all...

What's the best way to learn enough about IT to be able to sell it

 

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[Andy Black]

A friend of mine is an IT guy.. pretty good at what he does but he's not very the sales type of guy. Looking for clients and all that is just not for him but he wants some gigs/contracts.

I am in sales for over 4 years now ( telecom services ) and I'd be ready to take care of that part so we can partner up to start a business.
The only problem : I'm not the IT type at all...

What's the best way to learn enough about IT to be able to sell it

@Jon L ?

I know you're a developer and business owner, and you have outsourced your sales to an external salesperson.

How much IT knowledge has that salesperson got?

Do they just focus on getting new business, or do they help you manage the projects/accounts?

 

[townhaus]

I'm just curious, how often do you send out CV's and apply to new jobs?

Is this something that you do, each month, say, for new contracts? What would you say is the genral success rate of applications?

I decided "screw this" during uni, after a few rejections and have never applied for a job ever since (only partnership type arrangements which i've gotten through informal cold emails).

I've never spoken to a recruiter, and don't think i want to.

The whole CV/resume, interviews & assessment centres process annoyed me. Plus, there arn't a lot of companies/roles that are relevant to my ambitions.

Sometimes i've considered if i'd have been better off having a job (i would have been likely to built up saving, some career history or perhaps have a network which could have led to potential investors).

Maybe i'm being lazy, or have a bad attitude towards applying for jobs.

 

[brianF16]

It was a particular type of IT Contracting where you're on a daily rate onsite for 5 days a week.

It might start being a 3 month contract with a view to extensions.

So when I got offered one I handed in my notice and jumped straight in.

It was like walking from one job to another, but paid 3x as much, and wih only a promise of 3 months work. No sick pay, training, pension, or annual appraisals. I figured I could manage without those.

Yeah, I trust you're right - you managed without those.

Contracting is similar in my area.

Thanks for all the useful advice. I'm putting it to work.


Sent from my iPhone using Tapatalk

 

[townhaus]

What is the difference between consulting and contracting?

 

[623baller]

i've been thinking about going the contracting route but kinda killed that idea since it's still trading time for money.

interested in your thought of how you plan on turning divorcing time from your revenue, specifically the below, thanks!

"Student > Intern > Employee > Contractor > Freelancer > Agency > Productised Service > Platform"

 

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[maverick]

Good thread@Andy Black. I'd like to add to the list:

1. Set clear expectations from day 1.
What is the client/customer expecting you to do? What is the strategic reason behind it? Fix the main problem first, and start putting together initiatives to hit the strategic outcome from a different angle.

2. Set a baseline.
Get some metrics together to determine where you are on day 1. This also makes for good material to share in future interviews with new clients (e.g. "I increased organic traffic with XX% in a 3 month period doing XYZ").

3. Combine 1 and 2 to show the client you're awesome.

 

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[Potven]

Hi, did(do) you utilize also the linkedin (pull) or just solely use the printed CV and covering letters (push) when looking for new contracts?
My feeling now is that it's quite easy to score a decent contracting offers via linkedin headhunters (at least in EU). I guess the same rules of keywords apply as mentioned in your video.

 

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[RoadTrip]

I currently work as a Quality Assurance engineer (software tester) for an IT consultancy firm. Next to this I'm running a supplement company for a year now which is not nearly growing as fast as I would like.

I'm always contemplating about monetizing my skills and start helping other businesses. But the best skills I have are as a QA engineer. Demand is very high so I could easily start freelancing. The problem is I don't see how I could stop trading time for money with this.

Clients expects us to always be in-house as part of an Agile development team. And building a consultancy firm which hires out personnel seems like a lot of headache with all the people requiring management and high salaries. Finding good personnel is an even bigger challenge.

I do have intermediate experience in FB ads and beginner experience in Google Adwords. Local lead generation with Adwords in particular interests me. Work can be done on distance and it's scaleable. But I nearly don't have as much as experience as I do as a QA engineer.

@Andy Black what's your take on this?

 

[RoadTrip]

I was a contract Production Oracle DBA for 10 years. Guys like us only work for large businesses since the Oracle licensing fees are so high and DBAs are at the higher end of the contracting rates.

I started going down the path of having other contractors working for me in onsite teams, and considered creating a specialist DBA shop serving multiple big clients with a pool of talented (and expensive) DBAs.

Except I realised I didn’t want to do that type of work. I’d be dealing with employees in big businesses all the time. I was a contractor because I didn’t want to get caught up in the BS in big businesses, and because I didn’t have the mindset of an employee.

I also had visions of being at a weekend BBQ and getting a phone call from someone because some disaster had happened and we had to failover or inititate the DR plan. No thanks. I want to be home at the weekend without worrying about the pager on my belt.


I also knew I was always seems as a cost, that businesses begrudged paying for me, and did so the same way people pay for insurance.


My aha moment was when an AdWords voucher fell out of a book and I setup some campaigns for an electrician friend who was out of work, with a wife and kids and home, and who had to hand his van back.

