Everything I Learned from AI Consulting¶

As I've shared insights on building a consulting practice, marketing strategies, and referral techniques, I've realized there's so much more to discuss about the world of AI consulting. This post aims to consolidate everything I've learned, building upon the foundation laid in my previous articles. Whether you're just starting out or looking to refine your approach, this comprehensive guide will provide valuable insights into the consulting process, from positioning yourself as an expert to closing high-value deals. For those interested in the tools that support my consulting work, don't forget to check out my article on the consulting stack I use.

These insights are drawn from my extensive experience, including a livestream I conducted on the topic. If you're interested in the original discussion, you can find the YouTube live stream here.

I've been reviewing a lot of consulting proposals lately, and I keep seeing the same mistakes I made when I first started. So many people think they're consultants, but they're really just contractors. The difference? Contractors sell tasks. Consultants sell outcomes.

Here's the thing: if you're just selling your time, you're limiting yourself. Sure, you can go from $90/hour to $100/hour to $200/hour. But once you hit $500/hour, you start to feel like a grifter. And there's a hard ceiling on how much you can make because there are only so many hours in a year.

The key is to shift your mindset from "here's what I'll do" to "here's what you'll get." Let me break down how to make this transition and start charging what you're really worth.

Stop Selling Tasks, Start Selling Outcomes¶

Most people's consulting pitches sound like a resume:

"Hi, I'm Jason. I build AI apps. I do X, Y, and Z."

The problem? Nobody wakes up thinking "I need a consultant." They wake up thinking "I have a problem." Your job is to show them you understand their problem and can solve it.

Instead, try this:

"If you're losing customers because your app is hallucinating, or if your engineering team is wasting time debating what to build next, I can help."

See the difference? Now you're speaking their language. You're addressing their pain points.

Create a Content Flywheel¶

Once you understand your potential clients' pain points, start creating content that demonstrates your expertise. Write blog posts, create videos, build open-source tools - anything that shows you can solve their problems.

For example, when I noticed companies struggling to upskill their engineering teams for AI, I wrote articles on:

• Common mistakes in transitioning to AI engineering
• How to evaluate RAG systems effectively
• Strategies for attracting top AI talent
• Understanding data literacy in AI

This content serves two purposes:

1. It positions you as an expert
2. It gives you material to share during sales conversations

Ask the Right Questions¶

When you get on a call with a potential client, don't just ask what they want you to do. Dig deeper with questions like:

• What's at stake in your business right now?
• What do you look for in a partnership?
• How can I make you look good?
• What does success look like for this project?

These questions help you understand the real value you can provide - and price accordingly.

Structure Your Proposals for Success¶

Your ability to command a high income is going to be directly proportional to how accountable and responsible you are for driving the final business outcome.

Here's where the magic happens. Instead of one price option, give them three:

1. The basics (what they asked for)
2. Enhanced value (demonstrate you understand their deeper needs)
3. Full accountability (show you're willing to own the outcome)

For example:

1. Basic: Build an eval system ($20,000)
2. Enhanced: Build eval system + weekly progress reports + team training ($30,000)
3. Full Accountability: Everything above + I don't get paid until you see a 10% increase in customer retention ($50,000 upon success)

This approach does a few things:

• Gives the client options (people like choices)
• Demonstrates the value you can provide beyond the basic ask
• Allows you to capture more value if the client sees your expertise, LET THEM PAY YOU MORE

Divorce Your Pricing from Time¶

The key to breaking through income ceilings is to stop thinking in terms of hourly rates. Instead, think about the value you're providing.

If you're helping a company raise their Series A, and that's worth $10 million to them, suddenly $200,000 for your services doesn't seem so crazy. It's all about framing. But then you have to make sure you can deliver.

The Limits of Service Businesses¶

Now, I'll be honest - there are limits to how far you can scale a pure services business. It's hard to imagine making $5 million a year just from your own consulting. That's why many consultants eventually transition into products:

• Courses
• Books
• SaaS tools

These allow you to leverage your expertise without trading time for money directly.

Wrapping Up¶

The journey from contractor to consultant isn't just about charging more. It's about fundamentally changing how you think about the value you provide. When you focus on outcomes rather than tasks, you unlock a whole new level of pricing power.

Remember:

1. Understand your clients' pain points
2. Create content that demonstrates your expertise
3. Ask the right questions to uncover true value
4. Structure proposals with multiple options
5. Price based on value, not time

Make these shifts, and you'll find yourself not just making more money, but delivering far more value to your clients. Theres a price where both of you are able to say thank you and celebrate.$$

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