What's a standard agency cut / percentage

[Royston Vasey]

I guess my agency taking £30 from £400 is reasonable then.

[Maxamus]

I guess my agency taking £30 from £400 is reasonable then.

R E A S O N A B L E ?!?!?!


NOTHING IS REASONABLE!!!!!!!!

[Royston Vasey]

R E A S O N A B L E ?!?!?!


NOTHING IS REASONABLE!!!!!!!!

I suppose you're right - good point

[aj1977]

There is a difference between margin (which is the agency works to) and markup which is your perception of whats happening. For example, with you getting £250 and the agency getting £60, they see an margin of about 20% but you see a markup of 24%.

But as Mal said, you either like the number you're getting or you don't.

Hi,
Iam a newbie to contracting and have been called by many agents after they have seen my CV.Now based on the above ongoing discussion how do u know what is the agent's margin/markup etc.I have been asked whats my daily rate and i give him/her a number.I was under the impression that thats an all inclusive rate and the agent does not get anything from my figure.Is my understanding correct? Please clarify...
Cheers
AJ1977

[srennocks]

Hi,
Iam a newbie to contracting and have been called by many agents after they have seen my CV.Now based on the above ongoing discussion how do u know what is the agent's margin/markup etc.I have been asked whats my daily rate and i give him/her a number.I was under the impression that thats an all inclusive rate and the agent does not get anything from my figure.Is my understanding correct? Please clarify...
Cheers
AJ1977

Ok, first mistake was quoting a rate... don't! Either get in early with the question, 'what will the client pay?' (and take with pinch of salt) or just give a vague answer that your rate is between x and y, but isn't something you can quote until you've visited the client and assessed the requirement in more detail.

The agents markup/margin might be fixed if they're on a preferred supplier agreement, so you can always ask - might be as low as 7%. Simple answer is, there is no easy way of knowing the agencies rate - tends to be something you discover well into the contract. Best advice is not to worry about it too much and just continue to push for the highest rate for yourself.

Agents margin will be on top of your quoted figure.

[timh]

Now based on the above ongoing discussion how do u know what is the agent's margin/markup etc.I have been asked whats my daily rate and i give him/her a number.I was under the impression that thats an all inclusive rate and the agent does not get anything from my figure.Is my understanding correct?

Your understanding is correct.. Your agent will add a lump on top of what you say when he talks to the client, and not tell them what you're getting and what the agency's getting. Agencies do not like it if their margin is anything less than extortionate - which is fine, it's just part of the ecosystem. Sometimes, however, their markup will scare off clients and lose you work.

You can usually get them to tell you their cut with a bit of perseverence - they may act a bit shocked that you're asking because it's in their interests to propagate the idea that we shouldn't talk about it. The only other way of finding out is by talking to the end client (which is the main reason why an agent will say "don't discuss rate, leave that to me!" before you go to an interview).

Sometimes you find out when the client doesn't renew your contract because you're too expensive - then you have the discussion and he/she is shocked to find that you're actually working for peanuts and the agency is raping both of you.



Since I'm back in this thread, I might as well update: As of this morning, my wonderful agency representative has informed me that I'll be getting the full meagre sum I requested - though I'm not sure if he's done that by reducing his take or shafting the client, or a bit of both. Hopefully the former.