Agency Commission / Markup

[OnceStonedRose]

The only reason I'd be at all mithered about how much the agency is creaming from introducing me to the end client, would be if they were getting so much that their client was expecting some sort mythical developer who is 10 times more productive with 10 times less bugs etc...

So long as the rate advertised and agreed was cool then why bother?

At renewal time I can see the knowledge being handy for negotiating an increased rate but other than that?

[psychocandy]

The only reason I'd be at all mithered about how much the agency is creaming from introducing me to the end client, would be if they were getting so much that their client was expecting some sort mythical developer who is 10 times more productive with 10 times less bugs etc...

So long as the rate advertised and agreed was cool then why bother?

At renewal time I can see the knowledge being handy for negotiating an increased rate but other than that?

But thats the problem sometimes. Client is paying champagne money for a beer contractor maybe.

Can cause problems. If client is paying £500 and contractor is getting £250 then client is going to wonder why contractor is just a bog standard BAU support head. Client is going to assume that a lot of that £500 is going to contractor.

At current client, one of the managers told me how much they were paying and thought I got all of that. I told him my rate and he was surprised that agency got, in his head, this money for nothing. Margin was only 8% too!

Bet theres a lot of clients out there who don't really understand the model and percieve contractor getting all of what they pay.

[northernladuk]

Bet theres a lot of clients out there who don't really understand the model and percieve contractor getting all of what they pay.

I find that very hard to believe but that said there are more than enough contractors that don't have a clue either so you never know.

[psychocandy]

I find that very hard to believe but that said there are more than enough contractors that don't have a clue either so you never know.

?? Really. I've met loads of managers who just think contractors are some sort of temp. They know agencies are involved somewhere and must get paid for something but dont really know how it all works.

[sharky]

I make it point to ask clients at 1st renewal point after i been in the door 2 or 3 months whats the Rate your being charged by the agency most are forth coming with that info for the others that are not so given "pillow talk" with their secretary also can be useful.

That one did back fire a wee bit ones the said secretary knew what i was on the next dinner date cost me lot more then KFC bucket deal.

Most i have found agent making out of me was 12.5% and that was a client wide fixed margin.

[northernladuk]

Maybe that's the impression you give them.

[TheFaQQer]

Yes but this was before he started. (It wasnt me BTW!) So I guess its difficult to check with the client whether this is true or not.

You check as soon as you can then - if I was told before I started that the client had budget problems, that would immediately set the alarm bells ringing. So you ask the PM about the budget problems, because you need to know whether there is an increased likelihood of the project getting canned, and when they say "no, there's no budget problem, we haven't cut the rate" you go back to the agent and give them hell / your notice.

Why one would wait for a year before mentioning anything about the budget risk beggars belief.

[TheFaQQer]

?? Really. I've met loads of managers who just think contractors are some sort of temp.

If the shoe fits...

[SimonMac]

?? Really. I've met loads of managers who just think contractors are some sort of temp. They know agencies are involved somewhere and must get paid for something but dont really know how it all works.

No offence but I guess it depends on the role, 2nd line support roles probably are temps.

[OnceStonedRose]

I make it point to ask clients at 1st renewal point after i been in the door 2 or 3 months.....

Again, don't see why. You know your rate and that is good enough, because you accepted it.

I find it hard to believe that if your rate was £300 a day but end client was shelling out £500 + p/d that you'd need to ask. You would have already been made aware by month 2-3 that you are performing way below what they are paying for, that's just how business is.

Trying to wangle the agency cut out of the end client is only ever going end up with you whining because you think they're skimming too much, just accept the fact that they are paying for what you agreed when you signed up for the gig surely?