September 11, 2026

How do consultants manage to get over-the-budget funds covered by the client?

A YouTube viewer asked:

Hi Jonathan!

I could never understand, how consultants manage to get over-the-budget funds covered by the client?

Where would one even get such a client, that would agree to pay 2x-3x-Nx of the estimate?

In my experience, if I go over the estimated 100 hours - they either: demand that I finish the project w\o any additional pay; or: just fold the project and demand the money back.

Maybe I’m just unlucky....

Cheers!

This question is predicated on the notion that giving an estimate to a client is something that I would do.

It is not something I would do.

I don’t think I’ve ever given an estimate to a client in 20 years of being in business for myself.

What do I do instead?

I give clients a PRICE.

I price that I stand behind.

If the project ends up taking more time than I expected, my profits go down.

If the project ends up taking less time than I expected, my profits go up.

And guess what?

This creates a powerful financial incentive for me to get really good at delivering the client’s desired outcome as fast as possible.

Which makes both of us (i.e., me and the client) more money.

Win-win.

Yours,

—J

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