Agency Commission / Markup

[XLMonkey]

So you are a contract typist?

Used to be - started out doing that, then somehow turned that into a business analyst role. Have blagged my way from job to job ever since - still looking for something I can actually do....

[jim2406]

off topic, but i think touch typing is extraordinarily important.

i'm a developer and my ability to type fast (100+ wpm) means that usually my hands are moving at the speed of thought, rather than significantly behind it.

i would highly recommend all developers become experts at typing; not doing so dramatically hits your productivity.

[mikedarv]

Sorry to bump an old thread, but as it’s along the same lines to save starting a new one…

Back in September I got an offer through with a daily rate and the agent said make an offer ‘being as competitive as possible’. Being out of the game for almost a year and thinking I was up against 20 other applicants I went in around £50 lower than what was on the table.

I was happy with what I was getting, not a problem there. Now a few months down the line after realising I was the only applicant for the job and seeing that the agency are getting 35% after seeing the project costs etc I can’t help but feel the agency just took advantage a little bit to line their own pockets.

Being a relative newbie what’s the best way to approach this with a contract extension coming up? I know my clients budget hasn’t changed since September so do I go to them and ask for a rate rise or go to the agency?

Furthermore does the client actually know what my rate is or do they only see what they pay the agent?

Thanks.

[gables]

Sorry to bump an old thread, but as it’s along the same lines to save starting a new one…

Back in September I got an offer through with a daily rate and the agent said make an offer ‘being as competitive as possible’. Being out of the game for almost a year and thinking I was up against 20 other applicants I went in around £50 lower than what was on the table.

I was happy with what I was getting, not a problem there. Now a few months down the line after realising I was the only applicant for the job and seeing that the agency are getting 35% after seeing the project costs etc I can’t help but feel the agency just took advantage a little bit to line their own pockets.

Being a relative newbie what’s the best way to approach this with a contract extension coming up? I know my clients budget hasn’t changed since September so do I go to them and ask for a rate rise or go to the agency?

Furthermore does the client actually know what my rate is or do they only see what they pay the agent?

Thanks.

Your contract is with the agency and like you say the client might not know what you're getting, so you'll need to negotiate with the agency to reduce their margin.

If the role hasn't changed then I wouldn't expect the client to fork out more.

[VillageContractor]

Next time you negotiate ask for a pay rise or you walk. Depending on your relationship with the client it's worth discussing it with them.

Be prepared to walk if the agency don't budge.

[SlipTheJab]

Next time you negotiate ask for a pay rise or you walk. Depending on your relationship with the client it's worth discussing it with them.

Be prepared to walk if the agency don't budge.

^^^ This. And make sure the client is aware of the reason why you're bailing.

[northernladuk]

Be prepared to walk if the agency don't budge.

This. Agents do this day in day out. If they are ripping their contractors off to the tune of 35% they will have every single contractor coming back asking for a raise so will be very adept at blinking last.

I'm sure you'll get some money without too much of a fight to be honest but it comes down it if the agent grlets a sniff you won't walk he's got you by the short and curled.

[AnotherGuy]

Always wonder how this situation works:

Agent says the rate range is, let's say, £400-£500 and you ask to put you forward at £475 so that way you are a bit more competitive against other candidates, specially if the role and client are attractive and you really want the gig.

The Agent says, no prob, I will put you forward at £475, and then, 2 things could happen:

a) Agent really puts you at £475 + their markup, and the client sees a lower daily rate than other candidates, so might be inclined to fast-track your application and (granting meeting the requirements) give you the gig.

b) Agent puts you anyway at the top of the range, £500 + markup, so client sees the max rate, but you think you are being more competitive and "cheaper".

Then client choose you, and in both options you are paid the daily rate you agreed initially (not a problem here) but in option (b) agency is getting a hell of a lot more money from you, and you might never even know.

Is that how it works? Is this even legal?
If so, how to not play this game?

[VillageContractor]

Always wonder how this situation works:

Agent says the rate range is, let's say, £400-£500 and you ask to put you forward at £475 so that way you are a bit more competitive against other candidates, specially if the role and client are attractive and you really want the gig.

The Agent says, no prob, I will put you forward at £475, and then, 2 things could happen:

a) Agent really puts you at £475 + their markup, and the client sees a lower daily rate than other candidates, so might be inclined to fast-track your application and (granting meeting the requirements) give you the gig.

b) Agent puts you anyway at the top of the range, £500 + markup, so client sees the max rate, but you think you are being more competitive and "cheaper".

Then client choose you, and in both options you are paid the daily rate you agreed initially (not a problem here) but in option (b) agency is getting a hell of a lot more money from you, and you might never even know.

Is that how it works? Is this even legal?
If so, how to not play this game?

If you're willing to take the rate for option a then you are willing to take the rate for option b. In option b the agent played the game better than you, learn the lesson for your next gig or extension time

[AnotherGuy]

If you're willing to take the rate for option a then you are willing to take the rate for option b. In option b the agent played the game better than you, learn the lesson for your next gig or extension time

Not sure you've understood what I mean. It is also a hypothetical situation, I'm not talking about myself.

In both cases the rate is the same to your eyes yes, £475, but the £25 you cut was intended for the client, not for the agent.

I guess it is just a matter of trust. You can't really do much other than always aim for the top of the offered range. That way the agent can't pocket the difference, but this means never trying to be more competitive either, if you don't know where the rate difference is going to end.