Hi there,
Recently managed to get a 12 month contract direct with a client. No middleman shenanigans so am lot$ better off $$ wise. They have just started advertising for another role (same position as me) through the usual agencies. These agencies are charging a much much lower daily rate that I am on, so they are likely to be making €20-30k over the year.
And speaking to the hiring manager, they are usually sent a bunch of CVs that simply should not have been sent to them in the first place. I have a number of people that I could personally recommend and have been thinking about having this as another ‘offshoot’ from my main consulting services. I don’t however wish to have the admin and general hassle of an agency setup (i.e. I don’t wish or have the time to become a semi-agency) so was thinking of charging the client a one off introductory fee and then allowing the candidate and client to negotiate a daily rate independently of me.
I’d like to think that the client would favour any candidates that I could refer to them (simply because I have personally worked with them), but obviously it would have to be in line with what most agencies are charging them.
So I am thinking of charging the client a referral fee of €10k for a 12 month contract followed by €5k for any contract extension thereafter. This is likely to be cheaper than any candidates that the agencies come up with and I’d introduce better caliber candidate too.
Just wondering what people’s thoughts are on this approach. As I see, it’s a win situation for all:
- Contractor gets to deal with client direct (and as I would be making less ‘commission’ than an agency) the contractor has more bargaining power than they would through an agency.
- Client gets a contractor whom I can personally recommend and may also be paying less (again, as I would be making less ‘commission’ than an agency).
- And obviously I’d be making money for referring people that I personally have worked for and know are able to do the job. Less risk for the client.
Comments/thoughts welcome!
Is my approach flawed? Charging too much?
PC
Recently managed to get a 12 month contract direct with a client. No middleman shenanigans so am lot$ better off $$ wise. They have just started advertising for another role (same position as me) through the usual agencies. These agencies are charging a much much lower daily rate that I am on, so they are likely to be making €20-30k over the year.
And speaking to the hiring manager, they are usually sent a bunch of CVs that simply should not have been sent to them in the first place. I have a number of people that I could personally recommend and have been thinking about having this as another ‘offshoot’ from my main consulting services. I don’t however wish to have the admin and general hassle of an agency setup (i.e. I don’t wish or have the time to become a semi-agency) so was thinking of charging the client a one off introductory fee and then allowing the candidate and client to negotiate a daily rate independently of me.
I’d like to think that the client would favour any candidates that I could refer to them (simply because I have personally worked with them), but obviously it would have to be in line with what most agencies are charging them.
So I am thinking of charging the client a referral fee of €10k for a 12 month contract followed by €5k for any contract extension thereafter. This is likely to be cheaper than any candidates that the agencies come up with and I’d introduce better caliber candidate too.
Just wondering what people’s thoughts are on this approach. As I see, it’s a win situation for all:
- Contractor gets to deal with client direct (and as I would be making less ‘commission’ than an agency) the contractor has more bargaining power than they would through an agency.
- Client gets a contractor whom I can personally recommend and may also be paying less (again, as I would be making less ‘commission’ than an agency).
- And obviously I’d be making money for referring people that I personally have worked for and know are able to do the job. Less risk for the client.
Comments/thoughts welcome!
Is my approach flawed? Charging too much?
PC
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