When he rang to tell me he’d had his first phone call my whole world changed.

Whoa. I can help a person and not a big business?

I’m not just some cog in a wheel?

He sees the *value* in what I do, and I’m keeping a roof over his head?


I took two AdWords jobs to reskill and went back contracting, but this time as an AdWords guy rather than a DBA.


My take is that my IT skills *help* me be a better AdWords guy. I stack the AdWords on top of 15 years of IT and data management experience.

I’ve built my high ground.

I haven’t thrown away my technical IT skills, and knowledge of change management, incident management, root cause analysis, SOPs, etc.

I use them and be a better flavour of AdWords guy than someone who doesn’t have all that experience.


Why don’t I have FU money yet when I have such great technical skills?

Because commercial skills beats technical skills.

I have FU technical skills and a FU mindset, I just need to marry that with FU commercial skills to get my FU money.



But where I’m at is already a world apart from when I was IT contracting.

I’m probably taking home slightly less, it how I do it is different. I have automated MRR. I don’t have to be on client sites. I’m detaching my income from my time. I’m building assets I own. This thing can scale to the moon and back.


Hope that helps!


Maybe listen to that call I had with @Almantas that I linked to earlier, and the two radio interviews in my signature.



EDIT: If I had to then I’d flip burgers to keep a roof over our heads, and if I knew then what I know now about AdWords and lead gen then I’d be using that €400-600/day as bankroll to pay for website development and ad spend.

Thanks Andy for taking the time to answer. I appreciate it.

I completely agree about dealing with big businesses. We'll be dealing with employees and would never be able to make them as happy as real business owners or end consumers. You confirmed consulting is not the path I want to take.

And I don't have the mindset of an employee either. Seeing those people at 40/50/60 depresses me. That's not how I want to end up.

That's why I started the entrepreneurial journey 4 years ago. I already have multiple small and big failures under my belt. My current venture isn't a failure yet, but is growing painfully slowly. After 4 years of trying I'm becoming impatient.

I will listen to the calls you linked in your signature. Hopefully I'm getting a light bulb moment that will help me decide my path and move forward.

 

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[Tom H.]

@Andy Black I just re-wrote my resume to follow the very sensible perspective you present in your videos. My old resume contained way too much personal expression and not enough "giving them what they want". Because I find a list of buzzwords and the typical executive summary to be dumb, but if that is what recruiters and hiring managers need to do their job, I better play along and help them out.

I used to want people to hire me because they saw the special value in me and wanted me for me. But my goal is simply to do a good job using skills I've worked hard to acquire and then get money to fund my entrepreneurial projects. So my goal is getting money, not self-expression, so I should shut up and be whatever the hiring manager needs me to be, so I can do my job and get paid.

Thanks for the great videos!

 

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[Andy Black]

@Andy Black I just re-wrote my resume to follow the very sensible perspective you present in your videos. My old resume contained way too much personal expression and not enough "giving them what they want". Because I find a list of buzzwords and the typical executive summary to be dumb, but if that is what recruiters and hiring managers need to do their job, I better play along and help them out.

I used to want people to hire me because they saw the special value in me and wanted me for me. But my goal is simply to do a good job using skills I've worked hard to acquire and then get money to fund my entrepreneurial projects. So my goal is getting money, not self-expression, so I should shut up and be whatever the hiring manager needs me to be, so I can do my job and get paid.

Thanks for the great videos!

“Sell them what they want. Give them what they need.”

It’s a good lesson in business too.

 

[cviji]

This is really useful and appreciated thanks Andy as I look to transition to contracting from salaried.

Looks like you spent a bit of time up in my part of the world in Cumbria.

 

[sojeer]

Hey @Andy Black great post about IT contracting. I've found your videos very helpful. Thanks for that
I'm still the kinda new guy on the IT market, already working as a contractor (maybe too early, dunno) but with much less experience.

I was wondering, do you think that CV's and LinkedIn profile for contractors and full-timers should look different? Or it doesn't matter? - I'm asking as, still as a youngster in this field, I'm looking on both

 

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[Andy Black]

Hey @Andy Black great post about IT contracting. I've found your videos very helpful. Thanks for that
I'm still the kinda new guy on the IT market, already working as a contractor (maybe too early, dunno) but with much less experience.

I was wondering, do you think that CV's and LinkedIn profile for contractors and full-timers should look different? Or it doesn't matter? - I'm asking as, still as a youngster in this field, I'm looking on both

I think they should look different. If an employer is looking for a permanent employee then they’ll prefer to see previous permanent employment. If they’re looking for a contractor for a specific project then lots of contract work implementing that will look more attractive. So it’s a case of highlighting different things on your CV depending on what role your going for.

 

[Andy Black]

yes, I watched it and already have some ideas on how I can change it. Many thanks

Just only thinking if should I keep it as a one-pager or maybe extend it and include portfolio as well (I'm in UI/UX field), as for now I only redirect to my website through the CV.
I know that you had a lot of pages down there

Assume they only see the first page. Make it so they want to read the next page(s) or visit your site.

