More fair cuts on bill rate?

Have any consultants here been on a project where you knew the bill rate was really high but you only got a tiny piece of it (like paid $60/hr and billed out around $200)? Does anyone know of a company that pays consultants well – like 70-80% or more of what they’re getting?

Not quite sure I understand the question, can you clarify?

It sounds like you’re suggesting you bill $200 and the company pays you $60?
(which sort of smells like fraud/tax evasion on the part of the company ???)

The question was in reference to consulting groups. It seems like they only pay 20-30%, maybe 40% at best of the bill rate to the their consultants. Have you encountered any that offer a more reasonable cut?

Ahh, I see what you mean.

My first experience of this was when I first went Freelance in 1991 and did some work on behalf of the company I used to work for.
I took on a job at £250 a day, thinking it was quite a good rate, and finished in half a day, so the guy took me out for Pizza where he told me I was expensive, but well worth it.
I queried this thinking the rate was quite reasonable, only to be told I was being charged out at £850 per day.

Thinking my old company was taking the piss, I told the guy that if he had any more work I was available directly for £250 a day.

  • I ended up with many years worth of freelance work , and 20 years ago £250 a day was Ok.

So I guess to answer your question “yes”.

A more reasonable cut would be “zero” … (!) …