Agency Percentage. Does it matter or not?

[d000hg]

My gripe is when it comes to a renewal. The first time round I fully accept that the agent has done something, and possibly quite a lot in matching me up with the client and it's completely naive to think that they somehow don't deserve to be paid a decent amount for doing that.

But 6 months later, the renewal is essentially down to me, down to me impressing the client, and little to do with the agent. Yet they continue on the same terms. They're still providing a useful service for sure, but we still have to swallow the cost as if they've done all the c.v. searching, arranging interviews etc. for a brand new contract.

And in fact the one time that I got a substantial rate rise at renewal, it was me that made the case to the client. The agent presumably got a larger cut because of my sales effort, not his.

That's an interesting argument, I'd be keen to hear agents' responses.

[DodgyAgent]

That's an interesting argument, I'd be keen to hear agents' responses.

I have responded to that "argument". It can also be argued that the agent does'nt do any work once the contractor is placed, so why 6 months has any bearing on how long an agent should be paid for is beyond me. It is a bit like the speed limit. Why is it set at 30? why not 29? why not 31 mph. There is no right or wrong here it is a matter of what can be negotiated -that is business.

My point is that agents do not receive payment for 90% of the work that they do. Contractors pay nothing for agency services, and clients pay nothing to agents unless the bum is on the seat. So whilst it may be galling that the agent is still earning a margin after 6 months, it is how the whole agency/contractor model evens itself up and create the highly efficient system that exists.

[monobrow]

is a bit like the speed limit. Why is it set at 30? why not 29? why not 31 mph. There is no right or wrong here it is a matter of what can be negotiated -that is business.

Actually no.

There is a lot of science and evidence around speed limits - I suggest you visit Google inbetween your client entertaining and choosing your new rolex.

Speed limit - Wikipedia, the free encyclopedia

problem is that the only science agencies appear to use when setting their margins is - "What is the maximum amount of moneeeeeeey I can make from these mugs on both side of this "business" equation."

loadsamoney! look at my wad! etc etc

[DodgyAgent]

Actually no.

There is a lot of science and evidence around speed limits - I suggest you visit Google inbetween your client entertaining and choosing your new rolex.

Speed limit - Wikipedia, the free encyclopedia

problem is that the only science agencies appear to use when setting their margins is - "What is the maximum amount of moneeeeeeey I can make from these mugs on both side of this "business" equation."

loadsamoney! look at my wad! etc etc

The speed limits are set at 30 or whatever simply because it makes them easy to administer and easy to enforce. If they wanted to make transport safe there would be different speed limits for each different section of road that would change according to use and conditions. If they wanted to make transport safe then why not ban car use altogether?

As for greed, isnt it a bit rich for a contractor to accuse anyone else of being greedy?

[monobrow]

The speed limits are set at 30 or whatever simply because it makes them easy to administer and easy to enforce. If they wanted to make transport safe there would be different speed limits for each different section of road that would change according to use and conditions. If they wanted to make transport safe then why not ban car use altogether?

i'll ignore this as I have no desire to flame you for the hell of it, but what you describe is actually how it works anyway ("different sections of roads have different speed limits"), by use of these things call road signs.....

As for greed, isnt it a bit rich for a contractor to accuse anyone else of being greedy?

I am currently the Head of IT for a big household name. It has taken me approximately 20 years to gain the experience for this role. Possible in 10, maybe 5, but for me, it took 20 years.

During a career change a few years back (hence 20 years), I got to 4th interview stage with a headhunter, base salary was 25k, OTE about 150k (about what I earn now). In order to get in the mix for that role, took 20 minutes of having no sales experience and reading a script doing cold calls. need I carry on?

Btw, for any of you curious enough to know why I didn't get the job, MD first by phone, MD face to face, then team, then the "team leader" - who no word of a lie stunk of ale & dried p1ss and fell asleep while one of his lackies did my last interview. Maybe this was some kind of amazingly convulouted test, but after this 3rd "nod off", I told them that this wasn't the kind of organisation I wanted to work for and walked out - for some reason I didn't get the job and my opinion of agencies/headhunters/your sector reduced further - for some crazy reason.

[DodgyAgent]

i'll ignore this as I have no desire to flame you for the hell of it, but what you describe is actually how it works anyway ("different sections of roads have different speed limits"), by use of these things call road signs.....




