The “Chris Brogan Makes More Money Than You Do” Round-Up
Chris Brogan, famed communications consultant, author, and President of New Marketing Labs, set the social media world a-twitter (if you’ll pardon the pun) when he non-chalantly shared his consulting day rate in a recent blog post. The number, an impressive $22,000 a day, struck many readers as extremely high, particularly when juxtaposed against another blog post in which Chris solicited an unpaid intern to be a part of a new project he has in the works.
Now, in my opinion, if someone is willing to pay him $22,000 to do what he does, then Chris deserves to earn that kind of money. This is the United States of America baby. If you’re a consultant and you want to get paid big bucks, set high rates and do awesome work. We are all the keepers of our own souls. Do what works for you and don’t sweat it if you’re not at Chris’ level of success.
Of course, I’m not here to ramble on about my thoughts on the issue (I already did that in a comment here), what I’m interested in is bringing together some of the interesting and insightful analysis that sprung up AFTER Chris dropped the bomb. So, without further ado, here are my three favorite blog posts on Brogan-gate! (Is it okay to attach “gate” to this, or am I overreaching?)
- Does Chris Brogan’s Day Rate “Anchor” the Cost of Social Media Consulting?
- So How Do You Figure Out Your Self-Worth?
- Why Do Price Discrepancies Exist and What Do They Mean For You?
In an extremely insightful post over at Incentive Intelligence, Paul Hebert explains how, due to his level of celebrity in the social media sphere, Brogan’s revelation has set an anchor for the high end costs of social media consulting. In other words, though there are those who may charge more, Brogan’s fees are a good benchmark for what the highest earners could be making. Obviously, the majority of consultants don’t make that kind of scratch, but Hebert explains that Brogan’s anchor may still help lower or mid-level consultants earn more money.
Quoting from the post:
“Assume you are a very, very good social media consultant with great references (maybe even Chris himself) but you only charge $1,000 per day. Congrats – you can probably give yourself a big raise. Not that you’re doing anything better – just that the anchor for the work you do is now known and you can point to it and say – “hey, I do similar work as Chris and I’m only $10K per day.” Your clients may now think your $10K rate looks like a bargain. That’s what anchors do. They provide context for discussion and allow for comparisons.”
In an interesting post at Justin Kownacki’s blog, Justin expounds upon some of the same themes brought up in the Incentive Intelligence post. In essence, Justin says that the reason people were upset over Brogan’s day rate is because they never knew that money like that was a realistic goal. Rather than sulking about how much money you’re not making, however, Justin suggests that you should reconsider how valuable your own services are.
In an excellent six-step strategy, which I won’t repeat here because you really should just read it at his blog, Justin outlines some of the ways that you can accurately determine your own consulting rates.
Quoting from the post:
“Valuing yourself according to other people’s self-estimations is the easiest way to drive yourself crazy. But valuing yourself according to your own self-estimation is the easiest way to go hungry, because you never truly understand what your assets are actually worth to the people who don’t know what you know.”
In a wonderfully lengthy and deeply analytical blog post, Mike Myatt, Chief Strategy Officer for N2Growth, explains the important role that pricing plays in all aspects of business, and why some people will pay $30,000 for a Rolex but “feel a Timex isn’t worth more than $50 dollars.”
What I like the most about Myatt’s post is that he carefully explains some of the complex issues that can impact pricing – the strength of your brand, your competition, whether there is a demand for your services – and how this complexity must be acknowledged in order to fairly assess your own value.
Quoting from the post:
“Bottom line…pricing is not a taboo subject to be avoided, but rather a key metric that needs to be well understood as well as proactively measured and managed. Pricing needs to be dealt with in the most embryonic stages of strategic planning and needs to constantly be evaluated based upon changes in market dynamics”
Do you have any insights into Brogan-gate that you’d like to offer? Share your thoughts in the comments.