I ran into this problem.. I felt like I was worth more than the best offers I was getting. I continued to get job offers, but I couldn't get one for more than 100k remotely or in my area(Burlington, VT).
I've got many many years experience, can solve any challenge, and work at twice the rate of most of the developers I have worked w/ in the tech stacks I focus on(ruby, elixir, reactjs/javascript/ember/angular etc)..
So I decided to go at it on my own and charge a rate I felt I was worth. Best career decision I've made so far. I think every developer reaches a point where the only way they can make more is to move into management and stop being a developer, or branch out on their own. I myself hate being a manager and love being a developer.
Managers generally seem to think that a developer is a developer is a developer. When there is a clear difference between a $50/hr developer and someone who can charge $250/hr in the time it takes to solve the same problem. What takes a $250/hr dev 1hr to solve correctly, might take a jr dev 5hrs to just "get it working."
>So I decided to go at it on my own and charge a rate I felt I was worth. Best career decision I've made so far.
I think this, above all else, is the key to the frustration and ever decreasing salaries we're seeing. The market has spoken: employees just aren't worth that much. If you want to capture more of the value you create you'll need to go into business for yourself. It's risky, but sitting a desk in a huge office watching rates go down and down will probably turn out to be more risky in the end if you can't retire before it gets too bad.
Having said all that, would you mind expanding on exactly what you did?
I started by talking to my friends and networking with people who needed developers, using online sites to find people hiring or seeking developers I could pitch on my services(this works amazingly well), and doing content marketing to get some SEO and exposure for myself and services. I started with a rate that was a little more than my salary when I left to cover things like savings, retirements, insurance, taxes etc that my job paid and raised my rates any time I had to much work to do. See my other response in the thread for more details.
I started w/ word of mouth and networking through people I already knew. I also started with a lower rate. I raised my rates anytime I had to much work to do. I discovered this technique from another friend.
I was complaining one day about having WAY to many clients. He said and I'll never forget it, "if you have to much work to do, you're not charging enough."
I started 2.5 years ago at $70/hr and am now at $135/hr after several rounds of raising rates. Sometimes I would lose a client when raising my rates, but that was ok and really was the goal. They were usually the most painful to deal w/ anyway. My best clients usually never even balked at it. Just said ok and kept on paying.
I then got to the point where I needed to give myself a brand and bring on another developer because I started taking on very large green field projects(this was something my lawyer and accountants suggested for insurance/legal/protection reasons).
At that point I got more advanced and started doing some content marketing, facebook ads, and google ads to keep the pipeline running. The hardest part was keeping clients lined up in the beginning. Because I would get a client, work the client and during that time stop looking for new clients. Which lead to a lot of down cycles with no work to be done while I looked for the next client. This is still an ongoing thing we're working on at this time to improve our client acquisition techniques.
My partner and I now do about 20-30hrs a week for clients pretty steady and spend the rest of the time working on projects we own fully that we hope can generate recurring revenue. It has been a really fantastic journey that I hope never ends.
Every day get really inspired by the stories on indiehackers.com and just find this way of work extremely fascinating. Very rewarding both personally and financially so far and I don't think I'll ever stop doing what I'm doing if I have anything to say about it.
I've got many many years experience, can solve any challenge, and work at twice the rate of most of the developers I have worked w/ in the tech stacks I focus on(ruby, elixir, reactjs/javascript/ember/angular etc)..
So I decided to go at it on my own and charge a rate I felt I was worth. Best career decision I've made so far. I think every developer reaches a point where the only way they can make more is to move into management and stop being a developer, or branch out on their own. I myself hate being a manager and love being a developer.
Managers generally seem to think that a developer is a developer is a developer. When there is a clear difference between a $50/hr developer and someone who can charge $250/hr in the time it takes to solve the same problem. What takes a $250/hr dev 1hr to solve correctly, might take a jr dev 5hrs to just "get it working."