Barry van Someren - Good Business Advice From The IRS?

Jan 28, 2025

Barry van Someren, an ex-Java developer and founder of CoffeeSprout, discusses his shift from hourly work to value-based services. He shares insights on recent tax law changes in the Netherlands that affect independent contractors, emphasizing the importance of multiple clients for business stability. Barry reveals how defining clear outcomes in contracts can enhance client relationships and reduce vulnerability. He highlights the necessity of adapting to evolving regulations and explores innovative pricing models for resilience in the gig economy.

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ANECDOTE

Barry's Transition from Hourly

Barry transitioned from hourly work mainly with one client to more predictable, value-based services.
He focused on monthly fees with automation to reduce hours required per client while ensuring results.

INSIGHT

Dutch Law on Employee Classification

New Dutch tax laws set criteria to classify if a contractor is actually an employee.
Key factors include whether the client tells you how to do your job and if you take business risk.

ADVICE

Use Results-Based Contracts

Define specific results in contracts instead of billing hourly to avoid being misclassified as an employee.
Agree with clients upfront on outcomes to provide clearer value and reduce legal risks.

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Ex-java developer and CoffeeSprout founder Barry van Someren joined me on Ditching Hourly to talk about the surprising alignment between “Ditcherville ethos” and the government of the Netherlands.

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AI SUMMARY

In this episode of Ditching Hourly, Jonathan Stark speaks with Barry Van Someren about his transition from hourly work to value-based services, the implications of new tax laws in the Netherlands for independent contractors, and the importance of having multiple clients. They discuss how these changes affect client relationships and the necessity of shifting to results-based contracts. Barry shares insights on navigating the complexities of government regulations and the benefits of diversifying client portfolios to ensure business resilience.

SOUND BITES

“I wanted to transition into something that was more predictable.”
“It’s just refreshing to see that kind of advice from the IRS.”
“I kind of wanted to make myself less vulnerable to this law.”
“The IRS and various countries are giving you that encouragement.”
“If you stay at one place too long, you become stagnant.”
“Hourly billing is bad.”

TAKEAWAYS

Transitioning from hourly work to value-based services can lead to more predictable income.
New tax laws classify independent contractors more strictly, impacting their work.
It’s essential to define clear results in contracts rather than relying on hourly billing.
Having multiple clients reduces vulnerability to market changes and legal issues.
Government regulations can align with good business practices, encouraging consultants to diversify their client base.
Freelancers should be aware of the risks associated with being classified as employees under new laws.
Building a strong network is crucial for finding clients and maintaining a steady workflow.
Consultants should focus on delivering results rather than just completing tasks.
The importance of compliance with tax laws cannot be overstated for independent contractors.
Hourly billing is often seen as a less favorable model for sustainable business growth.

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Before you go!

The next time someone asks you for your hourly rate, I want you to stop what you're doing and head on over to valuepricingbootcamp.com to sign up for my free value pricing email course.

Hope to see you there!