Now then. Who says it *should* only be one page? Your goal is to get to an interview. What would get you to the interview?

 

[sojeer]

Assume they only see the first page. Make it so they want to read the next page(s) or visit your site.

Now then. Who says it *should* only be one page? Your goal is to get to an interview. What would get you to the interview?

That's a good point

 

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[Potven]

Some interview tips:

1) Enthusiasm goes a long way​

• When I had little experience and went for interviews I'd overwhelm them with enthusiasm.

2) Let them know if you don't know​

• Interviewers want to know how you'll respond if you don't know something.
• Will you bluff your way through, or can they trust you to put your hand up and ask for help?
• I welcome the chance to say "Oh, nice. I've no idea what that is! Is it like such-and-such?".

Example for 1) and 2) above:

Them: "Have you used RMAN?"

Me: "RMAN for backups?!? Oh wow, I've always wanted to use Recovery Manager but every site I've worked on used different technology to do their backups. I'd love to know how RMAN handles x, y, and z. Blah blah."

You want them to look at their check box and wonder whether they check it or not. "Hmmm... He hasn't used RMAN, but that seems to be a positive thing seeing how keen he is to learn it."

3) Body language:​

• Lean forward.
• Show interest.
• Make eye contact.
• Smile.
• Be someone they want to go for lunch with.
• Don't overdo it, but nothing wrong with showing you're trying.

4) Leave something behind after the interview​

• Something to justify them hiring you?
• Something to speak to them after you've gone?
• Can you bring a swipe file of your research for the interview?

Go for it like it's the job you've always dreamed of. Get offered it and then make a choice.

As a seasoned PO on different projects, I would say from my experience that these rules apply in general. Even if you have vast experience and knowledge in certain field. It is always a good sign to admit one does not understand something but is willing to find out.

 

[Andy Black]

@ZackerySprague ... I don't know if you've seen this thread.

 

[ZackerySprague]

@ZackerySprague ... I don't know if you've seen this thread.

I havent, but now I have. This is some incredible stuff. I've always done perm work and never contract, I never took the chance to see how contracting could be more beneficial than perm.

This is awesome. You definitely know your stuff too with the interview process and all. In the states we don't use the term CV. More of the word of Resumes.

 

[Mark Horrocks]

Exactly what I learned. I wasn't on the road but on client sites for months or years, and at a slightly lower rate. I don't miss those days, and I still enjoy having consulting clients that I work-from-home for. Having those consulting clients helps me see where I can build products/services that can scale without so much of my time.

I wrote a book on my freelance journey it sells on Amazon it's only £1.90 gives some good advice for newbies.

Computer Contractor Guide eBook : Horrocks, Mark: Amazon.co.uk: Kindle Store

Computer Contractor Guide eBook : Horrocks, Mark: Amazon.co.uk: Kindle Store

www.amazon.co.uk

If you can remember the publication Freelance Informer you were in the great era of contracting!!!!!!!!

 

[Mark Horrocks]

Dude! Are you selling that to all the IT folks out there who think about contracting but aren't?

Anyone who is interested in contracting. I do not rely on sales on this book for my income. I also have a video courses as well. Thanks

 

[Mark Horrocks]

Thanks man!

How can I send this eBook to you?

 

[brianF16]

This is great content here. Thanks Andy and others.

I'm good at what I do and can become a Contractor. I'd prefer another 12 months experience before making the jump because of the work I know I have ahead of me on a current project will serve me well. However, I don't want to be saying the same things further down the line and still haven't made the jump. Being a contractor also gives me more freedom to work on side hustles.

Did it take much capital to fund your move into the contracting World? I've very little debt but also very little savings.


Sent from my iPhone using Tapatalk

 

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[brianF16]

You might want to read this story:

• www.thefastlaneforum.com/community/threads/are-you-already-employed-to-solve-problems.68434

When I went contracting I was single with no dependents, and had run up debt on credit cards doing stupid things like going on holidays and partying hard.

Within two months of contracting I'd paid the credit cards off and was saving for a deposit on my first investment property.

Are you sure you really *need* to wait another 12 months, or is that just a story your telling yourself?

Thanks for the link. I had already read it and it did cross my mind more than a few times that maybe I should just disregard what I can learn over the next 12 months and leap into contracting because I'll gain lots of valuable knowledge in that route too. That and yeah, being honest, part of this is an excuse.

Did you start contracting a bit on the side before making a full break or make the clean break and force yourself go make it happen - e.g. Earn enough to survive each month for x no of consecutive months and therefore reduce the risk of failing or just say f*** it and push yourself?


Sent from my iPhone using Tapatalk

 

[Andy Black]

Just realised I talk about my IT background in the first part of this call:

• AndyTalks with @Almantas about Making Plans and Making Progress

 

[Andy Black]

Bump for all you fresh grads looking for jobs. See that first video? It’s how you need to look at job-hunting and the role of your CV.