Agency Percentage. Does it matter or not?

[The Agents View]

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.

On this logic, given that you've been there for several years (which makes you a PERMANENT employee by the way), you will naturally be reducing the rate you charge to the client, to only cover your costs (ie no profit) right? So that's £20 for travel, a couple of quid for pens, and that's about it..... I'm sure your client will be ecstatic that you've decided to do exactly what they've asked the agency to do...

Oh you're not going to do that?? Oh I wonder why??

[The Agents View]

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'd love to bite on this - but your lack of knowledge, and understanding of the ways of the world doesn't even dignify a real response. If you speak to your IT suppliers like that, you'll no doubt be the next stalker candidate that I speak to......and fyi, fiddling with a few computers vs. understanding the psychology of the human mind, and trying to sell the only product in the world which CHANGES its mind - is no contest really. IT manager my 4rse

[Ignis Fatuus]

On this logic, given that you've been there for several years (which makes you a PERMANENT employee by the way), you will naturally be reducing the rate you charge to the client, to only cover your costs (ie no profit) right? So that's £20 for travel, a couple of quid for pens, and that's about it..... I'm sure your client will be ecstatic that you've decided to do exactly what they've asked the agency to do...

Oh you're not going to do that?? Oh I wonder why??

Possibly because the contractor is still doing as much work every day, unlike the agent who is still coining it from a bit of work done years ago.

[Ignis Fatuus]

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

Like used car salesmen are more talented than automotive engineers and designers?

[The Agents View]

Possibly because the contractor is still doing as much work every day, unlike the agent who is still coining it from a bit of work done years ago.

You still want paying?
You still want everything administered for you?
You still want us to factor payments so you don't go without money for 3 months?
You still want contracts raised?
Oh and I suppose when you want a new role, you want someone to jump through hoops for you, despite the fact that there's about a 20% chance you can be re-placed?

Yes I thought so. Well someone has to pay for it - and our business is to accumulate enough money, that we can justify investing time in you.

Stop kidding yourself that we should do it for free - this is our livelihood, and is free to you (you didn't actually think that cutting the agency out, means that you'd get paid more do you?). Ultimately, you should be embracing agencies, not slating them, they're a FREE sales channel for you. Unless you want to start PAYING for our services?

Essentially, other than the initial effort (which is more often than not unsuccessful) you are ultimately asking for the same thing

[DodgyAgent]

Like used car salesmen are more talented than automotive engineers and designers?

We all fit in way above you in the pecking order

[ChimpMaster]

You still want paying?
You still want everything administered for you?
You still want us to factor payments so you don't go without money for 3 months?
You still want contracts raised?
Oh and I suppose when you want a new role, you want someone to jump through hoops for you, despite the fact that there's about a 20% chance you can be re-placed?

<etc...>

Other agencies on-site do this for 4%. It's "tick over" business. Yes you've earned a year's commission, maybe 2 years... but how much more? When you place a permie, you get a commission of ~25% of that person's starting salary - you don't continue to get that every year do you.

[ChimpMaster]

On this logic, given that you've been there for several years (which makes you a PERMANENT employee by the way), you will naturally be reducing the rate you charge to the client, to only cover your costs (ie no profit) right? So that's £20 for travel, a couple of quid for pens, and that's about it..... I'm sure your client will be ecstatic that you've decided to do exactly what they've asked the agency to do...

Oh you're not going to do that?? Oh I wonder why??

Oh Dear, there are so many holes in this argument I think I'll just leave it be.

[jmo21]

Other agencies on-site do this for 4%. It's "tick over" business. Yes you've earned a year's commission, maybe 2 years... but how much more? When you place a permie, you get a commission of ~25% of that person's starting salary - you don't continue to get that every year do you.

Come on now, you're not helping your argument - with permie, once placed agency isn't factoring payments are they?

Agencies are also a comfort blanket for employment claims for client co

I agree with a lot of what you are saying, but you're not comparing the same thing

[jmo21]

Oh Dear, there are so many holes in this argument I think I'll just leave it be.

I agree with this!