Provided that the "solid consulting rate" isn't pure bullshit, then I don't see the problem here.
In a traditional hiring process, you'd be hired, not work out in the first month, and then get fired. No unemployment or ongoing insurance for the employee, and a lot of paperwork and the possibility of a wrongful termination lawsuit for the employer.
By starting things off on a contract, both the employer and the employee have a chance to evaluate one another. It's really exactly the same as the traditional hire-fire process, but with less paperwork, and clear expectations on both sides.
In a traditional hiring process, you'd be hired, not work out in the first month, and then get fired. No unemployment or ongoing insurance for the employee, and a lot of paperwork and the possibility of a wrongful termination lawsuit for the employer.
By starting things off on a contract, both the employer and the employee have a chance to evaluate one another. It's really exactly the same as the traditional hire-fire process, but with less paperwork, and clear expectations on both sides.