On the surface, moving upscale and selling your services to Fortune 500-size companies seems like the quickest route to higher profitability.Here’s why that might seem to be true (and is true in some but not all cases):Bigger corporate clients will often pay for “insurance” on a project in the form of higher rates because they’re phenomenally risk-averse.Bigger corporate clients are more used to the idea of assembling a team of specialists and coordinating their efforts. Some of those specialists may be purely advisory (good for you, if you can qualify for the gig).Bigger corporate clients can be less price-sensitive. They’re simply used to seeing larger numbers. It’s not quite a conspiracy, but it sort of operates like one. Vendors know they can pay more, so they charge a premium. Buyers know that "nobody got fired for hiring IBM" and can spend as if they are hiring IBM.Bigger corporate clients often have a larger “buyer surface area”; a larger number of people who can make sizable discretionary spending decisions. This can make it easier to get to the money.Of course every one of these positive points has a downside as well. I'll touch on those in my next article.
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