In this article, I will guide you thoroughly to become a professional coach or consultant to make money as a consultant. Of course, it is not easy and you will put a lot of effort to make it. But you still can make a lot of difference by motivating and guiding others.
But before everything you need to ask yourself “In what field do you have expertise or experience? Marketing? Nutrition? Sport? Education? Bee breeding?” It doesn’t matter because, in any field, there are people who need your advice. In other words, you can earn money from your expertise in the form of consulting others.
This article will guide all the steps and prerequisites of starting a consulting firm from ground to fame and popularity. I am well confident this article can help you make money as a consultant.
What Is a Consultant? How to Make Money as a Consultant?
Consultants are people who guide their clients to achieve a specific goal by using their experience or knowledge. In this way, customers can overcome problems more efficiently and achieve success.
What Is a Consulting Firm, Do Consultants Make a Lot of Money?
There are two categories of consulting firms, the first category is those that only offer their theoretical instruction to clients over the phone or face-to-face. For example, an academic advisor tells their clients how to choose a major.
But in the second category in addition to theoretical guidance, the firm also provides practical support to clients in reaching their goals. For example, in a restaurant startup, the consulting company provides both startup consulting and restaurant startup services to its customers.
6 Ways to Make Money as a Consultant Firm.
If you think that in a consulting firm, the only source of your income is consulting fees, then you are wrong. They are multiple ways you can make money as a consultant firm. So, in the following, you will get to know the income models of a consulting firm.
Many consulting firms make money by providing related services. For example, a consulting company set up a digital currency mining farm. in addition to consulting fees, they also receive a certain amount of money for setting up the farm, or providing signals for buying digital currency, etc.
In most cases, when customers are going to cooperate with a business to set up their workshop, store, restaurant, etc., they entrust the purchase of the product to them. In this situation, the consulting company can both earn profit from the sale of products and can receive a part of the total purchase budget as its salary for purchasing and setting up the products.
Make Educational Courses
One of the most important income models for consultants’ firms is education. Today, consulting firms can earn a good income by conducting private courses for a client or public training courses.
Cooperation In Sales
Yes, many consultants and consulting firms refer their clients to their trusted stores to purchase products. As a result, the owners of these stores give a part of the profit to the consultant in exchange for this reference.
Finally, as you know, every consulting firm charges a fee per hour for their services and assistance. This amount can vary between $100 and $1000 per hour. You can set up a fee structure for your company and charge your clients based on your policy.
How to Start a Consulting Firm?
Well, let me take you to the point and explain the entire path to becoming a high-paying consultant.
Choose Your Field of Expertise
First of all, you need to determine what is your field of expertise, and what are you good at. For example, instead of becoming a restaurant and cafe startup consultant, just become an industrial restaurant or coffee shop or traditional restaurant startup consultant! In this way, it quickly becomes a brand among interested audiences. As a result, you can apply your expertise to make money as a consultant online or in person.
Create a Sample of Your Work
In some businesses, the existence of a portfolio is very important. For example, if you are a sales consultant or a digital marketing consultant, clients probably ask you to show them your portfolio.
Considering this, if you are a beginner, it is wise to offer your services at a low price or even sometimes free. This way gradually you can gain regular clients to make money as a consultant.
Determine the Competition Advantage
I don’t want to say that the consulting industry is well saturated because at least in the USA there is a lot of opportunity in this field. Of course, there is a lot of competition in this field too. Therefore, to compete, first of all, you need to determine the competitive advantage.
This advantage is what makes your audience come to you instead of your competitors. For example, the fact that an entrance exam consultant supports his audience for free for up to 3 months is a competitive advantage. Or the fact that a digital marketing consultant offers his video training for free to his clients is a competitive advantage. So, you may also find a competitive advantage for your business to evaluate your firm.
Well, we have reached one of the most important parts of our work. In this section, you are going to plan for visibility and marketing. How should the audience know you and trust your brand? Keep reading
Website is important for consulting businesses in several ways:
- First of all, the site increases the prestige of your work.
- Audiences can easily get to know you and your services by viewing the pages of the site.
- Many audiences on Google search for different terms to reach a business site like yours.
- Audiences will decide to cooperate or not with you by reviewing the examples of work you have posted on the site.
Optimize Your site
After your site is ready, you need to well optimize it for google and readers. When the site is optimized, it will be displayed on google search for the audience and it will attract users. You can optimize your content by hiring an SEO expert, or you can just practice learning SEO. It makes take time by you will eventually learn it.
Create an Instagram account
If you know that your audience is people who are active on Instagram, you should spend a part of your budget and focus on Instagram. For branding in this social media, you need to produce attractive, educational, and extraordinary content.
Especially for consulting firms, LinkedIn is a very important tool for growth. Because LinkedIn is a network where people often look to find experts to help them with their work and growth. So, make sure your presence on LinkedIn, and share useful content with your audience.
Hold an Event
Among the new marketing techniques that have a very good yield these days is holding an event. Ideally, you can hold a seminar by renting a hall. If you don’t have enough time, budget, and conditions for such work, you can take help from the webinar to hold an event so that new audiences can get to know you. In addition, you can introduce yourself to the audience as a sponsor of an event.
One of the most important reasons for brand success is building trust. Businesses that do not go for trust-building techniques are less noticed by the audience.
But how to build trust?
- Make sure that the audience will see your site after searching for your brand on Google.
- Display the image and the logo of the brand on the site.
- Introduce team members on the About Us page.
- Post a behind-the-scenes video of your business on Instagram.
- In general, post a lot of videos on Instagram, and other social media accounts.
- Be sure to organize free events such as webinars, seminars, etc. from time to time and post it on social media pages.
- Post videos of counseling sessions.
Define Your Pricing Strategies
Do you know how much money consultants make? It can be challenging when you start consulting firm and puts a huge impact on your firm.
If it is challenging, let’s move on to pricing strategies. In this section, you need to choose how much the audience should pay for each hour of consultation, courses, and other services. To choose prices, you should pay attention to several important points:
The Average Price of Other Competitors
First of all, you should go to the competitors and see what prices they charge for their consultation. A good choice to start with would be to determine prices and market averages. For example, if competitors charge $100 per hour, you should set a price between $50 -$100.
Make a Distinction
Some experts suggest that you should have a little difference in pricing compared to competitors. For example, put 5 to 10 percent higher or lower prices on your services. If it’s up to me, I’d say it’s better to test the effectiveness of this by yourself.
Brand Trust and Popularity
Another point that you should pay attention to is brand trust! This means that if you see that one of the competitors’ prices is 10 times the market norm, you must not choose a 10 times price. Because that specific firm has built trust and popularity over time. And they have chosen the price based on their reputation.
Do Not Forget these Advantages!
Considering the importance of the topic, I wanted to remind you once again that you should not neglect the importance of competitive advantage! For example, a friend of mine works in the field of SEO and instructs others. As an advantage, checks his website before the client’s presence.
In this way, unlike the other competitors, the whole consultation session does not take up the time of the session just to give solutions to the past and to review the site. This technique can be a great alternative to reducing the price because reducing the price often reduces the value of your service in the mind of the audience.