As a contractor, can you work for a lower rate?

As a contractor, can you work for a lower rate?

Q: As a contractor, can you work for a lower rate?

A: Surely, you can. It is in your employer's best interest to pay you as little as possible.

Are your co-workers willing to talk about rates? If they do, take their info with a grain of salt. Why? Because they might exaggerate. And because their backgrounds might not be the same as yours.

There are many ways to leave money on the table.

You will likely work for a LOWER rate, if you ask your recruiter what your hourly rate should be. Why? Because it's in their best interest to pay you as little as possible.

You will likely work for a LOWER rate, if you "go permanent" with a contract service firm. Because, for them, 'permanent' is a euphemism for 'temporary' at a lower rate, zero per diem money, zero overtime money, and zero job security.

You will likely work for a LOWER rate, lose your independence and become increasingly dependent on your recruiter, end client and their low rates, if you rely on your recruiter for cheap housing or transportation.

You will work for a LOWER rate, and you will also get stuck with the lower rate, if you agree to a lower rate, based on a promise of a raise. Because, even if they intend to give you a raise in 12 months, most durations are shorter than 12 months.

You will likely work for a LOWER rate, if you underestimate the U.S. cost of living, and if you think you can leave money on the table, and save money later on. For example, do you save 25 cents on a $1.99 burger? Or do you lose ($5.00 - $0.25 =) $4.75 on it, when you have to spend (2 * $2.50 =) $5.00 to get to the restaurant?

You will likely work for a LOWER rate and get stuck with your lower rate, if you underestimate the power of the boom and bust economy. Because, when your current contract folds during the next recession, you won't likely find another, similar contract at a higher rate. Why? Because of the recession. And because contract work flows in the feast or famine pattern.

You will likely work for a LOWER rate, if you underestimate the power of recruiter databases. When your current contract folds, you won't likely find another contract at a higher rate. Why? Because your recruiters will remember the lower rate you negotiated earlier.