Agency thoughts

[Lance]

Turning To Recruiting

So you're NOT proposing to replace agencies at all?

You just want a client to pay you a fee to access a database of contractors?

[itjobs]

Many of whom replied seem to be worried about running our own network (accountants, how much it would cost, taxes and so forth). These are minor issues.

Running a site costs from £50-£100 per month (if million users use it). We can afford that - I can personally take care of that.

Lawyers to draft the contract???? - How do you ever know if your contract is drafted by a lawyer and why?
Accountants to run the company - it is not a profit making initiative. If there were profits, my accountant will take care of it for £100 per annum.
Compliance - What kind of compliance do we need, other than being a registered entity?
Cashflow - Grr... for what?
Business insurance - Yes. I have got it to cover up to 10 mill.

[itjobs]

So you're NOT proposing to replace agencies at all?

What do you mean? Would you like explain? I am proposing running our own network by ourselves where only contractors can operate.

[gables]

OP, are you suggesting that once found by the client the contractor is direct with the client?

[Lance]

What do you mean? Would you like explain? I am proposing running our own network by ourselves where only contractors can operate.

You started off saying you want to replace the agencies. It seems that you don't. But that you want to provide a directory of contractors. And..... Charge what is effectively a rather large fee, to the client for not doing anything at all.
I'll admit it's a better business model than I thought you were proposing.

[itjobs]

OP, are you suggesting that once found by the client the contractor is direct with the client?

If a client has reached you through our contractor network and would like to deal with you directly, then there are no obligations. Please bear in mind that many companies would like to deal with entities rather than individual contractors. Companies don't like keeping track of too many individual entities/companies. So our network would help there (with a 2%-5% commission).

Imagine a company that employs 100 contractors. They would like to simply their process. That is why they prefer agencies.

So we are our agency and dictated by our own, making sure that we don't pay more than 2-5% of our hard work (just to run the site).

If the client is willing to process you as a separate entity, you are free to do so.

Bottom line is this. We have invested years of hard work to be where we are now. Why should we give a cut of our worth to some one who doesn't have clue of it.

[itjobs]

You started off saying you want to replace the agencies. It seems that you don't. But that you want to provide a directory of contractors. And..... Charge what is effectively a rather large fee, to the client for not doing anything at all.
I'll admit it's a better business model than I thought you were proposing.

Lance, you may have misunderstood. What I am proposing is this. Let us have a network where we only allow contractors and direct companies to register (no agencies).

If companies are not interested in dealing with individual contractors, then they can go through our network (which is a registered entity) which is acting like an agent and the contractor would likely expect a cut of 2%-5% for administrative expenses (2%- when they find their own job, 5% when a job is posted by another contractor who gets 2% as commission). This is purely to help big companies to include us as a preferred supplier (ensuring flow of candidates).

We will have our own testing arena, to identify best candidates (technical).

There is no large fee involved, its just we are sharing our profits if the job is posted by a contractor.

[gables]

Many of whom replied seem to be worried about running our own network (accountants, how much it would cost, taxes and so forth). These are minor issues.

Running a site costs from £50-£100 per month (if million users use it). We can afford that - I can personally take care of that.

Lawyers to draft the contract???? - How do you ever know if your contract is drafted by a lawyer and why?
Accountants to run the company - it is not a profit making initiative. If there were profits, my accountant will take care of it for £100 per annum.
Compliance - What kind of compliance do we need, other than being a registered entity?
Cashflow - Grr... for what?
Business insurance - Yes. I have got it to cover up to 10 mill.

Lance, you may have misunderstood. What I am proposing is this. Let us have a network where we only allow contractors and direct companies to register (no agencies).

If companies are not interested in dealing with individual contractors, then they can go through our network (which is a registered entity) which is acting like an agent and the contractor would likely expect a cut of 2%-5% for administrative expenses (2%- when they find their own job, 5% when a job is posted by another contractor who gets 2% as commission). This is purely to help big companies to include us as a preferred supplier (ensuring flow of candidates).

We will have our own testing arena, to identify best candidates (technical).

There is no large fee involved, its just we are sharing our profits if the job is posted by a contractor.

So, if the client deals with the network (rather than direct) won't the network need capital as indicated in other replies to service the billing?

For me one of the benefits of an agent is I get paid within a week when they'll be on 30,60,90 day terms

[itjobs]

So, if the client deals with the network (rather than direct) won't the network need capital as indicated in other replies to service the billing?

For me one of the benefits of an agent is I get paid within a week when they'll be on 30,60,90 day terms

Why do you need capital for? Marketing?, Office?, Advertising? - These are not at all required when the client know where they can find their potential candidates.

If the client would like to deal with the network then the network is like any other agency but will not take more than 5% of you cut, isn't?

These days, (at least especially in Finance) they are not paying until they get the money from the client (i.e four weeks). If you would like your payment terms to be different then obviously you are giving away more of your profits. Don't you think agencies calculated that?

Besides, our network will make it clear what the payment terms are with the client, helping us adjust our rates accordingly.

Its about being free and open to ourselves than keeping us in the dark.

[MrMarkyMark]

If the client would like to deal with the network then the network is like any other agency but will not take more than 5% of you cut, isn't?

These days, (at least especially in Finance) they are not paying until they get the money from the client (i.e four weeks). If you would like your payment terms to be different then obviously you are giving away more of your profits. Don't you think agencies calculated that?

Completely untrue.
I have always had weekly payments and I have worked in Finance for a long time.

I know for a fact that the agency that does this is on 90 days payment terms.