Agency Commission Rates

[Zippy]

40% is excessive (by about 20%). I suggest you spend your remaining weeks looking for another contract, to help you in the bargaining process. Mention to the pimp (sorry, agent) that you are looking for a 20% increase for a certain extension (and be prepared for a lot of bleating that 'the client won't pay that' - feck 'em).
Finally, the agent may brazen it out . I appreciate you can't discuss your rate with your client, but leaving your invoice lying around on the clients desk - to take a hypothetical example - may help to oil the wheels of negotiation.

Good luck!

[MarillionFan]

Hang on a sec.

The agency didn't find the contract but asked you to use an agency. Fine. No issue there. Admins fees are 8-10%, 15% maximum. But.

You must have agreed a fee with the client direct. If the agent then added 40% to that then the client is a mug. If you dropped your rate, then you're a mug and together the whole thing smells fishy.

Please elaborate.

[AtW]

40% is excessive (by about 20%)

You mean 40% is 200% too much?

[Paddy]

I've just gone back contracting after 10 years on the payroll and am interested to find out what the average agency cut of the deal is. The agent didn't find me the job but the company insisted they only deal with agents and recommended one to me. All the commercials were negotiated through this agent and I was far from happy with the final offer but didn't really have a choice so took the job.

Because I'm the project manager I now know what I'm being charged out at and found that the agent is taking 40% - YES 40% of the fee!! I'm due to be offerred a 12 month contract extension in the next few weeks and would like to change to an agent who, shall we say, is more reasonable.

Does anyone know what an average cut is and can anyone recommend an agent who would be happy to take a reasonable cut for not having to do any searching for me!

Thanks

Bad move especially from someone who has contracted previously. You should negotiate the rate with the client first and then arrange an agent. The last time I did this the agent took 7.5% which was OK as I was paid at the end of each week while he invoiced the client monthly.

[MarillionFan]

You mean 40% is 200% too much?

She means 32% is Ok.

I'll let you correct me on this. ;-)

[kaiser78]

I've just gone back contracting after 10 years on the payroll and am interested to find out what the average agency cut of the deal is. The agent didn't find me the job but the company insisted they only deal with agents and recommended one to me. All the commercials were negotiated through this agent and I was far from happy with the final offer but didn't really have a choice so took the job.

Because I'm the project manager I now know what I'm being charged out at and found that the agent is taking 40% - YES 40% of the fee!! I'm due to be offerred a 12 month contract extension in the next few weeks and would like to change to an agent who, shall we say, is more reasonable.

Does anyone know what an average cut is and can anyone recommend an agent who would be happy to take a reasonable cut for not having to do any searching for me!

Thanks

As long as you are happy with the rate you are on just turn a blind in what the agent's cut is. Some things in life you cannot change so don't worry about them.

[suityou01]

Just take it up the Gary

Hear hear

[Flyer]

Well thanks for all your responses but despite the suggestions of what I should have done I still don't have a recommendation for a decent agent so I can put this right.

If you're happy with your agent and they're not taking 40% please forward me their contact details so I can talk to them. I have a 12 month contract lined up so this is a win/win situation. Thanks guys, I appreciate your help.

[realityhack]

Well thanks for all your responses but despite the suggestions of what I should have done I still don't have a recommendation for a decent agent so I can put this right.

If you're happy with your agent and they're not taking 40% please forward me their contact details so I can talk to them. I have a 12 month contract lined up so this is a win/win situation. Thanks guys, I appreciate your help.

Doesn't your client have a payroll agency (like Reed) where the margin's something like 5%? If you're on very good terms with the client I'd angle for going directly through their payroll agency.

[KentPhilip]

Rather than asking on here, why don't you try emailing a few agents at random asking whether they would payroll you at 7%.

They're not going to turn down free money are they?