Professors, and even graduate students and postdocs, are frequently invited to serve as consultants, workshop presenters, or to provide other services to organizations and industry. My experience is that most professors are extremely poor at negotiating fees, expenses, and the scope of the services to be provided. Consultation and speaking can lead to immediate reinforcement in a job that typically requires epic delay of gratification. In addition, consultation can be lucrative, assist in creating and expanding a personal/professional brand, and provide the introduction to a host of important partnerships.
The first rule of consultation as an academic is to understand completely the formal requirements of your employment contract at your university and the informal culture of your department and university. For example, my contract allows an equivalent of one day per week to engage in consultation outside of typical university duties. As I am in a department of educational and counselling psychology, some of my colleagues use this one day per week to engage in independent practice as a psychologist, work with school boards, or engage in statistical and research design consultation for program evaluation. Exterior consultation is not an expectation, but is widely accepted. Some universities or units within universities may not allow external consultation at all. Others strongly encourage or require partnerships with business and industry because external consultation is considered to be a core component of the role and function of the professor. Evaluating the formal and informal expectations for external consultation is a necessity. Discuss this with your faculty mentor or department chair before pursuing any such activities.
A rule that I tend to follow is that I do not do anything unless it is fun, makes money, or is important for my career. The only real exception I have to this rule is that occasionally I will do some work as a favour to a friend. Knowing who you are working with and the general working environment and culture of the system with which you are consulting are important. Some systems are chaotic, rife with political discord, and without direction. They are hoping that by engaging a university professor as a consultant that they will gain some clarity or have a scapegoat for their inevitable failures. These situations are far from fun. They may earn money for you, but will be bad for your career and professional well being. Say, no frequently. It is better not to consult than to get involved in a quagmire of time, energy, and soul sucking activity. For me, the default answer is no unless I am confident that my efforts will be productive and rewarded.
The best advice that I ever received was from my postdoctoral supervisor, who said, “Never do anything cheaply. Do it for free or for an incredibly large amount of money.” Many young and even experienced professors dramatically underestimate the value of their time and expertise. Your consultation services are not like Walmart, where systems are looking for the cheapest possible deal. What is true is that more people will be interested in your services when your fees are higher. This may be counterintuitive in retail, but well-known in consultation. When you require a lot of money to engage your services, you are saying that your services are valuable. This is not simply for ego, but for the power to make systemic change. Your advice, workshops, or report will have much more impact on the system if they believe that the service you are providing is valuable. The amount of money that is paid for that service is an important variable for the perception of the worth of your service. Occasionally, a system wishes to engage my services, but has very little money. In these cases, I determine whether this system is a good one to work with, can help my career or brand, and will be fun. If so, then I will engage in such consultation for free or for expenses only. The goodwill generated by doing pro bono work is often worth just as much as the money. You never want to be known is doing something for cheap, but it is perfectly acceptable to donate your services to a worthy system.
Never be afraid to ask for exactly what you want. Many academics are extremely uncomfortable talking about money. By asking for what you want you are not seen as arrogant or greedy, but as a professional. Academics are well known in business as being inefficient with time management, unable to make hard decisions, and without knowledge concerning real world application of research. Strong negotiation performance will address this stereotype. Be prepared to put into writing exactly what the financial compensation and what goods and services and time will be required. When money is to be paid for your service, prepare a formal invoice (there are many forms for invoices available online). Write everything. This is professional show business. Academics tend to be extraordinarily trusting people when it comes to business and money. There are reasons why businesses employ lawyers. Trusting people with a handshake or with their word is an unwise business practice. Everything in writing!
I am sure people want exact numbers. As a psychologist and educator who works mostly with school districts and professional organizations there may be different financial expectations than for people who consult with business or industry. My fees are $450 per hour of work plus expenses. I will negotiate. Expenses include air travel, ground travel, lodging, meals, copying, postage, and other necessary components. Equally important is to have hard numbers on how many hours and which dates that you are expected to work. Plan this carefully or your seemingly lucrative contract will become a black hole for your time and energy. I am typically asked to do four-hour or eight-hour workshops for professional development activities. I tend to be pretty good at these and have much experience. However, I request $450 per hour of actual speaking time. Obviously, a lot of preparation goes into these workshops, but I only charge for the time that I am actually providing direct service. Always let the system know if you are going to charge them for your preparation time. And let your university know when you will be out of town or otherwise unavailable.
Do not do too much. Most of my friends and colleagues avoid consultation and conducting workshops. They are uncomfortable talking about money and prefer to avoid these activities. However, I also know people who do way too much consultation and speaking. There is a fine line between defining your academic brand as that of a public intellectual and simply being a huckster. I know quite a few people who more than double their academic salary with 40 to 50 speaking engagements per year. They are often charismatic speakers with well-made suits, spray tans, and well-rehearsed multimedia infotainment shows. This is an amazing and impressive skill set. Their talks are replete with ever-changing buzzwords (e.g., mindfulness, grit, everything prefaced with neuro-). Yet, it is rare that these speakers are respected as scholars. There is no question that I am just a little bit jealous of their impressive skills and healthy bank accounts. Doing too much consultation or speaking will damage your brand. For me, being considered by my peers to be a dilettante and purveyor of BS in my field is not something to which I aspire.
I am not paid exceptionally well in my academic job, but I do not need to consult or speak frequently. Due to family issues, I have been politely declining all requests that involve travel for a while. Consultation and travelling to speak weigh heavily in work-life balance. As an academic, when you find work life balance tilting in the wrong direction, one of the best places to cut back on is consultation and speaking if you have any options in this matter.
Consultation and speaking engagements provide an excellent opportunity to mobilize and transfer knowledge and to deliver your scholarship to a wide audience. However, this is a business. Clarity, sense of purpose, professionalism, and complete understanding of what you are trying to achieve as an academic are important to the effective delivery of consultation and public speaking.