How much are agencies getting out of a 500pd contract?

[northernladuk]

The point of Clientco going through an Agent means they distance themselves from the chance that you are a deemed employee in the eyes of HMRC - but that works both ways (IR35 anyone??).

I am sorry but I believe this is just utterly wrong.

[Boo]

IMO it should not concern you. Are you happy with what the agency offered?

With respect this is a silly thing to say. Of course the OP will want to obtain as much of the agencies cut as s/he possibly can, s/he is running a business after all !

To the OP : The agency would be taking not less than 10% and maybe up to 30%. I'd ask for 15% and settle for 10%, but i's up to you.

Boo

[Boo]

Actually the agency get all of it. You get a proprortion of what they earn.

Utter nonsense. The only person who provides any value in the chain is the contractor. They earn all the fee value and the agency takes a proportion without doing anything in return.

Boo

[Stan.goodvibes]

The agency would be taking not less than 10% and maybe up to 30%. I'd ask for 15% and settle for 10%, but i's up to you.

Yup in my 15 years experience I'd be picking the agent is charging the client about 600 - 700 depending on their relationship with the client, the state of the market, and how gullible they thought you were at offer time.

I'd probably throw out 600 but hint that I'm flexible, and see what happens. As in all bartering situations, it pays to aim high because you can always go down but you can't go back up. The clientco says 550 and you come back with 580 and eventually settle on 575

[chef]

However, the OP might go in with a 600 offer and the agency has only been adding 13% to the contractors rate (or giving the contractor 87% of the billable amount depending on how you see it). Anyway, so with the OP offering more than an agency, maybe the client simply thinks "is it worth the hassle of negotiating when we have a PSL agency in place with rates agreed?" and simply tells the OP "thanks, we'll think about it" and calls up the agent straight away, no bartering involved, the OP loses out for being greedy.. just saying like.

[JamJarST]

Utter nonsense. The only person who provides any value in the chain is the contractor. They earn all the fee value and the agency takes a proportion without doing anything in return.

Boo

You missed Mal's point though, in the transaction flow it is the Agency that is paid by Clientco for the whole job, who then subcontracts to the contractor.

[kingcook]

You missed Mal's point though, in the transaction flow it is the Agency that is paid by Clientco for the whole job, who then subcontracts to the contractor.

If that were the case, then the agency would be called the contractor, and we'd all be called subcontractors.

[JamJarST]

If that were the case, then the agency would be called the contractor, and we'd all be called subcontractors.

Well technically that is exactly what is going on.

[Joeman]

IMO it should not concern you. Are you happy with what the agency offered?

Do you not hagle your agent down? Once you have a job offer, always let the agent think you would accept if the rate was just a little higher. they make a lot of noise and moan a bit, but generally you can squeeze their commission to get a better day rate...
If you didn't do this at the start of the contract make sure you do it at renewal time. the client might not have budget for a rate rise, but the agent can always take a commission cut

[TheFaQQer]

Do you not hagle your agent down?

Never. I set a rate that I'll work at - they pay me that rate. What they make off the deal, I really don't care.