Following is a list of case studies from different consultants who have worked with IQ Tech Pros. Please click on a case study to jump to its place on this page.
- How traditional vendors underpay consultants...
- How contractual insurance limits can affect your income...
- How cash flowing large projects can affect your income...
- How independent status can impact health insurance costs...
How traditional vendors underpay consultants...
John is a freelance SAP consultant in the energy industry. He was offered a one-year contract to join an SAP FICO enhancement project for a Fortune 100 corporation.
Working through vendors. The company’s procurement rules require that consultants be hired through their VMS (Vendor Management System)–which is run by a few primary vendors. Each of the vendors has their own procurement policies. Most notably, they do not work with 1099 sub-contractors. John is forced to join a primary vendor as a W2 employee to work on the project.
Working independently, John would earn $90/hr on the project. As an employing of the primary vendor, he will earn $60/hr for the same work. John soon learns that his vendor is billing his work to the client for $120/hr–he is earning only 50% of the bill rate for his work.
Higher wages through IQ Tech Pros. John joined IQ Tech Pros. He continued working on the project and began earning 90% of his client bill rate. John was now earning $108/hr–80% MORE than he was earning with the primary vendor.
|John's income with IQ Tech Pros
|John's income with the Primary Vendor
|The IQ Tech Pros Difference
How contractual insurance limits can affect your income...
Nancy is a freelance SharePoint Developer working in the healthcare industry. She is asked to join a project with a large healthcare organization. The organization’s Master Services Agreement requires all contractors to carry the following insurance limits:
|$1M in General Liability Insurance
|$2M in Professional Liabiliity Insurance
|$3M in Worker's Compensation Coverage
Denied affordable coverage. Because Nancy had no prior history or coverage, she didn’t qualify for these insurance levels. The required coverage would cost her $15K-$20K. Unable to afford the required coverage, Nancy was forced to join a large vendor already under contract with the company in order to work on the project.
Loss of income through vendor. Nancy was required to join the vendor as a W2 employee and is offered $50/hr. to work on the project with no other benefits. Nancy had negotiated a rate of $80/hr to work directly with the client and later learn that the vendor was billing the client $120/hr. for her service. That meant Nancy was earning only 42% of the client bill rate for her work.
Coverage and income with IQ Tech Pros. Nancy joined IQ Tech Pros. She worked on the same project, received the required insurance coverage and earned 90% of her client bill rate. She was now earning $96/hr–over 90% MORE than she was earning with the primary vendor.
|Nancy's income with IQ Tech Pros
|Nancy's income with the Primary Vendor
|The IQ Tech Pros Difference
How cash flowing large projects can affect your income...
David is a freelance PeopleSoft Developer working in the oil & gas industry. He is asked to join a project for a Fortune 100 corporation. He will earn $80/hr.
Trouble getting paid. David billed his services every two weeks. His contracted set payment terms as net 30 days. An experience contractor, David knew that net 30 never really means net 30. He hoped to collect his earnings net 45 and didn’t expect a paycheck for about 60 days after his start date.
In the meantime, David used his credit cards for bills and daily expenses. He considered credit cards as the cost of doing business. During the project, David calculated that he was losing almost $2/hr on interest costs alone. Plus, as an independent contractor, he had the risk of never getting paid if the project were discontinued.
IQ Tech Pros cash flows the deal. David joined IQ Tech Pros to work on the project. IQ Tech Pros cash flowed the entire project and provided David with bi-weekly paychecks. With IQ Tech Pros, David did not have to worry about collections, credit card payments or interest charges–and he was taking home 90% of his bill rate.
How independent status can impact health insurance costs...
Jill is a freelance .Net Web Developer working in the academic sector. She is offered a project by a large corporation in the industry and will earn $60/hr.
High cost for health insurance. After the project began, Jill contacted her insurance agent to get family medical coverage. When applying, Jill disclosed that she was prescribed medicine for high blood pressure.
After waiting 30 days for processing, Jill was approved for insurance, but it would cost over $1,200/month for full family coverage–and she was required to carry a $2,000 deductible.
Benefits through IQ Tech Pros. Jill joined IQ Tech Pros and enrolled in the affordable group health insurance plans provided to network members.