Following is an explanation of how freelance developers can use the IQ Tech Pros network to gain benefits and find tech jobs:
The IQ Tech Pros network is designed to help you make and keep more money (after expenses) than you could working alone, or with another company.
How can we say that? Well, let's roll the numbers.
By the way, unlike most companies that keep you in the dark on what they charge the customer compared to what they pay you (because there is usually a pretty large difference), IQ Tech Pros is transparent—you're completely aware of how the revenue is split and the network business model.
Tech Jobs On Your Own
Let's assume you find a 10-month consulting project on your own. You may have spent 10-20% of your time prospecting and networking just to find it so it costs you 10-20% of your billable time just to "get the lead." You bill out at $100/hour, but you really only get $80/hour over the year (because you spent so much time finding, scoping and bidding the project before you even started).
Or perhaps you find a consulting/development project through one of the popular independent IT services, like Guru.com. You find it relatively quickly, but you will usually have to bid at least 10% lower than your normal price to get it (and even the experienced bidders usually only get about 20% of their tech jobs). Plus, they charge 10% of the bid as part of their service. So again, your take home is only $80/hour.
Either way, you still work as an freelance 1099 consultant, have to pay 12.5% self-employment tax, usually have to cash flow the deal completely (which means you live on 8-12% credit cards between payments), run the risk of not getting paid, have to manage the project by yourself and seldom get competitive per-diem rates if travel is required. Plus, you do not have a 401k plan, business liability insurance, or discounted group health insurance. Your overhead cost is high.
Hired by a Temp Firm
Let's assume you are hired by a "temp" firm for project work. In these cases, they might charge the client $100 per hour, but, at best, you will only earn $40-$50 per hour. Plus, you still have an independent 1099 status and the other missing benefits.
Hired by a Large Consulting Firm
Or let's assume you hire on with one of the big consulting firms–like Accenture. They charge $100 per hour for your time (you seldom know your bill rate). You'll be lucky to get 40-60% of that amount (the rest is tied up in massive overhead to support their big buildings, executives, advertising, etc.)–so at best you'll make maybe $40 per hour.
Now, let's see how it works through the IQ Tech Pros network. You can see why over 20,000 consultants have joined already.
The IQ Pros Network
Let's assume you work on tech jobs that you find on the IQ Tech Pros website and you typically bill out independently at $100 per hour:
- 20% is paid back to IQ Tech Pros. This is margin, but it is also used to pay for 10% referral fees (to network members) for many of the deals.
- 10% is used as overhead expenses. This includes IT systems used to manage the projects and network database, accounting, sales, tax payments for network members, HR to manage benefits, project management, attorney fees for liabilities and possible collections.
You KEEP 70% of the bill rate. Plus, you get Fortune 500 benefits. In this example (click here to view), you can take home $74.50 per hour with IQ Tech Pros versus only $66 per hour working independently, $41.90 with a staffing company or $40 with a large consulting company. That means you take home up to 86% MORE money simply by working with the network (and your life is easier). Plus, if you refer the project, you’ll make an additional 8% of the bill rate as a referral bonus. You'll also enjoy the following benefits:
- W-2 Employee. You are signed up as an employee of IQ Tech Pros. That means you pay LESS in taxes because you don't pay the full 12.5% self-employment tax (IQ Tech Pros pays part of it). You also don't have time consuming, expensive (CPA tax service) and complicated tax work with all the associated documentation and accounting. And you no longer have the higher-than-normal risk of audits as a self-employed contractor.
- Per Diem. You get an easy-to-account-for per diem if you are working 50 miles or more away from your permanent residence. You don't have to do after-hours accounting and or remember to keep all your receipts to get reimbursed.
- Health Insurance. You can participate in the company PPO health insurance and save $400-$600 per month on premiums versus the cost of securing your own insurance. Family insurance usually only cost $400 per month for your contribution.
- 401k Plan. You can participate in the IQ Tech Pros 401k plan and have the amount taken out of your check—pre-taxed (saves money on taxes).
- Paid Bi-Weekly. No need for billing, invoicing or collecting (think of all the time saved). And you won't wait 30-90 days to get paid–so you don't have to float your cash with interest bearing credit cards.
- Charge More. You are able to charge 10-15% more for your services under the IQ Tech Pros umbrella because companies usually under-pay independent contractors. So, in this example, you would be making $110 rather than $100 per hour!
Contact Us now to find out more.