Reply to: Purpose built platform to find contracts

[Paralytic]

Do you think this business model could potentially work with smaller clients who don't mind about the extra leg work (who would otherwise use indeed or another job board) and don't have a PSL?

Yes, there is potentially a niche there. Whether you can capitalise on that, with the level of understanding you have of the industry, and the business acumen you possess, is the real question you should be asking yourself.

[Cirrus]

I can't tell if you're being sarcastic...

Apologies. I'm not. I've known several people who have done well or very well by entering the world of recruitment agency.

I can kind of see your thinking: why not cut out the middle man? I confess I don't know why, but that just never flies. You'd have to ask customers to find out why that might be the case

[eek]

no he isn't

He isn't - the finance bit is easy if you don't mind swallowing the fees.

[BR14]

no he isn't

[GhostofTarbera]

I can't tell if you're being sarcastic...

He is


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[JacobMason]

Absolutely. Hundreds of people do it. A bloke in a pub wanted me to get involved a while back. I said no because of the huge cashflow risk ( as discussed above). He went ahead and made at least one million quid, probably several.

I can't tell if you're being sarcastic...

[northernladuk]

Do you think this business model could potentially work with smaller clients who don't mind about the extra leg work (who would otherwise use indeed or another job board) and don't have a PSL?

I'm sure there are one or two of those around.

[Cirrus]

Do you think this business model could potentially work with smaller clients who don't mind about the extra leg work (who would otherwise use indeed or another job board) and don't have a PSL?

Absolutely. Hundreds of people do it. A bloke in a pub wanted me to get involved a while back. I said no because of the huge cashflow risk ( as discussed above). He went ahead and made at least one million quid, probably several.

[JacobMason]

Do you think this business model could potentially work with smaller clients who don't mind about the extra leg work (who would otherwise use indeed or another job board) and don't have a PSL?

[LondonManc]

It sounds like you still don’t get it - you’re looking at things from a contractors point of view. The agency is not providing a service to you, they are providing it to the client. You don’t pay the agency, the client does. You are part of the service they are delivering to the client.

As others have said, finds out what the agency does for the client, why the client likes that model, what the agency does for them, and then see where you might be able to disrupt that model.

It’ll take more than a single page website with some woolly words.

Correct.

The position is very simple.

The client has the money and the role.
Let's ignore the minor issue of the client getting the requirements spec right to begin with and assume they know who they need skills/experience wise.
They *should* want to pay the correct amount to get the most suitable candidate to do the work.
The frustration is that the agency will want to place a good enough candidate who offers the best margin to them, who is not necessarily the most suitable candidate. Unless it's a transparent percentage, there is room for them to fleece the client and present a £350/day worth candidate as a £500/day contractor and get away with trousering £150/day plus their generous low-level £40/day margin.

[Paralytic]

During my short time as a contractor I have seen how useless and annoying recruiters can be and dislike the hoops we jump through to get work. I thought that the solution was to close the gap between the contractor and client, but in an effort to monetize the most obvious would be to operate like an agency which now doesn't sound like the easiest method. Maybe this approach is not the solution and instead we need to go back to the drawing board.

It sounds like you still don’t get it - you’re looking at things from a contractors point of view. The agency is not providing a service to you, they are providing it to the client. You don’t pay the agency, the client does. You are part of the service they are delivering to the client.

As others have said, finds out what the agency does for the client, why the client likes that model, what the agency does for them, and then see where you might be able to disrupt that model.

It’ll take more than a single page website with some woolly words.

[JacobMason]

That's a very different world though. And not exactly helpful to you.


One of the reasons agencies exist is clients often have strict purchasing rules.
I have a client who'd happily pay me direct, but as a 3 month contract would exceed £25k they have to go out to tender. That's a pain for them, and it also means I might not even get the work. That's why they'll get an agency, or two, through the tender process so they can onboard people quickly.

There's lots of problems with your idea, but I'll be brave and suggest that the fundamental problem is that you don't know what an agency's business actually is. You've just not been contracting long enough, and never been an agent.
To become a disruptor in a sector, you MUST understand that sector in great detail.
Why not get a job as a pimp for a while? See it from the other side and then see if your business will float.

You're not wrong, it seems as though we simplified what an agency actually provides.

Appreciate the insight you've provided, thank you.

[JacobMason]

I came here after only investing a small amount of time to see if it is a viable idea or what we could do to make it that. You've all provided great feedback and criticism, even if some came across more hostile than others.

During my short time as a contractor I have seen how useless and annoying recruiters can be and dislike the hoops we jump through to get work. I thought that the solution was to close the gap between the contractor and client, but in an effort to monetize the most obvious would be to operate like an agency which now doesn't sound like the easiest method. Maybe this approach is not the solution and instead we need to go back to the drawing board.

[Lance]

Fair point, but imagine a world where all contractors were hired directly by the client, that would still happen.

Thank you for your criticism.

That's a very different world though. And not exactly helpful to you.


One of the reasons agencies exist is clients often have strict purchasing rules.
I have a client who'd happily pay me direct, but as a 3 month contract would exceed £25k they have to go out to tender. That's a pain for them, and it also means I might not even get the work. That's why they'll get an agency, or two, through the tender process so they can onboard people quickly.

There's lots of problems with your idea, but I'll be brave and suggest that the fundamental problem is that you don't know what an agency's business actually is. You've just not been contracting long enough, and never been an agent.
To become a disruptor in a sector, you MUST understand that sector in great detail.
Why not get a job as a pimp for a while? See it from the other side and then see if your business will float.

[JacobMason]

Aye, good luck with that. Up to 90 day terms? FRO...

You are dreaming. You seem to think that you can just sit there and let the money roll in with little to no risk. I'll say this once more for the cheap seats: YOU ARE DREAMING.

You are offering no benefit to the contractor that they cannot get on better terms elsewhere.

Stop trolling us and go and open a chip shop.

Fair point, but imagine a world where all contractors were hired directly by the client, that would still happen.

Thank you for your criticism.