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

[d000hg]

Sure, one of the parts of business is taking risks. But by not caring about agents taking the p155 is suicide.

As a business it is NOT about whether the agent's cut is "fair", or if they are "taking the piss". It is about maximising your profit and negotiating the best deal possible with the agent, plain & simple.

[bobspud]

Agency has offered me 500 indeed.
I have PI insurance anyway, a sensible warchest, so I really don't see a point in not going directly???

It really does depend on your agency. For instance. I set up an entire deal with a large outsourcer for me and 5 other guys to go and do you work for them. I could have gone direct. but then Everyone would be waiting for 3 months every time they put an invoice in + the time it would take for expenses on travel. War chests don't last very long when you start booking long hotel stays and flights. I got a friend to factor the payments and pay early for 6%

My other customer allows associates to go direct as well apart from the downside that one of the girls on my project waited 6 months for her first pay check because the clowns in Accounts lost the first invoice (attached to an email!!!) and then insisted on 3 months to pay when she asked where the money was...

So sometimes its a good idea to let the agency take some risk...

[TheFaQQer]

Agency has offered me 500 indeed.
I have PI insurance anyway, a sensible warchest, so I really don't see a point in not going directly???

What is it about having a war chest and insurance that you think is even remotely relevant to whether you go direct or not?

Two questions that you'd need answering before you consider going direct are (1) are the client interested in taking you on direct? and (2) is there anything in the contract between client and agency which prevents them from doing so?

Without knowing the answer to both of those questions, I don't see how you can go any further - knowing what you want to charge the client is irrelevant if they aren't interested / able to take you direct.

[d000hg]

What is it about having a war chest and insurance that you think is even remotely relevant to whether you go direct or not?

The war-chest is pretty obvious; you might have to wait several months before the first payment turns up, and generally need a big buffer to cover client payment delays.