Agency introduction referal fee

**tim123** · 11 January 2008, 08:19

You are being gready.

It is much, much more difficult to acquire a client than a contractor. Of the 15% margin, at least 5% will disappear in finance costs. Expecting half of the rest, for less than half of the work, is unreasonable.

Having said that, 100 quid is an insult! (In case any agents are reading)

tim

**ratewhore** · 11 January 2008, 08:24

I did the same thing a few years back and ran some contractors through my Ltd taking a minimal cut (<5%) instead. This meant the derisory £125 voucher I was offered by the pimp turned into profit of around £35K for the year...

**NotAllThere** · 12 January 2008, 08:38

I got £4000 for a referal direct to a SAP consultancy in 1998. That was 10% of the salary.

10% of the agency cut doesn't seem unreasonable. For a £50k salary, with agent 20% cut that would be £1000.

**thunderlizard** · 13 January 2008, 23:13

Yes, try asking an agency to find you an employee for £150 in Virgin Megastore vouchers and see how seriously they take you.

I'd be wanting 5-8% or first year salary, which should leave the agent at least 20%.

incidentally a new agency sent me its ratecard the other day. They charge 20%-30% first year salary (sliding scale), and -this is the really cheeky bit- you only get a discount if the guy quits within 3 months. Especially, if they stay for between 1 and 4 weeks you still have to pay half the fee. Nice churning if you can get it!

**richy** · 14 January 2008, 00:20

hehe, that is a bit crap! I think I would only agree terms to pay the agency after 90days had passed! One agent just upped his offer to 3.5%! but that's still so low.. another which was spamming me about permie positions said they didnt need to do referals as they were finding loads of candates on their own. think that is becoming a prob in the uk.. too many computer science graduates..

Agency introduction referal fee