agent cut, "percentage basis"

[protractor]

Frequently, agents discussing a contract will claim that their compensation is a fixed percentage relative to my own rate, and therefore they are on my side and want to get the best rate possible for me. At the same time they actually try to get my rate down as far as they can. So I generally assume that they are just trying to push out their margin at both ends, while misleading me as to what they are doing.

My question is: are there any actual instances where clients do hold agents to this "fixed percentage" model?

[Crossroads]

My question is: are there any actual instances where clients do hold agents to this "fixed percentage" model?

Yes.

[Zippy]

Yes. I checked with one of my clients (where a percentage margin was being claimed) so this could be true. It was low percentage as well. Tee hee

[BrilloPad]

My question is: are there any actual instances where clients do hold agents to this "fixed percentage" model?

Its very common in IBs.

[TykeMerc]

It's a common enough model when the client is large, has a PSL and uses a fair bit of resource.

[TFour]

Yes, my clientco has this open-book/fixed terms relationship with the agency.

[sweetandsour]

My question is: are there any actual instances where clients do hold agents to this "fixed percentage" model?

Yes this does happen sometimes.

However you are right to be suspicious that the agent might be "trying it on".

[The Agents View]

Yes this does happen sometimes.

However you are right to be suspicious that the agent might be "trying it on".

I think you can look at this a number of ways. Sometimes the recruiter doesn't have the budget to get you in and get their margin right (and whilst they can take a cut, it doesn't make their boss very happy ) so they're squeezing you in order to shoehorn you in.

I do use the "more you get the more I get" line quite regularly, and often because I want the interim to feel confident that I am looking for the best deal for them - even if I don't have terms agreed. But rest assured, right at this moment, every single client asks what margin we're charging, and lying to them is quite simply counter productive - most people get chatting in the pub within a week and tell the client their rate anyway - Whenever I use that line, and I haven't got terms in place, I quote our highest possible rate - that way I know I can still make the deal happen, without impacting the rate agreed with the contractor. It's swings and roundabouts for me personally - sometimes the maths turn around to 15%, sometimes they get to 25%, but as long as the interim is happy and the client is happy, there shouldn't really be a problem what the margin is. It only ever gets nasty when the contractor turns out to be a lemon.

TAV