Reply to: When to move into contracting?

[SueEllen]

Which seems a ridiculous statement; if you're brought in as a specialist on, say, £800/day, then they'll be billing you out at a minimum of £1200/day. If they can't make money on that, they've got process issues.

As an extra, if you're offered commission on upselling, then there'd be more incentive to do that as well as doing your job.

There is a difference between making £50 a day on someone if your main business is traditional consultancy than if your main business is an agency.

Traditional consultancies have higher overheads as they have employees doing not only sales and admin functions but those doing technical functions and support staff e.g. HR for them.

[Lance]

Which seems a ridiculous statement; if you're brought in as a specialist on, say, £800/day, then they'll be billing you out at a minimum of £1200/day. If they can't make money on that, they've got process issues.

Idiot issues more like.

Not long since I was on 500pd, next tier up paid 635pd, next tier up paid 800pd and final client paid 1200 pd.
It was the consultancy paying 800 and charging 1200 that had the biggest issue with their 'expensive resource'.

They lost money on the programme due to commercial naivety and not having the balls to argue with the customer. But that was permie salespeople only interested in the next commission sale (they'd already had their commission on the loss making programme).

[MrMarkyMark]

Which seems a ridiculous statement; if you're brought in as a specialist on, say, £800/day, then they'll be billing you out at a minimum of £1200/day. If they can't make money on that, they've got process issues.

As an extra, if you're offered commission on upselling, then there'd be more incentive to do that as well as doing your job.

On my last consultancy gig, not with one of the big 5, I might add, I know the consultancy was only making £100 PD, out of me. In fact on extension the partner offered a colleague and I an extra £50 PD for extending, without being asked.

[LondonManc]

I've contracted for three of the big five consultancies in the last 10 years.

Feedback after the gig is done? "We always need people with your skills and experience on our projects, but we never seem to make any money from you.."

So it can be done. And correctly.

Which seems a ridiculous statement; if you're brought in as a specialist on, say, £800/day, then they'll be billing you out at a minimum of £1200/day. If they can't make money on that, they've got process issues.

As an extra, if you're offered commission on upselling, then there'd be more incentive to do that as well as doing your job.

[squarepeg]

Exactly my point. OP may be an expert in negotiating with pimps, I'm thinking not. Hence "fleeced".

Been direct a few times, thanks for asking.

qh

Fair enough.

[quackhandle]

No, they won't. You will get paid the rate you negotiated. The rest is the agent's money and none of your business. If you don't like paying for the service provided by the agent, go direct and see how far you get.

Exactly my point. OP may be an expert in negotiating with pimps, I'm thinking not. Hence "fleeced".

Been direct a few times, thanks for asking.

qh

[eek]

I think you have to be in a position and industry where you are customer facing and talking to the end user directly... Which means if you techie you need to pick your skillset carefully...

[blackeye]

+1, I'm going to be out in 3 years max, house will be paid off, a decent wedge in the pension and for the kids, I'm going to apply for a shelf stacking job for pocket money at my local Tesco's then, hope HMRC will love subsidising me with Tax Credits for the next 20 years

It's not dying, its evolving.

Some jobs, like devs and testers are being off shored. However there are still some roles that the western world still can do better. In 10 years contractors will probably still be around, but only in the areas which demand native english skills and the required soft skills to work with management.

I would agree that the days of 'techie' contacting is coming to an end though.

[SlipTheJab]

I'd say about 20 years ago. It's dying mate and Brexit it will make it worse.

+1, I'm going to be out in 3 years max, house will be paid off, a decent wedge in the pension and for the kids, I'm going to apply for a shelf stacking job for pocket money at my local Tesco's then, hope HMRC will love subsidising me with Tax Credits for the next 20 years

[SussexSeagull]

The beginning of the end of contracting started many years ago, but perhaps for new wannabe contactors £250/day is sufficient for them to sell their dreams for.

With stagnant salaries £250 a day is probably no bad thing for quite a few people.

[ChimpMaster]

Maybe that's what they are worth? You can still earn £700+ per day if you keep on learning and keep adding new skills to your CV. Heck, even £1000+ per day is possible, even outside of the banking sector. But your skills have to be in high demand and short supply.

Been there, done it, doing it. Perhaps it's just me becoming cynical and pessimistic in my old age. Every time you become successful in a successful field, you will eventually be vilified by either the public, the media or the government.

Frankly I've almost had enough, though fortunately I'm almost done.

[squarepeg]

Also the agents will fleece you blind.

No, they won't. You will get paid the rate you negotiated. The rest is the agent's money and none of your business. If you don't like paying for the service provided by the agent, go direct and see how far you get.

[quackhandle]

I started back in early 2003 and even then other contractors had said I'd missed the 'golden years'.

To OP, go ahead and start now, there is no one stopping you but you need to know how to run a limited company, IR35, VAT, CT, expenses, having a good CV (you may fall down on this due to lack of exp) and a million other things. And dealing with our friend Hector (HMRC).

Also the agents will fleece you blind.

Good Luck.

qh

[nomadd]

The consultancy companies will still be charging people out at big rates per day so there will always be some people who find a way to get a piece of that action

I've contracted for three of the big five consultancies in the last 10 years.

Feedback after the gig is done? "We always need people with your skills and experience on our projects, but we never seem to make any money from you.."

So it can be done. And correctly.

[northernladuk]

The best time to start is when you feel ready.

Not so sure I agree, particularly with the evidence on here. A student fresh out of university thinking the world owes them a living will think they are ready.

Research in to the market and a pragmatic view on whether you have the skills to make it in that market long term would be better. That and looking at your finances to make sure you are covered should the worst happen. Then maybe you have a view on whether you are ready.