Outrageous Agency Commissions

**Blow Bug** · 16 February 2003, 18:43

Rip up the contract and go direct with the client.

**Mad pistachio nut** · 16 February 2003, 19:08

worst thing I have ever heard

I can not believe that an agency would have the thieving mentality to try and make £230 a week, thats nearly a thousand pounds a month! Do not deal with them, name and shame! Disgusting rip off if you ask me. You should wright to FRES and your MP about this company. You should also try your Euro MP. Disgusting capitalism at its worst! Just to think that this firm may have helped you to earn over £50,000 and want payment from thier customer, amazing. Errr, I think I'm going mad. Do not deal with Agencies, they all try and make a profit and they are not even any good at that at the moment. Stay unemployed is my advice, that way no thieving company can make a profit out of you. Good luck.

**jcumpsty** · 16 February 2003, 19:19

Why are people such dicks?

I am not complaining that the agency wants to make a profit. 25% is fine for the first say 6 months of the contract. but if this contract goes on for 2 years then I think it is excessive, expecially when the contract is not continuous work. I still have to submit proposals and have spent a few days working for free so far.

**Mark Snowdon** · 16 February 2003, 20:50

You chose to sign the contract.

the time to whinge was BEFORE you signed

**DodgyAgent** · 17 February 2003, 15:44

Can you give me the name of the RC? I want to offer him/her a job.

**owenj555** · 17 February 2003, 16:24

How does everyone work out the margin percentage?

I always thought it was set as a percentage of the gross amount, which would make the above example 20% and not 25%???

Still far too high, but hey.... it's not me

**Mad pistachio nut** · 17 February 2003, 23:15

Margin

devide the difference between the buy and sell price by the the sell price and times by 100.
To the moaning contractor, you run your own company, employ a sales/marketing person, after all its a real company right? Or employ freelance ones, ( like the agencies you use ) but please stop moaning about your overheads.

**DimPrawn** · 18 February 2003, 09:17

Who is the biggest idiot...

...The client for paying 25% more than the cost of obtaining the skills they require, or the contractor for working at a rate 25% below what the market is willing to pay.

Who can say what a fair margin is?

Is it fair that Sainsbury's buy carrots for 10p/kg and charge the customers 40p/kg?

Live and learn. Find out the margins before you sign and negotiate hard at every contract start or renewal.

Push the client to pressurise the agency margins.

Now stop yer moaning and act like a real business in future.

**janekczekaj** · 18 February 2003, 18:58

Re: Who is the biggest idiot...

I had a gig last week where an agency, which now has an 'IT consultancy' arm which bids for work, wanted to bid for a broadband project.

They had no broadband expertise and so asked me to be their guru to help them win the bid. They asked me how much I would charge for that particular project and I gave a rate of £500 per day.

However, when we arrived at the client to deliver a presentation I was giving a doc by them which detailed the proposal, costs, etc, and discovered, to my shock, that they had put me down at £870 per day.

Now, were they being greedy? Am I charging myself out at too little? Did they bump up my fee to nearer what they know the client would pay or were they just trying to make a fat commission out of me????

They did not win the work and I do wonder whether they were simply charging too much? Then again, knowing the nature of such work, perhaps neither of us were charging enough? Who knows!

Outrageous Agency Commissions