Agents commissions

[YHB]

Worse, the agent works for the client and the contractor works for the agent. That's a Client-Main Contractor-Subcontractor model. However (unlike say the construction industry where this model works) the agent doesn't know squat about the project, so the contractor has a direct responsibility to the client as far as the work is concerned, though only to the agent as far as the money is concerned.

It is the agents' (who are the "Main Contractor", in this model) weakness that they are subcontracting all the work without understanding any of it. This is unusual in other fields where the Client-Main Contractor-Subcontractor model applies.

Hence the feeling that, unlike say a software house that would actually run the project work, agents are shirking the work but taking a large cut of the money. Hence also the (sub)contractor's legitimate concern that the client may feel he is paying for more than the contractor feels that he is being paid for.

Yup agree- big difference between supllying unskilled manual labour to a factory and a highly skilled specialist. The agent is nothing more than a 'finder' but often gets it into his head he is employing you. Muppets

[TheFaQQer]

Sorry, just had a couple of perm roles come in which I have just organised and delegated down to the team. Right where were we, ahh yes agencies. Personally I would have thought that the biggest benefit of an agency is that you are paid in advance then the agent chases the company you are working at for the money, saving you have to do this yourself. We employ someone in our accounts whose entire role is credit control. Now surely it must be better to have the option of being paid weekly rather than having to wait 3 months chasing down a big corporate?

Indeed (although I prefer a monthly billing cycle really).

My last permie job had a group of contractors - all bar one were through agencies, the other one was direct. Even though it was a small(ish) company to work for, it still took him a while to get his cheque (!!) each month.

[Another Dodgy Agent]

Why not then set up on your own? as assuming your employer takes most of that.

Yes he does but I probably see about 30% of that figure in salary and commission (shame about the 40% tax bracket).

However I do not have to worry about things like factoring, staff retention, staff costs, invoicing and timesheets approval, infrastructure costs, credit control, business rates, employers NI, advertising costs, marketing, expense accounts and so on.

This leaves me time to wine and dine my clients, buy many beers for my contractors - currently have 40 out on site so that alone takes up most evenings - and mentor and guide my little team of happy workers!

[YHB]

Yes and I can guess what their cut would be like!

But would you do it this way? Sell me to a client, take your well-earned reward from the client, but let the client pay me directly? That would be selling temporary workers. What you are doing is leasing them.

Incidentally isn't that exactly what happens when an agency places a body in a country that requires local employment/payroll company/etc? (except that it will be the payroll co and not the client who splits the fees to contractor and agent).

They wouldnt want that- because often the client is not often aware of how much the agent is taking from gross

[YHB]

Yes he does but I probably see about 30% of that figure in salary and commission (shame about the 40% tax bracket).

However I do not have to worry about things like factoring, staff retention, staff costs, invoicing and timesheets approval, infrastructure costs, credit control, business rates, employers NI, advertising costs, marketing, expense accounts and so on.

This leaves me time to wine and dine my clients, buy many beers for my contractors - currently have 40 out on site so that alone takes up most evenings - and mentor and guide my little team of happy workers!

but after 2 years or so of hard work, you would be in a position to employ people and take it easy like the people at the top of your company

[YHB]

Yes he does but I probably see about 30% of that figure in salary and commission (shame about the 40% tax bracket).

However I do not have to worry about things like factoring, staff retention, staff costs, invoicing and timesheets approval, infrastructure costs, credit control, business rates, employers NI, advertising costs, marketing, expense accounts and so on.

This leaves me time to wine and dine my clients, buy many beers for my contractors - currently have 40 out on site so that alone takes up most evenings - and mentor and guide my little team of happy workers!

roughly, 850k @ 30% = £255k
£255k @ 60% = £153k


Why you not retired yet? I would have invested a few years of it and be relaxing/doing something more self-worthwhile .

[smiff]

lol, if a pimp is grossing 255k, I am REALLY in the wrong game.

Off to tweak my CV to look like a recruitment consultant. Cya all!

[DodgyAgent]

Er I think my colleague may be exaggerating a little

[TheFaQQer]

Er I think my colleague may be exaggerating a little

Really - an agent exaggerating, whatever next!!

[DodgyAgent]

Really - an agent exaggerating, whatever next!!

Bullsh*t is part of our make up