Going Direct

[XLMonkey]

I am currently speaking to a PM at a client I have worked for previously about a potential new gig.
I have never worked direct before, but as there is no agent involved at this stage, should I suggest to the PM that I go direct ??

What are the pros and cons of going direct ??

Pros
- Direct control over the relationship,
- easier to negotiate true business to business terms with the end-client
- if properly negotiated, the rate is usually better
- it is much easier to grow the business (e.g. sell in other contractors) if you are on direct business to business terms.

Cons
- You need to be on the ball and have done your homework (you should have your draft contract, ts and cs etc ready before they ask, you should know what payment terms are appropriate, you should have a robust argument to justify your rate, you need proper business cards, address etc)
- clients will normally want to take all/most of the markup that an agent would have charged - you need to explain to them that going direct incurs additional administration costs to you
- depending on the client, you may need to do credit checks etc to make sure that they will pay up
- never underestimate what a pain in the ass it can be dealing with the purchasing department and getting your bills paid. Some clients are easy, many are not.

but if you can do it, it is always worth it.

[rootsnall]

I would find out if anybody else is being paid direct by that client otherwise you may find its a lot of hastle to get a signed contract and actually get paid if there is no existing process in place, especially if its a large Co. I had quite a few direct contracts in the 90s but eventually gave up the battle, the last time it was possible I ended up through an agent on 8% and also got any exclusion clauses taken out of the contract. I think a lot of Co's are also now scared off direct contracts by the PAYE and employee rights issues it potentially throws up.

[errorista]

The bank will probably put you with a 'pet' agency who will get a very small commission.

So the answer is go direct. They wont like you bringing a bloodsucker into the deal.

2c

[scriptfromscratch]

careful tho, they could just find someone else now they know there is an opening

[Sockpuppet]

Thats not a problem - it was four years ago.

Also, its a bank - they should be OK paying shouldn't they ??

The bigger the company the harder it is to get the money out of them in my experiance. More people to lose the paperwork etc.

I'd speak to the PM and see if he is direct and see how its going. You'll have to be set up as a supplier which can usually be some hassle.

Why not find out who the banks current agents are and say "i have this gig ... its mine ****ers! .... I'll pay you £10/day to invoice through you guys".

[G8_Summit]

also depends on how long ago you worked for them thru the agency

Thats not a problem - it was four years ago.

Also, its a bank - they should be OK paying shouldn't they ??

[scriptfromscratch]

also depends on how long ago you worked for them thru the agency

[Mustang]

Depends on the client.

The only time I went direct, I ended up with payment hassles and had to take them to court (search for the thread). If the client is reputable this shouldn't happen.
The benefit of an agency is payment brokering to ensure the contractor gets paid on time.
The main thing is getting a better rate by cutting out the middle man - I am sure the more experienced guys on here can give you a better opinion.

[G8_Summit]

I am currently speaking to a PM at a client I have worked for previously about a potential new gig.
I have never worked direct before, but as there is no agent involved at this stage, should I suggest to the PM that I go direct ??

What are the pros and cons of going direct ??