Reply to: very tricky situation...!!!

[vadhert]

hmmmm..really....??

Step 1) Client pays agent 100%.

Step 2) Agent then pays you 80%.

HTH

[northernladuk]

Indeed. Also understand the agents situation. His lowest percentage will depend on a number of factors like number of contractors he has at client, what your day rate is etc to expect 10% to be the defecto standard is wrong. An agent probably can't make enough money if he's got a single contractor at a client on 250 a day on 10%.

If you understand what the agents lowest margins to make it worthwhile for him you are in a good place to negotiate. If it's not worth his time it will go no where.

[Darren_Test]

Its not a tricky situation at all really.

Pimp sent you the wrong contract.

Remember you get a percentage of their business, not the other way round.

However I would ask for a rate increase anyway

hmmmm..really....??

[Darren_Test]

I would say that it depends on how good your relationship is with the client. I have had very good, open working relationships with previous clients and in one case I actually walked into the client director's office and negotiated a split of the agency commission cut.

Ultimately, if the client relationship is strong, and they need/want you to stay, their word will carry far more weight than yours if they were to negotiate with the agency. Especially if the client takes on a number of contractors, i.e. provides good business for the agency.

A win/win situation, for example, would be to have the client knock back the agency to 10% commission on renewal, and then have the saving split between you and the client.

I have a good relationship I believe, though its my first contract with them. they are keen to get me on board soon. Client Manager keeps in touch with me and update PO progress etc. rather doing it through the agent. If I couldn't get a direct answer from agents I usually call client manager as well.

[Darren_Test]

Your contract is with the agency. He's the one that's paying you. Getting the client involved in your issues with the agent rarely end well... And not knowing how to exploit a situation where you know the agents cut is too high... Really?

sure mate... I know what to exploit...but always good to listen to guys here - if there is a tried and trusted formula to get pimp on your feet!!....who knows...experts here could make the difference.!!

[Darren_Test]

As I said you have these conversations with the agent.

Thanks

[vadhert]

Its not a tricky situation at all really.

Pimp sent you the wrong contract.

Remember you get a percentage of their business, not the other way round.

However I would ask for a rate increase anyway

[ChimpMaster]

Your contract is with the agency. He's the one that's paying you. Getting the client involved in your issues with the agent rarely end well... And not knowing how to exploit a situation where you know the agents cut is too high... Really?

I would say that it depends on how good your relationship is with the client. I have had very good, open working relationships with previous clients and in one case I actually walked into the client director's office and negotiated a split of the agency commission cut.

Ultimately, if the client relationship is strong, and they need/want you to stay, their word will carry far more weight than yours if they were to negotiate with the agency. Especially if the client takes on a number of contractors, i.e. provides good business for the agency.

A win/win situation, for example, would be to have the client knock back the agency to 10% commission on renewal, and then have the saving split between you and the client.

[northernladuk]

Your contract is with the agency. He's the one that's paying you. Getting the client involved in your issues with the agent rarely end well... And not knowing how to exploit a situation where you know the agents cut is too high... Really?

[MrMarkyMark]

I am expecting a call from client manager soon...Can I raise this with him..??? after all pimp claims to have 'open book policy' with client. So......

As I said you have these conversations with the agent.

[Darren_Test]

I am expecting a call from client manager soon...Can I raise this with him..??? after all pimp claims to have 'open book policy' with client. So......

[Darren_Test]

if it's a renewal, which you seem to be implying, then I'd argue the case that the pimp didn't have to do any work for this contract, so you want to reduce his share......but they won't be happy so be prepared to play hardball and walk or take the current contract if you have to

Its not a renewal...new contract, I took £100 cut in rate from last one!!.

[MrMarkyMark]

FTFY

For lessons in finishing contracts early, involuntarily, contact Suity. HTH.

[moneymoney]

tricky situation...but how could I exploit it...???

I was waiting to sign new contract, but by mistake pimp to client contract mailed to me instead of my ltd company contract!!. Now I can see around 20% margin is taken on my contract. When I asked agency they said they have 'open book' policy with client. I have direct contact with client manager and talked to him directly many times when I couldn't get prompt response from the pimp recently. He too calls me if any response needed urgently.

What should I do...??? How could I exploit this situation best way to my advantage ..?? Any one faced similar sitn..? What all are my options here...?

I understand 20% is at the higher end of commission...?? We are talking here about a global telecom client and pimps also claims to be a 'global enterprise'.

if it's a renewal, which you seem to be implying, then I'd argue the case that the pimp didn't have to do any work for this contract, so you want to reduce his share......but they won't be happy so be prepared to play hardball and walk or take the current contract if you have to

[SlipTheJab]

+1, Tell the pimp you're happy with 10% otherwise you will flounce

For lessons in flouncing contact Suity. HTH.