If you are looking to go direct you have to take a very long term view of it. You will need to develop your network, stay in touch with older customers and create referral groups with other contractors.
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Tips on going direct?
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Contractors mistakenly assume that if they cut out the agent they get to keep the agent's margin. The problem is the margin doesn't belong to the contractor it actually belongs to the client. A client who is paying a contractor directly will expect to pay less for the contractor, otherwise why should they bother.I'm alright JackComment
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Originally posted by BlasterBates View PostContractors mistakenly assume that if they cut out the agent they get to keep the agent's margin. The problem is the margin doesn't belong to the contractor it actually belongs to the client. A client who is paying a contractor directly will expect to pay less for the contractor, otherwise why should they bother.Comment
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Depending on how big the margin is, there might be easily enough pie for both parties to get a slice.
Every company I've worked (contractor or employed) has really hated how much recruiters et al cost them and consider it about as distasteful as we do; caveat I work at smaller companies.Originally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishingComment
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Originally posted by BlasterBates View PostContractors mistakenly assume that if they cut out the agent they get to keep the agent's margin. The problem is the margin doesn't belong to the contractor it actually belongs to the client. A client who is paying a contractor directly will expect to pay less for the contractor, otherwise why should they bother.Comment
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Originally posted by Robinho View Post
The burden of the agent fee is shared between the client and contractor. In a world where everyone had perfect knowledge of gigs and contractors available, contractors would charge more and clients would be saving money as well.I'm alright JackComment
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Originally posted by BlasterBates View Post
It isn't shared, if it were the contractor would pay the agent commission. Basically a contractor quotes a rate, the agency pays that rate in full, the client then pays extra to the agency for the service provided by the agency. A client will rightly see that not using an agency will result in a cost saving to the client.Originally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishingComment
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Originally posted by d000hg View Post
Do agencies all use fixed (and transparent) margins these days or is there still a lot of murkyness that the client has no idea how much extra the agency is costing them?
Large clients dictate the rates to the agency.
But there may be another agency below that who takes the margin they want.
Smaller clients get less say as they less buying power.See You Next TuesdayComment
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Originally posted by d000hg View Post
Do agencies all use fixed (and transparent) margins these days or is there still a lot of murkyness that the client has no idea how much extra the agency is costing them?
If it's not a fixed margin then I'm sure the clients know what the agency is costing them. It's in the paperwork. What they won't know in some cases is how much the agent is paying the contractor. We've had a couple of threads on here where the client has been surprised by the rate the agency is taking. They are paying 500 quid and getting a 300 quid contractor so should be concerned about that but I don't think it's commonplace. It's very bad business by the agency to do that to a client so as pretty rare thankfully. .
We know that rates can be from 8% to 20% and that is dictated by the number of contractors on site and so on so a client has to expect if they only have a couple of contractors the agent cut is going to be higher than a sausage factory situation so the agency can make their money.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by BlasterBates View Post
It isn't shared, if it were the contractor would pay the agent commission. Basically a contractor quotes a rate, the agency pays that rate in full, the client then pays extra to the agency for the service provided by the agency. A client will rightly see that not using an agency will result in a cost saving to the client.
So we are both paying for agents even though the client is the one that ponies up the cash.
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