Reply to: Taking more than 30% commission

[guanfree]

Jeez. What planet do you people live on? If the agency took a more reasonable industry standard percentage of say 15% then the poster can get additional money, which of course he is interested in. Even if I was happy with my rate I would not want the agency to take 30% (because basically I can take my skills elsewhere). I cannot understand when people say "it's none of your business". In the past at renewal I have negotiated the agent's rate down so I can get more, clearly it has something to do with me! I always make a point of getting the agents rate in writing as well. Because in the past I have been told verbally they are taking 10% to discover it is 30%. I was NOT happy with the rate but felt being in contract was more important as it was a really bad time for contracts. It turns out the agency was also lying to the client as well so when by chance it all came out the agent got into huge trouble all round. I actually got the 10% backdated to the start of the contract on the insistance of the client.

You didn't get ripped off. You got exactly what you agreed to in your contract. The contract was with the agent. How much the agent was getting paid was beteen the client and the agent. Do you some research and get an understanding of the contractor/agent/client relationship.

Slackbloke I completelly agree with you that I agree that on the contract;
Well after reading all of the related post, It is clear I did not explain myself properly at all, my issue is that when I was negotiating with them my rate, they told me that: if they would increase my rate they will not make any money with me ie they were paying me the maximum that they could afford... Thats why my dissapointment after I found out that they getting a commission over 30% which is hardly no making any money is it???

[macca1971]

Hm.

Hmmm. No connection with you, right?

The issued raised was 30% margins by agencies.......

The site has absolutely nothing to do with me........but I think it is a bloody good idea.....The stat site lead me to this and I am amazed that they have not come here themselves. I am perplexed as how it would work in the long run because they dont charge a fee and you contact companies directly...

There is no advertising on the site.....

Anyone else heard of this lot........

[expat]

Why pay the middle man?
I have been introduced to the newly launched site XXXXXXX, that enables you to contact local employers, and local employers to contact you.

Simply put, XXXXXXX(www.xxxxxxx.com) (WHICH IS FREE) lets you find employers near you! ...
Why not check it out and then we will not have anymore 30% fees !!!!!


no agencies – no fees.:yay:

Hm.

Came across an article in the Telegraph saying there was a website called www.xxxxxxx.com which ....

Hmmm. No connection with you, right?

[NotAllThere]

OK, I'll rephrase that:

Also a low margin means that there is a higher risk that the agency your dealing with will fail, is more likely to have poor payment terms etc.

hth

[DaveB]

Also a low margin means that the agency is more at risk of failing, is more likely to have poor payment terms etc.

Not neccecerily. Large agencies with sole supplier agreements, or with multiple bodies on the client site, typically charge the client much lower rates. Often less than 10%, lowest I've seen was 5%. The agency had over 100 contractors with the client, was in no financial trouble and always payed on time. Interestingly enough they also used PCG approved contracts, which was nice.

[macca1971]

Why pay the middle man?
I have been introduced to the newly launched site ZubedJobs, that enables you to contact local employers, and local employers to contact you.

Simply put, ZubedJobs (www.zubedjobs.com) (WHICH IS FREE) lets you find employers near you! It gives you access to previously inaccessible data such as the technologies and skills used within these organisations, in addition to directly advertised vacancies, both permanent and contract.

- Map companies by the skills they employ, even if they’re not advertising a current position
- Map companies that have current vacancies for your skills
- Apply directly to employers

THINK ABOUT IT GUYS “…if all work seekers uploaded their information, asked friends colleagues and clients to do the same, just think how quickly the ‘middle man’ could be bypassed, meaning more money in your pocket!”

Why not check it out and then we will not have anymore 30% fees !!!!!


no agencies – no fees.:yay:

[NotAllThere]

Many clients have no idea what you're getting. If they're happy with the rate they're paying, and you're happy with the rate you're getting, then it is true that the agency margin is irrelevant.

