Great conversation going on on the New York Tech Meetup (NYTM) mailing list regarding building tech teams and hiring/contracting developers and CTOs; I feel obligated to quote Jonathan Vanasco, acting CTO of an IAC property:
Having an 'agency' contract you developers in NYC is 150-275 /hr. It makes sense to do that when you don't have the time to assemble a team from start.
It's an employee market right now. 8+ years experience can be from 120-200k base, with a bonus on top. Hourly you'll expect 100-160hr.
Yes you can find people who are 40-80/hr -- but they almost always lack the experience and skills to bring a project to fruition on time , budget & expectations -- that's why they're still entry level. If you have a solid CTO or some Sr devs -- then sure, hire the junior people and develop their skills. Otherwise, what the fuck are you thinking? Stop trying to cut corners on your own product. For a "CTO" to come in, its all over. Rates are different as well, esp with equity packages. My compensation from Startups is vastly different than what Corporations pay me.