Breaking Down the Cost: What Influences the Rate for an Instructional Design Consultant?

Breaking Down the Cost What Influences the Rate for an Instructional Design Consultant By Leigh Anne Lankford

Hiring an instructional design consultant is a smart choice for organizations looking to create effective, engaging training programs. But understanding the cost behind their services can be tricky. Rates vary widely depending on several factors, and knowing what impacts those costs can help you budget more effectively and find the right fit for your needs. Here’s a breakdown of the key elements that go into the cost of an instructional design consultant.

1. Virtual vs. Onsite or Hybrid Work

One of the biggest factors in determining cost is whether the work will be done virtually, onsite, or as a hybrid of the two. Virtual instructional design consultants typically come at a lower cost because they can work from wherever they are located. For instance, rates in some states and more rural areas are much lower than those in busier cities such as Chicago, New York, or Atlanta.

In contrast, onsite consultants or hybrid arrangements (a mix of onsite and virtual work) can be more expensive due to several factors. These roles often require finding someone local to the office or willing to commute regularly, which limits the pool of available talent and can easily increase costs. In some larger cities, adding a commute can add two to three hours of time away from home and family each day, not to mention the cost of fuel and wear and tear on their car. Additionally, many instructional design contractors charge higher rates for the inconvenience of leaving their dedicated home office spaces—a standard setup by most consultants today, as remote work has become the norm. The need for onsite presence often makes these roles less appealing, leading to higher compensation expectations.

In addition, when you need a consultant located close to a specific office, you are vastly limiting your choices of consultants. You might be limiting your choices to just a handful of consultants with the right skill which allows the consultant to negotiate for a much higher rate. When you are open to consultants from anywhere in the US, you are enlarging the number of choices allowing your relationship manager to find the best possible consultant at the best possible price.

At TrainingPros, our relationship managers will talk through these options with you to determine the best solution for you and find you the best rate.

2. Specialized Skills Beyond Instructional Design

Not all instructional design projects are the same. Some require skills beyond traditional instructional design, which can drive up costs. For example, you might need someone with expertise in learning analytics, business acumen, or business-to-business sales enablement. These specialized skills are acquired through many years of focused work in a specific area, often for the purpose of garnering higher pay rates.

The more specialized the skills, the fewer consultants there are with the necessary qualifications, which often leads to higher rates. Work with your TrainingPros Relationship Manager to assess whether these specialized skills are truly necessary for your project, as this can have a significant impact on your budget.

3. Industry-Specific Experience

Does your project require expertise in a high-cost industry like pharmaceuticals, finance, or aerospace? Consultants with experience in these fields often command higher rates because they bring knowledge of complex regulations, jargon, and industry standards.

For example, in the pharmaceutical industry, understanding FDA compliance for training materials is a highly sought-after skill. Similarly, industries like finance often require instructional designers to work with sensitive data, adding another layer of complexity (and cost) to the role. Industries such as healthcare require instructional designers with an understanding of what has to be phrased exactly as provided and when to ask for clarification on phrasing.

Your Relationship Manager can work with you to determine how much specialized industry experience is needed in your consultants to help you get the best rate possible.

4. Specialized Certifications

There are many specialized certifications within learning and development and outside it. For instance, if a company specifies that the instructional design consultant they choose must hold their CPTD certification, it can increase the price by reducing the pool of candidates. Outside learning and development, the types of specialized certifications that may be requested are nearly unlimited. For example, your industry might require someone with a level of government clearance. This will greatly increase the rate for the consultant as these consultants are a very small subset and engaged nearly full-time.

Work with your TrainingPros Relationship Manager to make sure any requested certifications are absolutely necessary rather than a nice-to-have to keep your consultant rate as low as possible.

5. Experience with Specific Non-L&D Software

Sometimes, projects require instructional designers to work with software that isn’t typically used in learning and development. For example, you might need someone who can design training for a specific SAP or Oracle module.

Finding consultants who have both instructional design expertise and hands-on experience with these niche platforms can be challenging. This combination of skills is rare, which can increase rates. If your project involves unique tools, it’s worth identifying consultants with the right technical background early to avoid delays.

At TrainingPros, our Relationship Managers have been working with clients that need this specialized software experiences for nearly three decades. We can help you find these specialized instructional design consultants.

6. Full-Time vs. Part-Time Commitment

The time commitment required for your project also plays a big role in determining costs. Consultants working full-time on long-term projects often provide more flexibility in rate negotiation compared to part-time, short-term roles.

For example, an instructional design consultant working on a year-long project may offer a discounted hourly or daily rate because of the steady income and guaranteed work. On the other hand, if you only need someone for a few hours a week or for a short project, the consultant will be more limited on finding other work to fill in their time, causing them to ask for a higher rate. In addition, if the project is short, the consultant will quickly face a period of time without income and therefore will ask for a higher rate.

Your TrainingPros Relationship Manager has built a network of part-time consultants that welcome the part-time work to help you offset this increase in price.

7. Travel and Living Costs for Onsite Work

If your project requires an instructional design consultant to travel and work on location, be prepared for additional costs. Travel and living expenses, such as flights, accommodations, meals, and transportation, are usually covered by the hiring organization.

