I once had some contractors in my team that were paid $500/hour due to vendor markup. I consider that extravagant.
It varies though, the market also exists for $80/hour java developers, which tend to be new grads
Contract Developers going to technical companies will earn more like $180+.
i have been a contract developer, and have worked at technical companies in canada, and have never seen rates that are even close (and im not a jr / have never used java for work outside of small amounts for mobile.) there's no way these rates are as common as you are all making them out to be, unless it's some niche, or you're talking about extremely short contracts, or there's some other missing piece of context
These rates are at financial services , banks, transportation / logistics, manufacturing, telecom, etc. in Canada, US, and Japan.
You should read patio11's posts on this topic on HN or his website, for example : https://www.kalzumeus.com/2012/09/21/ramit-sethi-and-patrick...
There's reasonably good data about this that contradicts this?
$1000 as a day rate isn't unusual or unreasonable for a specialist IT contractor; and I don't say that idly; I say it from both experience and you know; aggregated data:
- https://www.hays.com.au/documents/276732/1102429/Hays+Techno...
- https://www.itcontracting.com/rate-checker/
- https://news.ycombinator.com/item?id=32606348
Yes, if you want someone to slap a php website together (or javascript, or many other entry level frameworks), you can pay less.
...but that's not what they were asking; they were asking for a technically sophisticated analysis of an existing project and a performant re-implementation in rust.
They got a bargain.
So if you hire an agency to perform a contract, they'll bill you $2000 per day and send you their employee who makes $100 an hour. Agency pockets the $1200 (it's a simplification, but should paint the picture).
Freelancer and agency both run the same business model. If you think like employee and charge extravagantly less, you will never grow.
You should typically charge enough, so that for any given project you could hire an employee to do the work, while you look for new leads or you can keep the money in the company and do the work yourself until you amass enough capital to move up the business ladder.