When you do the math, subcontracting and direct sales cost your consulting business about the same – but there’s one other key difference.
I did a lot of subcontracting when I started out as a strategy consultant.
One larger consulting firm regularly brought me in to run primary market research for their strategy clients.
The pros?
The money was good.
I didn’t have to chase leads.
Work came to me.
But when my partner’s pipeline took a hit…
My utilization plummetted.
And that’s when it hit me: this wasn’t really my business.
I had no control over my pipeline. I was being placed, not chosen.
I regretted not building a direct and reliable sales plan sooner.
Now let’s talk numbers.
A consultant I know ran the math on subcontracting/getting placed via staffing agencies vs. direct selling. In both scenarios, the target revenue was $400k/year.
👉 Subcontracting path (70% utilization):
Target annual revenue: $400k
70% utilization → earned $280k → $120k in lost earning potential
15–25% platform/partner cut on $280k → $42k–$70k lost
Total cost: $162k–$190k
Effective income: $210k–$238k
👉 Direct sales path:
Target annual revenue: $400k
Time invested in strategy, marketing and sales (10–15 hrs/week for 1 year) → $100–150k
Marketing, tools, and coaching → $15k–25k
Total investment: $115k–175k
Effective income: $225k–285k
So no, the math doesn’t always clearly favor one over the other. Depending on your assumptions, it could go either way.
🌟 But here’s the thing:
Direct selling isn’t just about math – it’s about something bigger.
When you build your own pipeline:
You gain autonomy.
You build confidence.
You generate revenue on your own terms.
And that changes everything.
Because real freedom in consulting doesn’t come from ease.
It comes from control. With direct selling, you can grow your business without depending on third parties or middlemen. There will always be uncertainty in business, but it’s way less when you have control over your sales pipeline.
Subcontracting is like riding in the passenger seat.
Direct sales? That’s you with your hands on the wheel.
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P.S. – I write about my experience growing a B2B consulting business – and how you can do the same. Follow me for ideas on marketing, prospecting, selling consulting services, and building a thriving business.
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Ready to add $100k-$500k revenue to your consulting business in 12 months or less without burning out? Schedule a call and let me show you how.
Image credit: Dalle-3
