GLG typically charges its clients over $1,000 per hour for facilitating expert consultations. This rate reflects their significant markup for connecting clients with specialized knowledge.
GLG's Client Billing Structure
GLG operates on a model that involves a substantial markup on the rates paid to its network of experts. This business approach allows them to achieve high contribution margins, often reaching up to 70%. When a client engages GLG for a consultation, the hourly rate they pay to GLG is considerably higher than what the individual expert receives.
Understanding the Markup
The difference between the expert's consulting rate and GLG's charge to the client highlights their value proposition in providing quick access to niche expertise. For instance, an expert might be compensated at a rate of approximately $300 per hour for their time and insights. However, GLG, as the facilitator, then charges its clients a significantly higher fee for coordinating and providing access to that expert's knowledge.
Example Hourly Rates
To illustrate the pricing structure, consider the following breakdown of an typical consultation:
| Party | Role | Example Hourly Rate |
|---|---|---|
| Expert Consultant | Provides insights directly | ~$300 |
| GLG (to Client) | Facilitates access to expert | $1,000+ |
This example demonstrates how GLG's service includes the curation of experts, scheduling, and ensuring the seamless delivery of specialized knowledge to clients, justifying their higher charge.
