agent's cut

[BlasterBates]

There is no "fair" rate, just "competitive" rates. For some reason contractors get hung up about the agents cut, I mean there's a free market out there; if its possible for an agent to make a profit on less than another agent then he'll do it and take the business from them.

If I get 6 offers from agents and one's taking a 50% greater cut but offering me 80% more than the others, then ****, I'll bite his hand off.

[Bagpuss]

Just saw in another thread here that some agents (didn't say who) don't get any cut from their agency unless the agency is getting more than 14%.

How many agencies work like this?

An agent I knew (a one-man-band) had no such problems and said he would be happy with 10% but could often get 20 or even 25%.

So when I'm negotiating next time and I try to get the agent to reveal how much he/she's getting %-wise, what would be a fair % to consider as average?

I posted that. the Agent in question became a friend. That was compnay policy for that agency to encourage the agent to acheive a big cut. I expect that type of incentive is industry wide. Personally I think 15% or less is fair, they do usually have a usefull function to perform. I doubt rates would reach the heights they have if contractors were selling themselves!
If the contract is renewed the cut should fall (after all it's usually the contractor that secures the renewal.

[insight14]

I think anything under 20% is fine, but others might feel differently.

My other half works at a multinational who uses lots of contractors. They only have 2 agency suppliers, but in return for this "loyalty" the agencies are told their margin is 7%, on pain of losing their preferred supplier status.

Conversely, I've seen an agent take 75% (in an extreme case). I've also seen a few 50%, especially with young contractors. Desktop support staff being charged at £24/hr and being paid £12.

[ahardy66]

Just saw in another thread here that some agents (didn't say who) don't get any cut from their agency unless the agency is getting more than 14%.

How many agencies work like this?

An agent I knew (a one-man-band) had no such problems and said he would be happy with 10% but could often get 20 or even 25%.

So when I'm negotiating next time and I try to get the agent to reveal how much he/she's getting %-wise, what would be a fair % to consider as average?