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Comment by jameslk | Hacker News Reader

I've had a few projects from them, one very large with a Bay Area client spanning a year. In the early days they would suggest a lower rate but now they change it to whatever I ask. I'm not sure what your rate is, but mine is competitive with Bay Area agency rates. Definitely better than Upwork (Elance) since I wouldn't be able to find the type of enterprisey clients I find on Toptal.

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When I was doing it they claimed that $65 per hour was a "good" rate for the Bay Area, and constantly pressured me to lower my rate to that. There were a few clients with names anyone here would recognize, but they were looking on Toptal specifically to get cheap labor for poorly specified work. Most of the clients were more like the stereotypical E-lance "small business" (read: one-person operation looking for cheap developers to build them the next Facebook for the equivalent of a $500 fixed fee).

I think they've definitely changed. I remember them low balling me on rate in the beginning. Also it depends on the recruiter you talk to. I'm definitely nowhere near $65/hr :)

> $65 per hour was a "good" rate for the Bay Area

I'm confused, I thought Toptal workers were remote. Why would your location factor into the rate a client is willing to pay?

FWIW I charged even less than that as a remote contractor and it goes really, really far in countries like Vietnam or Thailand.

My location wasn't the issue: I meant that Toptal was insisting companies located in the Bay Area would not want to pay more than about $65/hr (plus Toptal's surcharge). It was laughable, considering I was at that very moment working full-time at a company with a base salary with an hourly rate equivalent that was more than $65/hr, plus I got bonus, stock, and perks/benefits.

As far as I was concerned, Toptal wanted contractors who'd bill like the were competing with E-lancers for business, while Toptal was marketing them as "top talent. "You get what you pay for," and while you (for example) might be an exception, "top talent" isn't going to charge bargain-bin prices for their labor.

> "top talent" isn't going to charge bargain-bin prices for their labor

Purchasing power differences in the world are insane: $65/h in Vietnam can represent a much more luxurious life than $200/h in San Francisco.

In fact, the global top 1% starts at US$35k/year!

At $65/h ($130k/year) you'd be able to buy a home outright in about a year, send your kids to snooty private schools, hire a maid and a private driver, etc. in a large part of the world.

That doesn't mean much: a top-flight developer in Vietnam isn't going to underprice his or herself to that degree just because it costs a little less. If one can live that good on $65/hr, then $80 or $100 is that much better.

> $65 per hour was a "good" rate for the Bay Area

It's like $130k/year, I don't think you can even find an average engineer at this price

I'm curious what their percentage cut is.

Depends but it's been between 30-50%. They add that on top of the rate I request.

Thanks. It sounds really high for basically minimal risk and not even actively sourcing the clients, but I guess that's how these businesses work.

They do two things that make it worth it: if you set your status as available, you will actively be sold to potential clients, so you don't have to do any sales and they do all the payment collections, ensuring usually net 20 payment. This is especially helpful for the larger clients that usually take their time to pay.

For me, Toptal has been a good safety net, not necessarily where I go first to find new work. And the vetting process adds some credibility to my name.

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