Taking more than 30% commission

[Lewis]

Been contracting for 17 years and never been able to get the info up front from and agency. Frequently found out by backhanded methods of course.

I guess it depends on the agents you deal with. I'm in investment banking in London dealing usually with big agencies. I just ask and they tell me. It's never been the slightest bit of an issue. I can't explain why they won't tell you.

[Lewis]

I don't give a sh*t what the agency makes out the deal, I signed a deal with them for the money I was happy with, what they make is no concern to me.

That's cool. You do it your way and I'll do it mine. Just attempting to providing a balanced opinion for newbies on the board.

[Muttley08]

I appreciate both sides of the argument...but...

It does affect you in that if you're being charged at a high rate - it will decrease your chances of an extension.

Once you've signed, there's nothing much you can do about it - until extension time - assuming the client have got the cash to keep paying an inflated rate.

I've had to put up with this before - as long as you're happy with rate, and don't want to stay there years it's fine....just an annoyance.

[slackbloke]

I appreciate both sides of the argument...but...

It does affect you in that if you're being charged at a high rate - it will decrease your chances of an extension.

Once you've signed, there's nothing much you can do about it - until extension time - assuming the client have got the cash to keep paying an inflated rate.

I've had to put up with this before - as long as you're happy with rate, and don't want to stay there years it's fine....just an annoyance.

surely the same argument that applies to the contractor applies to the clientco, if they agreed to the rate initially they were happy with it (presumably if it was too high, they would not have paid it).

[blacjac]

I appreciate both sides of the argument...but...

It does affect you in that if you're being charged at a high rate - it will decrease your chances of an extension.

Once you've signed, there's nothing much you can do about it - until extension time - assuming the client have got the cash to keep paying an inflated rate.

I've had to put up with this before - as long as you're happy with rate, and don't want to stay there years it's fine....just an annoyance.

surely the same argument that applies to the contractor applies to the clientco, if they agreed to the rate initially they were happy with it (presumably if it was too high, they would not have paid it).

However as has been said before on other threads, the client knows that they are paying the agency more than the contractor gets. If the contractor goes direct the client would take this into account and reduce the amount they are willing to pay the contractor.

[slackbloke]

However as has been said before on other threads, the client knows that they are paying the agency more than the contractor gets. If the contractor goes direct the client would take this into account and reduce the amount they are willing to pay the contractor.

Yes, agree with both points, but not quite sure what point you are making in relation to agent taking a big % cut?

[NotAllThere]

Many clients have no idea what you're getting. If they're happy with the rate they're paying, and you're happy with the rate you're getting, then it is true that the agency margin is irrelevant.

There are times when it is relevant though. For example:

You are on £500, and client is paying £800. There's another contractor on site, who's roughly the same ability as you, who's also being paid £500. But the client is only paying £700. If it comes to a choice between you and the other contractor, it'll be you who gets the shove.

Client announces across the board 10% rate cut. They now pay £720 for you, and £630 for the other guy. Which of you has a better negotiating position with the agency to stay on or close to your rate of £500?

Client has a new project, and wants the more senior guy to be involved with it. That's you, cos they pay more.

Knowing the margin is very valuable business information. You should try very hard to get that information. It is directly in your interest. But find it out before you sign the contract. Otherwise, just put up and shut up.

Also a low margin means that the agency is more at risk of failing, is more likely to have poor payment terms etc.

[macca1971]

Why pay the middle man?
I have been introduced to the newly launched site ZubedJobs, that enables you to contact local employers, and local employers to contact you.

Simply put, ZubedJobs (www.zubedjobs.com) (WHICH IS FREE) lets you find employers near you! It gives you access to previously inaccessible data such as the technologies and skills used within these organisations, in addition to directly advertised vacancies, both permanent and contract.

- Map companies by the skills they employ, even if they’re not advertising a current position
- Map companies that have current vacancies for your skills
- Apply directly to employers

THINK ABOUT IT GUYS “…if all work seekers uploaded their information, asked friends colleagues and clients to do the same, just think how quickly the ‘middle man’ could be bypassed, meaning more money in your pocket!”

Why not check it out and then we will not have anymore 30% fees !!!!!


no agencies – no fees.:yay:

[DaveB]

Also a low margin means that the agency is more at risk of failing, is more likely to have poor payment terms etc.

Not neccecerily. Large agencies with sole supplier agreements, or with multiple bodies on the client site, typically charge the client much lower rates. Often less than 10%, lowest I've seen was 5%. The agency had over 100 contractors with the client, was in no financial trouble and always payed on time. Interestingly enough they also used PCG approved contracts, which was nice.

[NotAllThere]

OK, I'll rephrase that:

Also a low margin means that there is a higher risk that the agency your dealing with will fail, is more likely to have poor payment terms etc.

hth