This is a recipe for disaster. I have been full-time freelance for the last 4 years, and scaling into a full-service consultancy with all the accoutrements (like an office for my employees), and I can tell you that $100/hr is really a bare minimum for meaningful profit margins on developers. I have a few contracts under that (for various reasons), and with the new hires I'm contemplating, I am going to have to raise their rates or drop off and replace them with better paying clients.
As a freelancer, you might be able to get away with $70-$80/hr minimum, but $100 minimum still is easily within a reasonable price range.
I would expect a fair market rate for great developers to be something more like $150-$200/hr. Unfortunately, I have a hard enough time getting clients around here at $100, but in order to really have the business firing on all cylinders, I would need to be charging $150+ for each developer hour.
The margins at $100 and below are barely enough to make payroll; there is almost nothing left to pay for things like significant marketing or PR, investment in equipment or facilities, loose time to spend on internal projects or internal maintenance, etc.
As a freelancer, you might be able to get away with $70-$80/hr minimum, but $100 minimum still is easily within a reasonable price range.
I would expect a fair market rate for great developers to be something more like $150-$200/hr. Unfortunately, I have a hard enough time getting clients around here at $100, but in order to really have the business firing on all cylinders, I would need to be charging $150+ for each developer hour.
The margins at $100 and below are barely enough to make payroll; there is almost nothing left to pay for things like significant marketing or PR, investment in equipment or facilities, loose time to spend on internal projects or internal maintenance, etc.