[tptacek]

A 3 month contract is a huge engagement for us (but then, our bill rates are much higher than the one mentioned in this thread). So, yes, I think we're talking about two different concepts of contracting/consulting/freelancing. You're doing staff augmentation, we're doing consulting/freelancing.

We probably both agree that freelancing is a way to make more money than you would on a steady salaried job. But it also comes with markedly increased risk, which is why it pays more.

[mtrimpe]

I was expecting you to tell me to raise my rates, since after reading my comment it seemed that what I was describing is what you'd expect to happen to an underpriced commodity with limited availability.

I agree with seeing freelancing as a way to avoid paying a third party for doing sales (marketing & negotiation) and finances (bookkeeping & buffering) for you. In many cases and for many people it's also better to outsource those tasks to your employer.

P.S. Do you think you would have trouble staying 100% utilized if you were charging $100/hr as originally mentioned?

[StavrosK]

Probably not, but since they bill "much higher" than that and get 80% utilization, they would probably be leaving loads of money on the table. I'd see 300% utilization for $10/hr as well.