You've made the leap from a prestigious consulting firm to independence - congratulations. The structure, resources, and brand name are behind you, and now you face a critical question that many ex-MBB consultants struggle with: what should you charge? Converting your former salary into an hourly rate misses the mark completely. As an ex-McKinsey, Bain, or BCG consultant, you offer far more than time - your true value lies in delivering clarity, speed, and transformative impact. This requires a mental shift, and we're here to walk you through it.
Forget salary benchmarks - you're in a different game now
Still thinking about converting your £180K salary into an hourly rate? Most ex-consultants make this fundamental error. Such an approach completely overlooks the unique value you provide as an independent.
Consider what clients actually pay for. They invest in outcomes and clarity that their internal teams might need weeks to achieve - if they manage it at all. That clever framework you sketched out in two hours? For them, it eliminates three weeks of internal debates and false starts.
Many ex-consultants initially benchmark their rates against their previous salaries when first going independent. The realization typically comes months later - sometimes even a year, that independent consulting allows you to deliver the same strategic thinking in a more focused format without the firm's substantial overhead.
You've progressed beyond junior status, so why price yourself as if you still need to prove your worth? When solving C-level problems and delivering partner-level insights, your rates should properly reflect this elevated capability.
The brand halo only gets you in the door
That prestigious firm on your CV? It certainly turns heads. Your MBB experience signals quality, rigour, and elite training. But don't be fooled - this credential alone won't close deals or justify premium rates.
What actually convinces clients to pay top rates is how you connect your past experience to their current challenges. When you can say, "I helped a Southeast Asian telecommunications company reduce churn by 12% - and I can help you structure a similar retention strategy in half the time," you've moved from credential-dropping to value-promising.
Successful ex-MBB independents position themselves as focused specialists rather than generalists. They don't try to replicate their old firm's pace and approach either. Remember why you left? Independent consulting gives you the freedom to design an operating model that better serves both you and your clients.
Build your rate around your ideal week
Have you encountered freelancers who claim to bill 40 hours weekly or 20+ days monthly? This represents fantasy rather than reality. New independents frequently make the critical mistake of basing their rates on unsustainable utilisation targets.
The calculation often overlooks essential time commitments: business development, proposal writing, administrative tasks, and the vital thinking time between client sessions. Then there are the inevitable gaps between projects to consider.
A more realistic formula works better: Target annual income ÷ (realistic billable days/year) = your baseline day rate
Even seasoned consultants find the results surprising. If you're aiming for £140,000 annually with 100 truly billable days, your day rate must reach £1,400 - before accounting for taxes and expenses. Suddenly, those "expensive" independent consultants seem reasonably priced.
Align your rates with your energy capacity and quality standards rather than your former firm's expectations. The true measure of your value comes from focused expertise and clarity of thought, not from maximising billable hours.
How to negotiate without cringing
Feel that knot in your stomach when discussing fees? After years of having the firm handle pricing conversations, negotiating directly with clients can feel awkward. But you've got this - just apply your consulting toolkit to this challenge.
Frame your rates around value delivered, not hours spent. Try saying: "This investment ensures you get my full attention and best thinking, without me splitting focus across multiple clients simultaneously."
Never apologise for charging what you're worth. Instead of sounding defensive, confidently explain: "This is the rate at which I know I can deliver my best strategic support for your situation."
When clients push back (and they will), resist the immediate discount reflex. Instead, be flexible in structure while protecting your value. Offer phased approaches, design smaller initial scopes with clear expansion paths, or suggest retainer arrangements for ongoing advisory work.
Remember how you helped clients navigate tough negotiations? Now you're negotiating for yourself, using the same strategic thinking and value articulation skills.
Pricing models that actually work for ex-MBBs
Not all consulting work fits the same pricing structure. Smart independents adapt their approach based on the engagement type:
- Day or half-day rates work brilliantly for advisory sessions, workshops, and short strategic sprints. Just make sure to set a minimum engagement (typically 2-3 days) to avoid the fragmentation trap
- Project-based pricing shines when outcomes are clearly defined. The secret? Meticulously define scope upfront to prevent the dreaded "could you just add this one thing" requests that silently erode your margins
- Retainers provide stability for ongoing relationships where you serve as a fractional strategist or regular advisor. They create predictable income while allowing you to develop deeper understanding of the client's context
- Success fees can supplement base rates for projects with measurable outcomes. They signal your confidence while potentially increasing your upside significantly
Here's a tip from successful independents: establish a "silent floor" rate - a minimum beneath which you simply won't go, regardless of how fascinating the project sounds. This mental boundary saves you from taking work that ultimately devalues your offering and drains your energy.
Your real rate is higher than you think
Do your rates seem steep? They likely remain too low. Most new independents overlook crucial realities when calculating their charges:
Non-billable work consumes at least 20-30% of your professional time. Client proposals, networking coffees, and continuing education never appear on an invoice.
You now bear costs formerly covered by your firm: software subscriptions, professional insurance, skill development, marketing expenses, and even replacement of that high-end laptop. These costs accumulate rapidly.
Beyond expertise, you provide certainty, credibility, and clarity in complex situations. This peace of mind carries substantial value for clients.
Many ex-consultants initially set rates that feel 'reasonable' compared to their previous salaries. After six months, they often discover they're earning less than half their former compensation while maintaining similar workloads. Some must increase rates by 50-70% simply to achieve viable economics. Surprisingly, clients rarely object to these adjustments when presented with clear value propositions.
The mindset shift: from consultant to business owner
Setting rates still presents a challenge? The core issue isn't mathematical but psychological. Success requires a fundamental mental transition from functioning as a resource within a larger organization to becoming the entire value proposition yourself.
Consider your new position: no longer billing hours to support a massive overhead structure, you now deliver concentrated expertise directly to clients with specific needs for your capabilities. This necessitates an entirely different approach to positioning, packaging and pricing your services.
When you establish appropriate pricing, you demonstrate more than your training credentials. Your rates embody your autonomy, clarity and worth as a strategic partner who delivers value far exceeding your cost.
Good luck out there!
Not sure if your rates are on target? Try our rate calculator or join our community of ex-MBB independents today.
