First timer - Dual agents for same contract - how to remove one?

[MyUserName]

I think you have muddled the picture for yourself with too much information.

How your agent does their business and what their margins are etc is none of your business.

Do not worry about what others are getting, even if they are telling you the truth you do not have the complete picture. They might have specialist skills, be inside IR35 so have wrangled more etc.

You were happy with your rate, what has changed? Others tell you that they are on more? So what? Someone somewhere always will be. Just think about your rate, your expenses, your business etc.

You want to increase your rate than go ahead and ask the agency. Do not bluff as they will smell it a mile off and will not take you seriously. You mention that you are new to contracting? Any reason why the agency will not just terminate you and pick from some other experienced contractors who are not going to cause hassle?

[Wanderer]

Your threat to walk if they don't agree won't carry much weight if you're in a role where they can easily replace you (with someone less troublesome ) so factor that into your decision whether to make that threat or not.

The agency that is taking the biggest chunk of the commission is unlikely to get a new candidate into the client because they aren't on the preferred suppliers list so it's not a certainly that a contractor leaving would be immediately replaced by the same agency or even on the same fat margin.

How your agent does their business and what their margins are etc is none of your business.

Finding out that some agency is taking a fat markup will always result in me going back to the negotiating table. That's just good business, I don't understand why people are so shy about this. In this situation there is at least some room to negotiate a cut in the agents margin here if not remove them completely.

[BlasterBates]

Your only real choice is either accept or go else where. Why don't you just pitch your wares and see if you can get a higher rate.

As others say you shouldn't decide based on what the guy next to you is earning or what the agency margin is, it's what you can charge on the open market. If you're underpaid you'll have a new contract in a jiffy.

Agency B was charging a low margin but it is obviously Agency A doing all the marketing otherwise you'd be direct with agency B.

I had a long contract where the agency took 30% but it was the best rate I've ever had. I've subsequently had a contract with an agency on about 5% and I was on the lowest rate ever.

There is often little correlation between margin and your rate. What contractors forget is that the client too can take a chunk out of your income.

The key is what is the best offer you can get on the market, not which agent takes the lowest margin. The most active agents who are marketing themselves will be taking higher margins.

[yozdag]

A quick update...

It ended up being a lot less painful that I expected. A cordial chat followed by an agreed lump sum figure and I effectively bought out the 'handcuff' clause to allow me to contract with the upper agency at a much higher rate.

All in all a good result for everyone.

[malvolio]

A quick update...

It ended up being a lot less painful that I expected. A cordial chat followed by an agreed lump sum figure and I effectively bought out the 'handcuff' clause to allow me to contract with the upper agency at a much higher rate.

All in all a good result for everyone.

Well done. But how long do you have to work at the higher rate before you recover the lump sum?

[jimbo45]

Hi there
answering a post by saying the guy was a bit dumb doesn't help - the OP did say he's new to contracting.

Unfortunately more and more work particularly with some of the bigger clients is done via consultancy firms like Cap gemini, Accenture, PWC etc and you as a contractor get called by an agency who supplies you to one of these consultancies who then supply you to THEIR end client - so TWO sets of snouts in the trough before you get your money.

It seems quite hard to actually get a contract with the end client without having to have one of these "consultancy firms" in the middle - although it is possible.

What you should avoid at all costs though those rare occasions where there is even a 3rd agency in the chain - happens but is rare -- this can crop up if an agency supplying a contractor to a consultancy has been suddenly let down.

The take on all this stuff is you shouldn't worry what another person is getting paid on the gig you are currently signed up to -- if you agreed the rate that's it -- you could however if the end client wants to keep you re-negotiate the rate -- although the consultancy in the middle won't budge usually that's not your problem -- any side deals they have with the consultancy is THEIR problem -- if they really make a song and dance about paying a higher rate and you KNOW others at the SAME site are getting paid more then I'd leave anyway as it shows you are more marketable.

That said - I really try and avoid contracts that go via Consultancies -- as these people - unlike an end client - have no regard for their contractors -- I know one guy recently who had signed up for a 6 month gig over in Holland through a large International Computing firm as the "intermediate" consultancy -- and on the Friday before he was due to start on the Monday they just cancelled the contract - even though the poor guy had booked ferries and Hotels for the first week. He'd of course turned down a couple of 3 month gigs thinking (quite naturally) that a 6 month deal was better than a 3 month deal.

You should always ask your agency if the contract is through a consultancy or with an end client before deciding on whether to accept the gig.

Cheers
jimbo

[northernladuk]

Hi there
answering a post by saying the guy was a bit dumb doesn't help - the OP did say he's new to contracting.

Still possible to ask a dumb question even if you are new.

HTH

[Wanderer]

Still possible to ask a dumb question even if you are new.

There are no dumb questions, only dumb answers.

[TheFaQQer]

There are no dumb questions

You should work with my client. They'll show you how wrong that statement is.

[northernladuk]

You should work with my client. They'll show you how wrong that statement is.

You are on top form today TF!