Engineers who do consulting entrepreneur how earn by blogging blog

I'm not sure if this is the right subreddit for this question, let me know if it's not.

I'm looking for engineers who do consulting in any area of expertise to share some knowledge. I recently started a full time position at an energy company doing some pretty niche work. I found out that a previous professor of mine works in another department in the same company but on contract, ie he works for the company but as his own company. In other words, I found out he is able to charge the company an absurd hourly rate to do the same work that he used to do when he was an employee of the company. The only difference now is that he works for himself and can charge what he wants.

So my question is, how does someone get into that position? How does he get 15 to 20 years of experience working at a company and then can turn around and "quit" just to come back independently so he can charge his own rate? Is it through connections in the company? Why would the company still do business with him when they could probably find someone cheaper? Is it just because of his experience?

I know I could ask him, but unfortunately I don't have access to him right now and I'm not sure if he would share such information. Thus, I was wondering if someone can share their experiences and knowledge on here.

Thanks.

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