I am currently the Head of IT for a big household name. It has taken me approximately 20 years to gain the experience for this role. Possible in 10, maybe 5, but for me, it took 20 years.

During a career change a few years back (hence 20 years), I got to 4th interview stage with a headhunter, base salary was 25k, OTE about 150k (about what I earn now). In order to get in the mix for that role, took 20 minutes of having no sales experience and reading a script doing cold calls. need I carry on?

Btw, for any of you curious enough to know why I didn't get the job, MD first by phone, MD face to face, then team, then the "team leader" - who no word of a lie stunk of ale & dried p1ss and fell asleep while one of his lackies did my last interview. Maybe this was some kind of amazingly convulouted test, but after this 3rd "nod off", I told them that this wasn't the kind of organisation I wanted to work for and walked out - for some reason I didn't get the job and my opinion of agencies/headhunters/your sector reduced further - for some crazy reason.

It is always someone else's fault when we don't quite make the grade

[monobrow]

It is always someone else's fault when we don't quite make the grade

Listen, I'm sure being an agent is hard work, long hours, tedious phone calls, lots of rejection – you need to be a certain TYPE of person to do that, I agree. But it takes no more ability than say... ummm, a street cleaner perhaps?

FACT – There is no way in hell you could do my job today. Manage 100+ people, understand the technology I have to, know all the processes, the industry, network of contacts.. impossible without years of experience. BUT.. ANYONE, honestly, ANYONE can pick up a phone and read a script, then 1/1000 times, rock up and go through a company brochure, then go back to your cheap offices and do a search on your "database", call a few contractors and try to squeeze the life out of their rate. Its like taking candy from a baby. Seriously.

But please, all of us on this forum have dealt with agencies, some of us on both sides and really, all of us wish we lived in a world where you didn't have to exist, cause if you didn't the world would be a better place.

"delusions of grandeur" - thats it.

[DodgyAgent]

Listen, I'm sure being an agent is hard work, long hours, tedious phone calls, lots of rejection – you need to be a certain TYPE of person to do that, I agree. But it takes no more ability than say... ummm, a street cleaner perhaps?

FACT – There is no way in hell you could do my job today. Manage 100+ people, understand the technology I have to, know all the processes, the industry, network of contacts.. impossible without years of experience. BUT.. ANYONE, honestly, ANYONE can pick up a phone and read a script, then 1/1000 times, rock up and go through a company brochure, then go back to your cheap offices and do a search on your "database", call a few contractors and try to squeeze the life out of their rate. Its like taking candy from a baby. Seriously.

But please, all of us on this forum have dealt with agencies, some of us on both sides and really, all of us wish we lived in a world where you didn't have to exist, cause if you didn't the world would be a better place.

"delusions of grandeur" - thats it.

I am just glad I was'nt born talentless enough to have to do your job

[ChimpMaster]

My client is trying to get the agency to sign a contract in which they have a graduated decrease in margin over the next 18 months, from current % down to 0.

After this the contractor no longer uses this agency.

Considering that I've been at this client for several years through the same agency, and that this agency has done absolutely nothing to secure my constant renewals, I personally see no reason why they should continue to charge the client 20%+ for providing no further added value to this deal. The new client/agency contract thus appears a fair compromise.

Of course, the agency is kicking and screaming and crying about it. And the problem is that they have the law on their side and so cannot be coerced into signing this new contract. Yes initially they won a good "business deal" as DA says, but logically and humanely there is no way they deserve to rip off client and contractor for so long.

All of which ultimately leaves my position here at risk, which is a lose/lose situation for client and me.

[DodgyAgent]

My client is trying to get the agency to sign a contract in which they have a graduated decrease in margin over the next 18 months, from current % down to 0.

After this the contractor no longer uses this agency.

Considering that I've been at this client for several years through the same agency, and that this agency has done absolutely nothing to secure my constant renewals, I personally see no reason why they should continue to charge the client 20%+ for providing no further added value to this deal. The new client/agency contract thus appears a fair compromise.

Of course, the agency is kicking and screaming and crying about it. And the problem is that they have the law on their side and so cannot be coerced into signing this new contract. Yes initially they won a good "business deal" as DA says, but logically and humanely there is no way they deserve to rip off client and contractor for so long.

All of which ultimately leaves my position here at risk, which is a lose/lose situation for client and me.

I doubt they will sue anyone but you should push them very hard