The incidence and extent of faculty consulting are examined, along with the characteristics of faculty who consult and those who do not, costs and benefits of faculty consulting, the economic status of faculty, and policy considerations. A conceptual framework and historical context are provided that relate consulting and other faculty activities to the traditional mission of most academic institutions. Various claims made about the benefits of faculty consulting are reviewed, along with potential costs. Attention is directed to trade-offs involved whenever faculty effort and other institutional resources are involved in an allocation decision. Information on the economic status of faculty and the economic position of the academic profession is considered, based on empirical research. Faculty salaries are compared to those of other similar professional groups, and the amount and kinds of supplemental income earned by faculty (from inside and outside the institution) are examined. Also considered are institutional policies and practices on faculty consulting and other activities producing supplemental income, with attention to major colleges and universities, and four-year colleges and community colleges. Areas for further research are suggested. (SW)