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

[yasockie]

I have the ability to go direct with a client.
Going through an agency they have offered me 500pd, how much might the agency cut be in this case?
How much should ask going directly, 550?

[BrilloPad]

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

[SteelyDan]

I think it differs from agency to agency, but anywhere between 10-15-20% mark-up. Some are greedy effers and others not as greedy effers.

If you have the client's ear, can't you ask what the agency are charging him/her and then give a competitive quote and see if he goes with it?

[malvolio]

I have the ability to go direct with a client.
Going through an agency they have offered me 500pd, how much might the agency cut be in this case?
How much should ask going directly, 550?

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

But to answer your question, if you're on £500 that's likely equivalent to 85% of what the agency would be billing. So split the differnce and £550 is a sensible offer. Bear in mind you won't be on a weekly payment though...

[CheeseSlice]

I have the ability to go direct with a client.
Going through an agency they have offered me 500pd, how much might the agency cut be in this case?
How much should ask going directly, 550?

Who offered you 500 per day? the client or agent?
So many factors would determine how much you can be paid... clients budget, clients expectation of a discount for taking you on direct, whether you have worked for the client before, etc, etc.

[SteelyDan]

Going through an agency they have offered me 500pd, how much might the agency cut be in this case?

I'm reading that the agency have offered the £500pd

Bear in mind you won't be on a weekly payment though... is an astute observation and worthy of serious consideration.

[yasockie]

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???

[Dearnla]

Other than the ClientCo's contract with the Agency almost certainly prevents them going direct to you, as would their HR department. 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??).

[craig1]

Bear in mind you won't be on a weekly payment though...

Not necessarily. I'm going direct now with a huge company and they're doing weekly payment with 10 day terms. The reason they insisted on a minimum of 10 day terms is that they only do a payment run once a week and that means they can guarantee to meet the terms and pay me on time.

We also cut out the agent from my last time here and they've given me every penny of the rate they paid the agency. I only started at that as a negotiation point, fully expecting them to negotiate me down to split the difference.

Everything's negotiable!

[kingcook]

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??).

IR35 has nothing to do with the client, regardless of whether you go direct or via an agent.