Agency Commission Rates

[tvr450]

Generic Software

I am looking into this now - changing agent to reduce the fees.

I asked Generic Software Consultants who I have worked through before and they said they would do payroll only for 4%.

[Scrag Meister]

Make sure there are no clauses about changing agents with same client in the contract.

GL with sorting it out. Very frustrating.

I'd open some negotiations with the agent, explaing what you have told us, that you found the role and they are taking 40% which is wholly unreasonable considering that they didn't do the role finding leg work.

[lukemg]

Just so there is no confusion, unless you are working in a field picking cabbages for NMW, you are getting royally f***ed over.
IF the agent did all the work and got you the job, they should take an absolute MAX of 20% for very quick payment (15 is about par, I consider anything over 10 to be robbery and yes it DOES matter what they get).
For a job handed on a plate, I have been told on a couple of occasions by agents that you can get this done for 5% no problem (gives agency an in with the client as a sweetener).
They may have a PSL which will push you in the direction of certain agents but if not, start phoning until you find the cheapest - As long as you don't have a restricted clause in contract with current agency.
If you have to stay with current nobbers, play hard ball for a 30% rise and if you need to have a quiet word with the client if they aren't aware of this markup, they will surely be p***ed off.

[IR35 Avoider]

The place where I work requires all contractors to use a particular agency, their preferred supplier. The last time I checked, which was years ago, the agent was getting about 6%. It was 6% of the total contractor payroll, i.e it wasn't negotiated on a per-contractor basis.

[caspercat1]

40% is taking the Mick but then I have seen 50%+ and had immense joy of renegotiating this contract for a Financial Services Client and pinned them down to 20% and even that is bit high but given they were supplying accountants predominately ok.

Depend on market position agency some will change 22% but most around 15% and the small ones will go down to 10% or single digits to get the business and usually at the expense the contractor with extended payment terms.

Bottom line is ask them to be upfront with you regarding margin to client & always check the payment terms, if there any good it is in the interest to be transparent so that you both get the contract.

[tvr450]

A guy here had a problem with an agent taking 40% and they refused to negociate. He worked out that the contract and the rule about working for the same client for 6 months after the contract ended were with his LTD company - not with him. He closed down that LTD and started a new one - there were of course some costs but it worked massively in his favour.

[DodgyAgent]

A guy here had a problem with an agent taking 40% and they refused to negociate. He worked out that the contract and the rule about working for the same client for 6 months after the contract ended were with his LTD company - not with him. He closed down that LTD and started a new one - there were of course some costs but it worked massively in his favour.

I take it you are not a rugby player?