Increasing Nature of Risk
As the consulting models increase, so does the risk associated with them. In all models other than I or II, any change in an income or expense area related to consulting represents a risk for the consultants.
It is difficult to quantify risks. Maybe the easiest way is to recognize that consulting beyond the first two models is on an hourly basis with no guarantees. The consultant may work 12 months, 6 months, 3 months or not at all in a given year. Consulting fees are market based. As more people enter the consulting profession, hourly rates can go down. In other words, a consultant cannot necessarily expect their hourly rates to increase throughout their careers. In my case, my rates were actually higher in the first few years that I worked as a consultant than they are now.
If you do not have the personality and financial strength to deal with this increased risk, consulting may not be a good career for you