There are times when it is relevant though. For example:

You are on £500, and client is paying £800. There's another contractor on site, who's roughly the same ability as you, who's also being paid £500. But the client is only paying £700. If it comes to a choice between you and the other contractor, it'll be you who gets the shove.

Client announces across the board 10% rate cut. They now pay £720 for you, and £630 for the other guy. Which of you has a better negotiating position with the agency to stay on or close to your rate of £500?

Client has a new project, and wants the more senior guy to be involved with it. That's you, cos they pay more.

Knowing the margin is very valuable business information. You should try very hard to get that information. It is directly in your interest. But find it out before you sign the contract. Otherwise, just put up and shut up.

Also a low margin means that the agency is more at risk of failing, is more likely to have poor payment terms etc.

[slackbloke]

However as has been said before on other threads, the client knows that they are paying the agency more than the contractor gets. If the contractor goes direct the client would take this into account and reduce the amount they are willing to pay the contractor.

Yes, agree with both points, but not quite sure what point you are making in relation to agent taking a big % cut?

[blacjac]

I appreciate both sides of the argument...but...

It does affect you in that if you're being charged at a high rate - it will decrease your chances of an extension.

Once you've signed, there's nothing much you can do about it - until extension time - assuming the client have got the cash to keep paying an inflated rate.

I've had to put up with this before - as long as you're happy with rate, and don't want to stay there years it's fine....just an annoyance.

surely the same argument that applies to the contractor applies to the clientco, if they agreed to the rate initially they were happy with it (presumably if it was too high, they would not have paid it).

However as has been said before on other threads, the client knows that they are paying the agency more than the contractor gets. If the contractor goes direct the client would take this into account and reduce the amount they are willing to pay the contractor.

[slackbloke]

I appreciate both sides of the argument...but...

It does affect you in that if you're being charged at a high rate - it will decrease your chances of an extension.

Once you've signed, there's nothing much you can do about it - until extension time - assuming the client have got the cash to keep paying an inflated rate.

I've had to put up with this before - as long as you're happy with rate, and don't want to stay there years it's fine....just an annoyance.

surely the same argument that applies to the contractor applies to the clientco, if they agreed to the rate initially they were happy with it (presumably if it was too high, they would not have paid it).

[Muttley08]

I appreciate both sides of the argument...but...

It does affect you in that if you're being charged at a high rate - it will decrease your chances of an extension.

Once you've signed, there's nothing much you can do about it - until extension time - assuming the client have got the cash to keep paying an inflated rate.

I've had to put up with this before - as long as you're happy with rate, and don't want to stay there years it's fine....just an annoyance.

[Lewis]

I don't give a sh*t what the agency makes out the deal, I signed a deal with them for the money I was happy with, what they make is no concern to me.

That's cool. You do it your way and I'll do it mine. Just attempting to providing a balanced opinion for newbies on the board.

[Lewis]

Been contracting for 17 years and never been able to get the info up front from and agency. Frequently found out by backhanded methods of course.

I guess it depends on the agents you deal with. I'm in investment banking in London dealing usually with big agencies. I just ask and they tell me. It's never been the slightest bit of an issue. I can't explain why they won't tell you.

[AlfredJPruffock]

Morning,

Just a quick note to advise you that I had the unfortunated luck to start contrating for <name removed> and after a while by pure conincidence I found out that they were taking more than 30% commission from me (I though it would not exceed the 20%) I confronted them and they denied it...after all we did not reached any consensus and I left the contract lossing a sustancial amount of money.

So my piece of advise is if you have to work with them /sign a contract make sure that you clear visibility with regards commission/ margins oterwise you might get ripp off like a I did.

regards

It seems, a tad, that your are throwing your toys out the pram ?

Normally I establish the rate offered is the market rate - at least a rate that Im happyu with

If later I gain an extension due to merit then there is scope of negotiating a bigger slice of the Pie.

Whatever you do - good luck !

[thunderlizard]

well, just because somebody's happy with £100, that doesn't stop them from being happier with £110.