The Pros and Cons of Consulting with Expert Networks

Throughout my professional journey, I have had the pleasure of engaging with more than 200 different expert networks, representing a dozen unique companies. Reflecting on this experience, I can confidently say it has been a rewarding endeavor.

Pros of Consulting with Expert Networks

One of the most appealing aspects of this role is the recognition of expertise. Clients, typically comprising investment managers and management consultants, are eager to seek my insights and opinions on various business and industry trends. They value this input so highly that they are willing to pay top dollar for an hour of my time. These discussions are often intellectually stimulating, with clients asking sharp and provocative questions that lead to meaningful critical thinking and strategic direction.

The compactness and convenience of projects also stand out. Most client engagements last exactly one hour, scheduled at the convenience of the client, but more often than not, also suitable for moments of downtime. I particularly enjoy completing these projects after my regular day job, where there is little to prepare, no deliverables to complete, and no follow ups required. After the call, hanging up the phone marks the end of work for the day. The ease of payment from expert networks, often processed with a few clicks, ensures that there is no effort in chasing down payments.

From a financial perspective, the remuneration is hard to beat. I charge $500 per hour for most expert networks, and occasionally, there are paid surveys where I can pocket a few dollars for answering a short series of multiple-choice questions. This additional revenue stream adds significant value to my consulting practice, making it an attractive gig.

Cons of Consulting with Expert Networks

While there are many benefits to working with expert networks, no opportunity is without its downsides. A common complaint is the need to apply for projects, which often requires submitting 1-2 sentence responses to a few questions. The conversion rate is typically around 20-25%, meaning that for every enthusiastic project invitation, only one to two engagements result in actual work. In a busy year, I may receive almost an invitation a day but secure only one project a week. While this is a fair cost of doing business, it still represents a mild inconvenience.

A second major challenge is consistency. Projects tend to vary in their frequency, leading to periods of feast or famine. If my company or industry is 'hot' due to a recent IPO or merger, I can expect a barrage of work. However, a lack of client interest can result in long stretches of very quiet periods. In my best years, I earned nearly $10,000 from consulting calls, yet there have also been extensive periods where no revenue was generated. This inconsistency can be a challenge for financial planning and career stability.

Conclusion

In conclusion, consulting with expert networks offers a range of benefits, including recognition as an expert, financial rewards, and the convenience of flexible engagements. However, the need to apply for projects and the inconsistency in workload are significant considerations. Understanding and managing these aspects is crucial for effectively navigating a successful career within this niche consultancy sector.