Direct v Agency

[tomtomagain]

This thread appears regularly but never is a workable alternative mode of working suggested.

We are at the end of a supply chain that does not mean that we are entitled to the full value of that chain.

Going direct is an option but comes with risks. It is not appropriate in all cases.

[colinrobinson]

ok heres an idea

This thread appears regularly but never is a workable alternative mode of working suggested.

The agency arrangement has matured over the years but what is lacking is contract transparency. The contractor doesn't trust he's been fairly and openly represented and the client is constantly hounded by agencies competing with undisclosed margins claiming to exclusively represent a contractor.

If we all agreed to working with say a 20% margin between agent and client (verifiable by invoicing) agencies would compete for the best contractor instead of the cheapest and client could choose an agency based on convenience and level of service as it should be. individual contractors could still compete on levels of compatency and suitability for roles. rates would remain flexible.

This could be accomplished by contractors signing up with a professional group along the lines of ipse (who would advertise the fixed margin benefits to the industry as a whole)

if you don't want to join the association your not compelled to do so.

[tomtomagain]

If we all agreed to working with say a 20% margin between agent and client

But no one would agree. If you say 20%. I'll undercut you by 5% and win more business. Someone else will undercut me. Quickly we'll be down to a lower level. That's free markets for you.

You are effectively asking for price-fixing. Why only limit the agents margin to 20%? Why not have an "agreed" daily rate for a .NET developer, a DBA or a Project Manager?

I agree that contract transparency between me and the agent is important but what the agent agrees with the end-client is not really my concern, technically it's none of my business.

The other major activity that agents do that people overlook, is that they get the contracts in the first place. These don't just appear in their laps by accident at zero cost. They have either cultivated the relationship over a number of years or have done an awful lot of cold-calling.

Any company can place an advert directly on Jobserve, LinkedIn, Monster or CWJobs but there are a tiny fraction of direct jobs on those sites and that has got to tell you something about how the buyer of contractual services feels about the current model.

[TykeMerc]

Any company can place an advert directly on Jobserve, LinkedIn, Monster or CWJobs but there are a tiny fraction of direct jobs on those sites and that has got to tell you something about how the buyer of contractual services feels about the current model.

Indeed, if the clients wanted to operate without the agencies then they would do so and the agencies would die off.

It is quite possible to do business direct if the client wants to and you're prepared to do your own sales, contracts and credit control and of course you've secured the work first without an agent involved.

If you're trying to cut an agency out of some existing work or relationship, unless your client is entirely on your side then you've no hope.

[colinrobinson]

But no one would agree. If you say 20%. I'll undercut you by 5%, You are effectively asking for price-fixing.

Nope I'm suggesting cost fixing, finding work is a cost to my business and that cost is the agency margin.

but your correct no one would agree, We are all short term greedy independent contractors competing among ourselves for work. and the agencies are eating into our profit not the clients. Thats likely to continue given the attitude here that nothing can be done and market forces can't be manipulated.

[Avalonia]

You seem to be assuming that the Client-->Agency-->Contractor model is meant to benefit the contractor.

Primarily it exists because it is of benefit to the client.

Show me where I assume anything ... of course it is not a benefit to a contractor .

[TykeMerc]

To manipulate market forces you need the ability to effect the market as a whole, to do that you need to control the supply chain.

If you're in a tiny niche market that's possibly achievable otherwise you would need the active cooperation of many contractors all of whom share the same vision, that's clearly unlikely.

There are quite a lot of large agencies with many hundreds of contractors and they don't control the markets either so imagining that contractors could ever control the supply chain is cloud cuckoo land thinking.

[Avalonia]

Many, in fact, I'd say the majority of clients do not want the hassle of direct contractors. They'd rather outsource all the admin to an agency.

Id also say there have been plenty of horror stories on here of contractors going direct and having difficulty getting paid. Having a war chest doesnt isolate you from the worry of not getting paid in full. It only acts as a buffer against delayed payment which can be something totally different.

I have had several direct contracts and never had a problem . Spend a bit of time building a relationship with accounts .
There is no downside being direct . Only the pimps have a problem

[tomtomagain]

I have had several direct contracts and never had a problem .

That doesn't mean there isn't any additional risk - as has been described by several of the posters on this thread already.

Only the pimps have a problem

Why refer to the RC as a pimp? Do you see yourself as a powerless prostitute? It's an odd mindset to have.

And more to the point .. they don't have a problem. They'll just go and find someone else to do the role.

[Avalonia]

That doesn't mean there isn't any additional risk - as has been described by several of the posters on this thread already.



Why refer to the RC as a pimp? Do you see yourself as a powerless prostitute? It's an odd mindset to have.

And more to the point .. they don't have a problem. They'll just go and find someone else to do the role.

The OP was asking for advice... I have never had a problem going direct . Save all the rest of your babble