Agency Percentage. Does it matter or not?

[Spacecadet]

fundamentality all three parties are suffering from the same problem . . . greed!

Since when is greed a problem?
Greed is good

[filthy1980]

Since when is greed a problem?
Greed is good

is a problem when we recognise the greed in others but not outselves

[Coalman]

Happy with the agency keeping some of the money that the end client is paying them for my services to cover the cost of finding me, the role and matching the two together.

I am very lucky in that I am on a very low agency margin (7.5%) as the project I signed up to was expected to last 3 years (although I did not get a 3 year contract of course!!). I do not expect to get this level of margin again.

I would be angry if I found out an agent was taking a significantly high margin, but if I signed up to the rate then that's my fault for not asking for more.

At the end of the current project (next spring/summer), I will have been contracting 5 years, for two different clients, doing virtually the same work. The next contract will be hard to find and either myself or an agent will have to work hard (and earn their money) to find the opportunity for my particular specialism.

Basically, like everything in life, pay crap (low margin) get crap (service). As long as I am happy with my day rate, the agent can have whatever margin they can negotiate.

[Wanderer]

Is it not a pre-requisite to credit check every agency you work with for the insurance to be valid?? If not, congratulations, and good luck - I don't know of an insurance company in the world who would think that's an acceptable risk level!!

Fail. More agency FUD spreading.

Just for fun, I googled Agency failure insurance and guess what the first hit was?

Agency failure and default insurance | PCG

[The Agents View]

Fail. More agency FUD spreading.

Just for fun, I googled Agency failure insurance and guess what the first hit was?

Agency failure and default insurance | PCG

What kind of response is that?

The use of a question mark, suggests that my post was a question. Surely it is best practice to make sure you credit check the agencies, despite this insurance policy, as it does state that all reasonable efforts should be taken to avoid a situation where a claim would be made.....which I would interpret as "don't work for two bit agencies who could fold at any time!"

[vjmac108]

just a thought here, if the markup was reduced on a contractors rate - why would it be assumed automatically that the difference would go on top of the contractor rate? I would offer that most companies would attempt to take the difference off the total cost.

[d000hg]

just a thought here, if the markup was reduced on a contractors rate - why would it be assumed automatically that the difference would go on top of the contractor rate? I would offer that most companies would attempt to take the difference off the total cost.

Sure, if they know the details.

[MrHelpful]

My agency is taking 17% of my day rate as their cut. I've done this gigs for 6+ months but am coming up to renewal at the end of the month. I always said to the agent I would want a rate review at the end of this contract. I am prepared to walk as I would like a rate rise (i.e. through a lower agency cut - asked them to drop in 12% - not asking much but this agency is greedy (its one of the big players) I know the client would possibly pay a bit more but why should they suffer - its the NHS so don't want to screw them. My renewal is also only for 3 months rather then 6 months due to budgets etc... what would one to do if in same shoes.

Also would it seem wrong if I was to pack up and take my business via another agency or is that not the "done" thing... I am sure some agency would love to get their foot in and be prepared to take a 10% rate margin given its a free ticket in most eyes with potential for other business.

[Wanderer]

despite this insurance policy, as it does state that all reasonable efforts should be taken to avoid a situation where a claim would be made.....which I would interpret as "don't work for two bit agencies who could fold at any time!"

I don't see see anything in the policy that tells me I am obliged to run a credit check or not work for a "two bit agency". If it were such a big deal then surely the underwriters of these policies would run the credit checks themselves as they would be much better placed to assess the risks. My reading of that policy is that it says "don't do anything dumb and you are OK"

Each to their own I guess.

[d000hg]

My agency is taking 17% of my day rate as their cut. I've done this gigs for 6+ months but am coming up to renewal at the end of the month. I always said to the agent I would want a rate review at the end of this contract. I am prepared to walk as I would like a rate rise (i.e. through a lower agency cut - asked them to drop in 12% - not asking much but this agency is greedy (its one of the big players) I know the client would possibly pay a bit more but why should they suffer - its the NHS so don't want to screw them. My renewal is also only for 3 months rather then 6 months due to budgets etc... what would one to do if in same shoes.

So you want more money for doing the same work, but the agency is greedy for wanting the same amount?