How does the Catalant Fee work?
It’s free for experts to sign up and create a Catalant account. Catalant retains a fee only when a client engages an expert for a project. This fee (the “Catalant Fee”) ranges between 20 and 30 percent of the Total Professional Fee (equivalent to a 25 and 43 percent markup on the Expert Fee) and is determined by the contractual terms we’ve pre-negotiated with the client.
Experts should treat the Catalant Fee as a markup on their take-home and bid at their market rate for a project. While the Catalant Fee percentage is not open for negotiation on a given project, experts and clients are encouraged to communicate with each other to arrive at a scope and price that reflect both an expert’s market value as well as a client’s budget considerations.
The specific Catalant Fee is always available to experts on the project posting upfront and in the fee calculator provided when submitting a proposal (example below).
How do the recent changes to the Catalant Fee impact my bottom line?
The standardization of the Catalant Fee, coupled with increased fee transparency on our platform, is meant to enable experts and clients to more efficiently arrive at a market-clearing price that accounts for the service Catalant provides. As such, experts should not feel obliged to discount their bids based on a project’s Catalant Fee being, for example, 25% instead of 20%. Rather, we encourage all experts to always bid at their market price for a given scope of work. If the Total Professional Fees for a project end up above the high end of a client’s budget range, then the project work should try to be rescoped, rather than an expert having to pay a penalty.
How do the recent changes to the Catalant Fee apply to extensions and/or private projects?
For a given expert-client relationship, extensions or private projects originating within six months of the previous engagement's completion will use a constant Catalant Fee percentage, even if the client has other projects on the platform at a different fee percentage.
Can I negotiate the Catalant Fee for a project? Does the Catalant Fee scale over time based on an expert's success on the platform?
No, the exact Catalant Fee for a given project is pre-negotiated and set by the contractual terms between Catalant and the client.
Does the Catalant Fee differ for firms vs individual experts, or based on an expert's location?
No, all experts are subject to the same Catalant Fee on a given project. However, clients may incur different costs for compliance services, such as worker classification assessments, for engaging an individual expert vs for a firm, as the firm may be exempt from certain requirements. A client's compliance costs will similarly vary based on the expert location.
If you have further questions about the Catalant Fee, please feel free to contact firstname.lastname@example.org or the Catalant Team Member representative assigned to a given project.