Reply to: Agencies Commission

[GWilliy]

Personnaly I think if anyones being short changed it's the Client, not you.

You were happy with the rate when you signed the contract, but it's almost impossible for the client to know what he's getting for his money!

Basically you sold yourself too cheap & it's people like you that drive our rates down!! (assuming your worth an extra £100 a day)

I don't like the idea of Agents getting more than 25% it makes them try harder to screw our market rates down, 12% to 15% seems reasonable, but it's not up to us as the AGENTS POSTING ON THIS CONTRACTORS FORUM will happily tell you.

Contractors should vote with their feet & have faith in their abilitys when faced with rates that are that much below market rates.

If you want revenge simply leave your invoice face up on the desk and call the PM over to discuss something trivial, chances are he'll know what the client is paying the Agency & will later recomend dumping em to earn brownie points.

Only problem is he may think he can get other contractors at your rubbish rates!

[expat]

Just wanted to know what's the maximum an agency can deduct off your daily rate for commission.

What's the maximum a supermarket can deduct off the price of a bag of Granny Smiths for commission?

As Archangel says, it's not commission, it's profit, and that's their business.

Commission is where you commission somebody to do something: if you engage an agent to find you a contract, then their commission will be ..... whatever you agreed with them.

But if it is the agent who engages you to fulfil the contract that they have made with the client, then it is the agent who has commissioned you. So the question is, what's the maximum a contractor can deduct off the agent's rate for commission? And the answer is, whatever they agreed.


PS Happy Birthday DA. This one's for you.

[Liability]

Are you happy with your rate? That is all that matters. Now you know the agency is getting £155 you appear to be greedy? Natural reaction.

Of course there is no way in hell the agency deserves that £155 a day as its excessive - BUT they were just smarter in getting the deal

Its business.

[Bluebird]

yes because the end client is being ripped off . I like a decent rate for myself but hate to think a company I`m working for is paying too much to an agency that really does bugger all once the contract is setup.

"rip off" is a moot point.

The client is happy, and til you find out the price so are you, and the agency is definitely happy.

[SuperZ]

£155 does seem excessive, but I guess it depends what you're daily rate is. If you've negotiated a daily rate, and are happy with it, then does it really matter what the agency are creaming off the top?

yes because the end client is being ripped off . I like a decent rate for myself but hate to think a company I`m working for is paying too much to an agency that really does bugger all once the contract is setup.

[Bluebird]

Is this the most common way for an agency to operate? Should I expect the rate I'm discussing with an agent to include their margin or would I need to deduct it afterwards?
I'm at this stage now, have specified a rate but agency is already trying to renegotiate the rate on behalf of the client (will admit I'm a newbie). Thankfully due to the grey matter between my ears I've posponed agreeing the rate until the contract has at least been won.

The agent will discuss a rate with you that they are willing to pay you, they have already had a discussion with the client as to how much the client will pay the agency.

Some agencies are ok and will offer you 85 -90% of their fee, others will screw you over.

These days with contracts sparce, more and more agencies are trying to take bigger margins off fewer contracts - it's the only way they can stay in business.

The best tactics are - sign up, get on site - find out the client-agency rate, then at renewal discuss an uplift with the agent.

Don't forget for the agent 10% of the fee or 50% of the fee - it's still profit for them at renewal time...

[CheeseSlice]

You accepted the day rate that the agency offered initially didn't you? So that must have been OK then, so why start barking now? Agree it's a bit galling but consider it a lesson learned in always asking the agency what their margin is.

Is this the most common way for an agency to operate? Should I expect the rate I'm discussing with an agent to include their margin or would I need to deduct it afterwards?
I'm at this stage now, have specified a rate but agency is already trying to renegotiate the rate on behalf of the client (will admit I'm a newbie). Thankfully due to the grey matter between my ears I've posponed agreeing the rate until the contract has at least been won.

[kookachoo]

Danger money in Bournemouth? Are those old biddies getting moody then?

It's the danger money to be taking the train to Reading and back every day.... Bournemouth is bustling with beauties - don't forget the University and the drunk students who are happy with a drink and a packet of crisps for a cheap date!

[Svalbaard]

Just wanted to know what's the maximum an agency can deduct off your daily rate for commision.

I've just found out that my agency is taking £155 per day for me, i think this is too much and want to know if i have any legal rights to cut it down?

You accepted the day rate that the agency offered initially didn't you? So that must have been OK then, so why start barking now? Agree it's a bit galling but consider it a lesson learned in always asking the agency what their margin is.

[Jubber]

I wouldn't mind another £50 a day danger money, it would make the train journey alot more bareable!

Danger money in Bournemouth? Are those old biddies getting moody then?

[kookachoo]

I wouldn't mind another £50 a day danger money, it would make the train journey alot more bareable!

[BrowneIssue]

Lucky for me the gamble paid off.

That wasn't luck. It was inside information, research, consideration, balls and action.

Well done.

[beemarman]

Update on this

I gambled and called the agency telling them that i've offered another job, paying £50 more per day and i wanted to know if they would beat the offer.

They said yes and agreed to give me the £50 extra that i asked for.


Lucky for me the gamble paid off.

[blacjac]

Just wanted to know what's the maximum an agency can deduct off your daily rate for commision.

I've just found out that my agency is taking £155 per day for me, i think this is too much and want to know if i have any legal rights to cut it down?

I know i don't have any rights to how much they make off me, but it's annoying knowing that i do all the hard work for them to just make all that money off me.

[Mustang]

it's annoying knowing that i do all the hard work for them to just make all that money off me.

Welcome to contracting!! That's why there is more to setting rates then just saying yes!