Agent increasing their cut

**Mordac** · 9 March 2006, 15:38

Yes, they can do what they like. So can you. Including not signing it. You won't be able to go direct, because there will be a clause in your contract saying you can't go direct (or through another agency) for x months (usually 3, 6 or 12).

You could always let the client know what is happening, and see if they want to lean on the agency. If the client wants to keep you, they can suggest that the agency reduce its margin or the client will use another agency in future. Which won't help you, of course, for a few months anyway.

Oh, go on, name and shame the agency, just for a giggle.

**VectraMan** · 9 March 2006, 15:40

Originally posted by aheerms

And what's stopping me leaving them and working directly for the client?

Your agreement with the agent, and the agents agreement with the client. Shower of bastards springs to mind.

It's a business deal. Everyone is free to negotiate a higher fee, nobody has to accept it. I'd walk away. The question is do you want to keep the job enough to agree to the cut, or does the client want to keep you enough that they'll pay more?

**threaded** · 9 March 2006, 15:46

Not nice, but you can like, left foot, right foot, it's called walking don't you know.

**BobTheCrate** · 9 March 2006, 15:50

First of all name and shame the agency.

If the contract is up for renewal then yes they can make virtually any stipulation they think you might accept.

Assuming you're opted out of the agency regs I don't think you can go direct without either you or the client paying the agent a one off fee.

My suggestion also is to inform the client that the agency are increasing their commission to 33% and as a result will be be cutting your remuneration significantly. Basically see if the client can exert any pressure on the agent.

Don't arm twist your client into doing this - see if they're prepared to voluntarily talk to the agent.

If neither client nor agent will budge, it's the old pays yer money and takes yer choice scenario. Accept or reject the renewal.

If you reject the renewal it would certainly expose any bluffs.

ps: If you reject their renewal always make a point of writing to the MD of the agency explaining politely why you're not renewing. You'd be amazed how many rec-cons act outside of their agency's usual policy. i.e a bad rec-con working for an otherwise good agency.

**thunderlizard** · 9 March 2006, 16:01

Of course they're allowed to do it. We have free trade in this country (mostly). It's all part of the game unfortunately. Your options are to take it, turn it down, or suggest an alternative.

Definitely make sure the client knows. If their middle-man is hacking off their suppliers, it's in their interests to know.
The client will have one of 2 reactions: (A) That's terrible: we'll see what we can do to help; (B) We don't care.
Probably (A). If you and the client join forces, and you stick to your guns, you'll usually be able to squeeze the agent to a figure that doesn't take the mick.

If (B), no worries, but it does mean you're on your own. You seem to know the agent's cut, so you're in a position of power already. Sort out some other contract options, decide what rate you really need to persuade you to extend, and talk to the agent accordingly.

**aheerms** · 9 March 2006, 16:59

Thanks for the responses.

I'll name the agency in due course but i don't think it would appropriate at this stage.

The client is aware of the situation, it was the client who laid the figures out in front of me and also suggested i leave the agency and join them direct.

I'm not sure why, but the client doesn't feel he's in a position to push the agency back on their increased cut so it looks like it's time to walk unfortunately.

The only way around it i can think of is setting up a new LTD, closing the old one and joining the Client directly. Wouldn't this get around the clause in the existing contract?

**Dundeegeorge** · 9 March 2006, 17:10

Well you could invoice through another company

Originally posted by aheerms

Thanks for the responses.

I'll name the agency in due course but i don't think it would appropriate at this stage.

The client is aware of the situation, it was the client who laid the figures out in front of me and also suggested i leave the agency and join them direct.

I'm not sure why, but the client doesn't feel he's in a position to push the agency back on their increased cut so it looks like it's time to walk unfortunately.

The only way around it i can think of is setting up a new LTD, closing the old one and joining the Client directly. Wouldn't this get around the clause in the existing contract?

I'll do it for you, for, say, 33%
Seriously good luck

**VectraMan** · 9 March 2006, 17:43

Originally posted by aheerms

The client is aware of the situation, it was the client who laid the figures out in front of me and also suggested i leave the agency and join them direct.

The client is the one that's more likely to get sued (although that doesn't mean you won't as well), but if you're both prepared for the risk...

**zathras** · 9 March 2006, 17:56

Originally posted by aheerms

Hi all,

My contract is up for renewal shortly and i've just learned that my rate is going to cut. This is due to the agents increasing their % Cut. The increase is over 33% from their previous cut.

Are they allowed to do this? And what's stopping me leaving them and working directly for the client?

this may be harsh but is perfectly legal. Everyone is perfectly within their rights to make as much or pay as much as they wish.

You could equally not sign up the renewal. If you want to stay I would have a word in the Shell Like of the client saying you would like to continue to provide services but unfortunatly the reduction in the rate you are getting makes that impossible. Since in all likelyhood the client is paying the same (or they did it to the client saying you wanted to increase) this is likely to make the client place a nice big rocket under said agency.

Agent increasing their cut