Company CEO Holds Drawing for His Salary

RX Processing Corp.'s CEO Peter Fiorillo is serious about supporting the passage of the Dorgan-Snowe bill that is currently trying to make its way through Congress. He is so serious that he has implemented a campaign that allows citizens to enter into a lottery to win his first year's salary: 500,000 shares of company stock.

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Company CEO Holds Drawing for His Salary

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RX Processing Corp.'s CEO Peter Fiorillo is serious about supporting the passage of the Dorgan-Snowe bill that is currently trying to make its way through Congress. He is so serious that he has implemented a campaign that allows citizens to enter into a lottery to win his first year's salary: 500,000 shares of company stock.

The shares have a market value of around $100,000. By doing this, Fiorillo hopes to draw attention to the grassroots efforts of not only RX Processing Corp. but countless others who are devoted to the legalization of prescription drug importation to the United States.

RX Processing Corp. is a company that utilizes licensed American pharmacies and a licensed pharmacy group from Canada to help Americans obtain prescription drugs from safe and affordable suppliers outside the United States.

Many other countries, including Canada, offer the same medications for a much lower cost to consumers. As for safety, Canadian standards meet or exceed U.S. Food and Drug Administration drug safety requirements, Fiorillo says.

The growing issue of rising U.S. prescription drug costs is causing concern across the country. One of the biggest sectors of the population dramatically affected by this problem is senior citizens. Many are bound by fixed incomes and do not have full prescription drug care coverage.

Overall, there are upward of 43 million Americans that are uninsured, and millions more that have insurance yet do not have comprehensive prescription drug coverage. Due to this discrepancy, many people are faced with daily decisions that force them to choose between life saving medications and other needs.

Due to current regulations, the FDA does not advise individuals to import prescription drugs, even though many Americans are requesting the U.S. government to allow them to do so. The goal of the Dorgan-Snowe bill is to change this situation.

One of the biggest benefits of the bill is that it would not only allow the importation of prescription drugs from Canada - where prescription drugs are 30 percent to 80 percent cheaper - but it would also revolutionize the health care industry by opening up the doors to competition and choice. Growing public pressure is what prompted the drafting of the bill in the first place, and grassroots efforts within the senior community are helping to propel the cause even further.

Consulting Salary - What Can Your Business Afford?

Consulting salaries are an important factor in your ability to hire the type of talent you will need as your business expands. Use the Triple Billing Rule to determine an hourly billing rate that will support your ability to offer potential employees an attractive consulting salary.

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Consulting Salary, Consulting-Salary

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Consulting salaries are an important factor in your ability to hire the type of talent you will need as your business expands. You will probably do much of the work yourself, but as your business scales up you will need to employ others to help you. The consulting salary and payment scheme you offer will be key to attracting and retaining top talent.

You need to ask yourself very early on in your business operations, "Will I be able to afford the kind of technical person that has the skills that are needed for sweet spot clients?" If your business is only generating enough revenue to cover a consulting salary of $27,000 per year, you might be in for a shocking answer.

Consulting Salaries and Scenario Analysis

When we think about consulting salaries we have to use the triple billing rule: 1/3 of revenue goes to sales and marketing, the second third goes to taxes, insurance, and administrative expenses, the final third includes consulting salaries as well as all the other business expenses.

A great tool for figuring out potential consulting salaries is an Excel spreadsheet set up for scenario analysis.
Run different hourly billing rates through the analysis
Allocate the overall revenue into the general thirds
Take out a reasonable amount for general businesses from the final third
Analyze what is left for consulting salaries

You should try to run billing rates between $75 per hour to $125 per hour and come up with a rate that will support a consulting salary of $40,000 and up.

The Bottom Line on Consulting Salaries

The overall revenue of your business must be able to support a consulting salary that is sufficient to attract good, solid employees. A some point you will likely need to hire some help. If yo use the Triple Billing Rule you should be able to set an hourly billing rate such that you can afford to pay an attractive consulting salary to yourself and your future employees.

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Consulting Salary - Are Your Rates Salary Equivalent?

Consulting salaries are very closely related to the hourly billing rates that you charge. Before you launch your business you need to make sure that your total revenue will allow to pay your self, and any future employees, an attractive and competitive consulting salary.

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Consulting Salary, Consulting-Salary

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Consulting salaries are very closely related to the hourly billing rates that you charge and the salaried equivalents that you can afford to pay both yourself and others down the road. The consulting salary you expect must be affordable given your hourly billing rates. This consulting salary must also be enough to attract sales and technical staff as your business scales up. If you don't set your rates at an appropriate level then you won't be able to offer competitive salaries to future employees and your business growth will falter.

The Consulting Salary Equivalent of $75 an hour

$75 per hour sounds like an attractive rate. Most people will equate it with a yearly consulting salary close to $150,000. The assumptions are that there is little overhead and people with their own businesses hardly pay any taxes.

Unfortunately, figuring out a consulting salary is not that simple. You need to remember that you'll only be able to bill out about 75% of your week. This takes you from a starting place of a $150k consulting salary to $112k per year. That still doesn't sound bad though, right?

There’s still something you're missing here. It's called the Triple Billing Rule.

Triple Billing Rule

Your overall revenue is actually split into three. 1/3 goes to sales and marketing, 1/3 goes to taxes, insurance, fringe benefits and other overhead items. The final 1/3 goes toward a consulting salary. If we take our $75 per hour scenario, suddenly we have a maximum consulting salary of $49,500 but we haven't accounted for the other business expenses that come out the final third.

When you look at consulting salaries realistically it is easy to see how setting billing rates is very complex. Your rate has to be high enough to pay yourself or a contractor/employee a decent consulting salary but not so high that it impedes finding clients.

The Bottom Line on Consulting Salaries

Consulting salaries come out of the final third of overall consulting revenue: marketing, sales, taxes, insurance, and administration all take precedence. When you start a computer consulting business it is important that you are able to pay yourself a consulting salary that is equivalent to what you would expect to make working for someone else. You may be an employer someday and you want to make sure the consulting salary you offer will be sufficient to attract the talent you are looking for.

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