Can a salaried computer programmer manage part-time contracting?

Question

I'm a salaried computer programmer, and I make a pretty good living at it. I've been thinking of supplementing my income by handling a few part-time, paid consulting opportunities. I'm worried, though, that tinkering on the side might burn me out, that it might affect my work, or that it might get me in trouble at work if they find out about it.

I'm also wondering what to charge. Is there a rule of thumb I can use to turn salary $X into an hourly consulting rate? Let's say I make $50k as a programmer. I figure that translates into $25/hr, not including benefits. Should I ask for maybe 50% more than that for hourly consulting part-time? 100% more? If I made $100k/year, should I ask for $100/hr?

Any advice from folks who have tried this sort of thing already? Am I just asking for trouble, or is this a great, go-getter sort of idea?

Answer 1

Firstly, this sort of thing is generally against contracts you've signed, so make sure you check that first. And regardless, I'd run it by your employers, just to get some opinions (and maybe a raise instead).

Secondly, you ask for double. If you get x per year, ask for (x/1000)*2 for overtime contract.

Thirdly, you'll find this difficult. At first it may be okay, but meetings will coincide with work, you'll have deadlines for both and need to sacrifice one, and generally it'll be stressful for you.

Give it a crack if you wish, but be prepared that you may need to drop one in place of the other.

Personally, I say don't do it, and look for a better day time job.

Answer 2

The first thing you have to check is that if your current contract has an item saying that you cannot have an additional job.

Answer 3

The rate you get will be decided by the market rate in your area, your experience level and, to some extent, how well your client knows you. Some of your colleagues probably know what the market rates are in your area so ask them. If you are just getting started, you may want to volunteer your services at a local non-profit org or work at a reduced rate until you get a few small successful projects under your belt.

You may want to consider doing subcontract work to see if you like it. For subcontracting, if you are getting $450 a day then chances are the main contractor is getting double or more for your labor ($900 a day).

Another good thing about subcontracting is that the a lot of the legal paperwork, client management and professional liability insurance are taken care of for you. Hunting for clients can also be a hassle if you are not naturally outgoing. Networking is an absolute must for a freelancer.

Answer 4

Just bear in mind that this can become pretty difficult. Don't know if you have a family, but going from a hard days work, straight home to what is effectively another hard days work can be a bit wearing.

It's also worth bearing in mind that if you are used to working in a team, then you might find working on your own, with no backup, a little different.

Answer 5

When I hire on at any job, contract or direct, I always am up-front with the fact that I contract on the side. My contract rates are dependent on who I'm contracting with. I mostly contract with former employers and their customers and my rates are based on my income at the time I was employed by them.

Answer 6

I do this as well. Remember that your taxes for self employment are high, so double your normal, non-contract rate is a good bid.

Be rigorous in your accounting and planning, and honest with the side contract that you are in fact moonlighting and not often available during the day. Save vacation and personal time from your day job to attend side job meetings and make deadlines.

It can be exhausting, but if you limit it to short periods, it can be done and will indeed help your bank account.