author here Do you have examples on how you would correctly capitalize on this expertise? I put some things that have happened since writing the book in the outcomes section but so far they have all been free speaking engagements.
Basically $1000+/day consulting rates. You still have to do the legwork of getting the gigs, but justifying those kinds of rates are much easier when you literally wrote the book on the subject of your contract. Having written it for a well known, respected, even iconic, publisher does a lot of the work here too, self publishing would have a lesser effect.
$1000/day is $125/hour, which is a standard hourly rate for software developers. I would expect authorhood/extreme-subject-matter-expert to yield at least a 2x premium.
$125 is pretty much the de facto rate regardless of location (give or take a small percentage). But you're missing several points in the equation that make that rate much much less than $260k/yr.
1. You're not differentiating between the rate that's charged and the rate that's paid to employees. I am billed out at $185/hr. I make a small fraction of that as an employee, even after benefits.
2. You're not including any time off - you're figuring 40.0 hours for 52 weeks straight which is ridiculous. US employees are much more likely to be 48-50 weeks. Europeans are at what, 20 weeks a year or something now? (I jest)
3. For consultants (who are not employees), if you want to bill 40.0 hours you're going to be working 60-70 when including all the marketing and admin work, or you're outsourcing that which eats into your base rate considerably.
4. When I was consulting a big reason why was freedom and time off. I billed $125/hr but made probably $50k/yr because I only worked 25-30 hours a week all in. That included all my marketing, proposals, billing, chasing invoices, and actual billed work. It was great seeing a direct financial impact to the amount of work I did, but also sucked because if you have no motivation for more than a few days that impacts you financially for weeks.
$125 an hour isn't crazy. I billed that doing some consulting for a company in Memphis maybe five years ago, and that was a no negotiation involved arrangement. I'd worked there before, so they knew me. I threw a number out there and they pretty much went, "alright, sounds reasonable enough".
I know of at least one consulting shop that bills corporate clients $250/hr for mostly general software development in SF. The employees only see about ~1/3 of that amount. As a bonafide expert with a significant addressable market (expertise isn’t valuable unless you’re solving problems people have) and a knack for self promotion, it wouldn’t surprise me to hear $500/hr in SF/NY. It really depends on who your clients are and what kind of track record you’ve got to point to.
Not to mention it matters where the money's coming from.
If you just closed a $40M round of VC financing, $500/hr for a 1-week project ($20k?) from someone you know isn't crazy. If you're a bootstrapped company and that's 6 weeks of revenue it's not as easy of a decision even if you think the ROI is there.
$1000/day is pretty standard, and might even be low for someone who has the expertise and communication skills required to write a book. Even if that person had not written one.
Agency rates bring an entire agency, though. Speaking from experience, companies will pay other companies multiple thousands a day for software implementations without a second thought but typically will fight paying a single person $250/hr to do the same job (even if it's a 1-person job).
The free speaking engagements is the first step. After you do enough of those, you will get invited to international and big name conferences as a keynote speaker (if you're good at it).
At that point, hiring managers will start contacting you about new jobs with big name companies, for big time salaries. That is where you get the leverage. You'll also start getting offers for paid speaking gigs for both public and private talks. The private talks are nice because they pay well and you almost always walk out with a gift and a job offer.
I never finished the book I started because the publisher pulled the contract when 12 (yes 12) books on the subject came out in the same month.
But I did all those other steps and it worked out pretty good for me.
This was many years ago. I was writing a book on cloud computing before it was a thing. But it became a thing in that one month. It all worked out though. I ended up editing AWS for Dummies later on, and my coauthors managed to use some of our content in other places.