These arrangements are typically reserved for full-time, long-term projects because they involve a significant investment on both sides. If your project requires onsite work, it’s important to plan for these costs in your budget and ensure that the consultant is available for the duration of the project.

8. Markup from the Staffing Agency

Another factor influencing the cost of an instructional design consultant is the markup charged by staffing agencies. Agencies with high overhead costs such as large sales teams, large offices, and big administration teams often pass these expenses on to their clients through higher billing rates. I’ve heard from some clients that agencies sometimes double the consultants pay rate to bill the client! Or agencies offset their high overhead costs by offering lower pay rates for the consultant. In addition, some agencies add on a one-time “finder’s fee” beyond the hourly cost of the instructional designer for the time and effort used to find the consultant.

At TrainingPros, we operate as a virtual company, which allows us to keep overhead costs low. We also don’t use an expensive sales team, instead depending on our great service levels and our reputation to grow our business through referrals. This unique approach ensures that we can pay consultants competitive rates while maintaining reasonable prices for our clients. By prioritizing service, quality, and efficiency, we deliver exceptional value without compromising quality, creating a win-win for both consultants and companies.

9. W2 or 1099?

The payment model also plays a significant role in determining cost. When a consultant is employed as a W2 worker, the company typically incurs additional expenses such as payroll taxes, payroll or benefits administration, unemployment insurance, paid time off, and compliance costs. These expenses often result in a higher rate charged to the company, while the consultant receives a reduced pay rate due to these additional costs.

In contrast, hiring consultants as 1099 contractors is generally less expensive to administer, with fewer associated costs. Many consultants prefer the 1099 model for its flexibility and potential for higher pay rates. This model works well for consultants who work on shorter projects or balance multiple clients.

We are not offering advice on which model is the right model for your company, we are just explaining how they affect cost. By understanding the implications of each payment model, you can make an informed decision that aligns with your project’s budget and administrative capacity.

10. Are the Resources from Overseas?

Some staffing agencies cut costs by sourcing instructional design consultants from countries like India or the Philippines. While this approach may seem economically prudent initially, it comes with potential downsides that can affect the success of your project.

For instance, time zone differences can lead to full-day delays in communication and greatly affect project delivery. Cultural differences may also result in training materials that don’t resonate well with a U.S. audience, reducing engagement and effectiveness. Additionally, language barriers can complicate collaboration and the clarity of deliverables.

When quality and cultural alignment are critical, sourcing locally or working with consultants who understand the U.S. market is often a better long-term investment. At TrainingPros, we don’t seek overseas consultants unless it is specifically requested by the client. We focus on matching clients with experienced consultants who align with their project needs and cultural expectations to ensure seamless results.

Balancing Cost and Value

While it’s tempting to focus on the lowest possible rate, the cheapest option isn’t always the best value. A consultant with the specific experience you need may complete a project faster and with better results, ultimately saving you time and money.

By understanding the factors that go into the cost of an instructional design consultant, you can make informed decisions that balance your project’s needs with your budget. Whether your project requires a virtual consultant with general skills or an onsite expert with specialized knowledge, having a clear picture of what drives costs will help you find the right fit.

Final Thoughts

Hiring an instructional design consultant is an investment in the success of your learning and development initiative. Virtual or onsite work, specialized skills, industry expertise, software familiarity, time commitment, and travel requirements are just a sample of the decisions that play a role in determining cost.

Download your copy of: 10 Interview Questions to Ask an Instructional Design Consultant

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Does your learning and development department have more projects than people? TrainingPros has been named as a Top 20 Staffing Company internationally by Training Industry. Coupling this award with being voted as a top Custom Content Development company internationally by our consultants for five years in a row underscores TrainingPros’ unwavering commitment to delivering high-quality, tailored training solutions. If you need a single instructional designer or a team to take over a custom content development project, contact one of our industry-expert relationship managers today. When you have more projects than people™, let us find the consultant to start your project with confidence. Schedule a consultation today.

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Leighanne Lankford

With more than 30 years of experience in Learning and Development, I bring a wealth of expertise to every project. My career has spanned roles from instructional designer to learning leader, equipping me with a deep understanding of the industry. Holding an MS in Human Resource Development, I’ve been recognized with multiple industry awards for my contributions as a practitioner. Under my leadership, my company has won dozens of L&D industry awards, reflecting our commitment to excellence. Since 2007, I’ve been passionate about connecting consultants with impactful projects at TrainingPros, ensuring both clients and consultants thrive. Connect with me to explore insights that elevate your L&D strategies.
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With more than 30 years of experience in Learning and Development, I bring a wealth of expertise to every project. My career has spanned roles from instructional designer to learning leader, equipping me with a deep understanding of the industry. Holding an MS in Human Resource Development, I’ve been recognized with multiple industry awards for my contributions as a practitioner. Under my leadership, my company has won dozens of L&D industry awards, reflecting our commitment to excellence. Since 2007, I’ve been passionate about connecting consultants with impactful projects at TrainingPros, ensuring both clients and consultants thrive. Connect with me to explore insights that elevate your L&D strategies.

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