Agency Commission / Markup

[moonstar]

I found out today that my agency is taking 25% of my daily rate as commission. This seems excessively high and when I accepted the role I was told the client was on a tight budget and there was no margin for negotiation and so took this rate.

My clientco were surprised that I was on such a low rate but obviously would not know how much I would be getting just like me as the contractor would not know the agency rate.

Is 25% the norm or am I being fleeced here ? Should I take it up with the agent given he was blatantly lying and playing me off against the clientco ?

[pmeswani]

I found out today that my agency is taking 25% of my daily rate as commission. This seems excessively high and when I accepted the role I was told the client was on a tight budget and there was no margin for negotiation and so took this rate.

My clientco were surprised that I was on such a low rate but obviously would not know how much I would be getting just like me as the contractor would not know the agency rate.

Is 25% the norm or am I being fleeced here ? Should I take it up with the agent given he was blatantly lying and playing me off against the clientco ?

You were happy with the rate you were offered the role. Either walk away from the contract, or accept the rate you are on and carry on with the work. Re-negotiate your rate with the agency once the renewal is due....not before.

[pzz76077]

I found out today that my agency is taking 25% of my daily rate as commission. This seems excessively high and when I accepted the role I was told the client was on a tight budget and there was no margin for negotiation and so took this rate.

My clientco were surprised that I was on such a low rate but obviously would not know how much I would be getting just like me as the contractor would not know the agency rate.

Is 25% the norm or am I being fleeced here ? Should I take it up with the agent given he was blatantly lying and playing me off against the clientco ?

Did you bring the role to the agent or did they do all the work and get you the role??

PZZ

[moonstar]

You were happy with the rate you were offered the role. Either walk away from the contract, or accept the rate you are on and carry on with the work. Re-negotiate your rate with the agency once the renewal is due....not before.

But I accepted the rate on the understanding of my initial statement that there was no flexibility in rate, when clearly there may well have been. Is 25%norm for commissions ? And should I tell the agent that I know and am not happy about it ?

[BlackenedBiker]

You were happy with the rate you were offered the role. Either walk away from the contract, or accept the rate you are on and carry on with the work. Re-negotiate your rate with the agency once the renewal is due....not before.

Bulltulip......contracts can be re-negotiated at anytime, as long as negotiations are within the terms of the contract.

25% is way too high, looking at 8% (on a framework) to 12% (which is high IMHO).

Get the client in your pocket and then play hardball.

Good Luck

[beemarman]

Same thing happened to me, i found out my agency were making £150 a day off my hard work.

I contacted my agency to tell them that I've been offered another job with more money and unless they paid me an extra £50 i was going to leave.

They agreed to the rate hike.

Nothing ventured, nothing gained.

[stuart_75]

I've found out my agency is making a 100% markup. Ive seen the PO's to prove it.

Beat that!

[shrek1895]

Similar thing happened to me on my current contract, the agency had an exclusive agreement that had brought 4 of us on to site and were making 35% on each of us.

It didn't bother me overly, as I'd been more than happy with the day rate when I started. However, following a change of manager, it was brought to the new chaps attention and he re-negotiated on what ClientCo was willing to pay, splitting the saving 50/50 with us.

Win Win for all bar the agent, who'd had it far to cushy for to long and was still pulling in 15% when all was done and dusted!

[malvolio]

It's not a Markup!!

The agency won the business. You are getting a proportion of the fee they negotiated with the client. When you win your own business, then you can dictate terms.

[JustMe]

just go

I had the same thing. But the customer was complaining that I was very expensive. However my rate was not very high comparing with the other contracters. I found out that the mark up was about 45%. After I receiving bad service from the agency I did not renew the contract.