Reply to: Agency commission

[TykeMerc]

Yes, I have had an agency come back and tell me the rate has gone UP, post interview - and the contract length at the same time.
I was quite happy to accept the adjustment!

Has happened to me too, the Agent was up front, told me he was on a fixed margin and that the client had a larger budget available off than they originally planned as they needed one less on the headcount, was a surprise to both of us.

[dmini]

Yes, I have had an agency come back and tell me the rate has gone UP, post interview - and the contract length at the same time.
I was quite happy to accept the adjustment!

[d000hg]

Which is fine if you are on a fixed margin, as you say that you are. The more you can get for the contractor, the better off you are.

If, however, the client has given you a budget of £500 a day total to them, and you found a contractor who would work for £300 a day, are you really telling us that you would say "oh, no - that's too low, we'll pay you £450 a day instead"???

Which seems more normal. Every agent I've spoken to about contracts I am properly interested in has shown room for movement in rate. Not massively... maybe 10% more on what they say. Alternatively when I mention a rate first, every time it just happens that the client is hoping to spend the same +/- £25/day... obviously I need to revise my strategy.

[TheFaQQer]

Ermm, actually yeah. I am on pre agreed fixed margin's i.e. everyone on a particular PSL is charging out 15% (which has been stipulated by the end client). If I know the role is paying £500 per day and your looking £425 per day, then it is in both our interests that you get £500 per day.

Which is fine if you are on a fixed margin, as you say that you are. The more you can get for the contractor, the better off you are.

If, however, the client has given you a budget of £500 a day total to them, and you found a contractor who would work for £300 a day, are you really telling us that you would say "oh, no - that's too low, we'll pay you £450 a day instead"???

[Another Dodgy Agent]

Let's turn it around... if you were the agency and both your client and contractor were happy, would you really turn down all that money? Would you tell the contractor "actually, I know you want £425 but let's make it £500"? Really?

Ermm, actually yeah. I am on pre agreed fixed margin's i.e. everyone on a particular PSL is charging out 15% (which has been stipulated by the end client). If I know the role is paying £500 per day and your looking £425 per day, then it is in both our interests that you get £500 per day.

[d000hg]

The agent's role is to get their client to pay what they consider fair, and the contractor to accept a rate he considers fair. They make their living from whatever the gap is. It's probably your responsibility to push hard on the agent to get the highest rate. I am new to that side of things... but it does seem you can push really quite hard without getting laughed out of the door.

Let's turn it around... if you were the agency and both your client and contractor were happy, would you really turn down all that money? Would you tell the contractor "actually, I know you want £425 but let's make it £500"? Really?

[bennyhedgehog]

WHS.

I only accept a rate that I am happy with - after that, I don't care what the agent is taking. The problem here is that the OP took a rate that he wasn't happy with, and relied on the agent not making the most of it.

Not at all ... You are mis-reading surely, there is a difference between making the most of a situation and taking the client for a ride. Capitalism you may wish to call it... I call it rank opportunism. I was happy to take the original rate, but there is a disparity in the client and contractor expectations when the agent is creaming quite so much, don't you think?

Not all clients are savvy of it contracting and rates and as such rely on the relationship with the agent to ensure they get the required skillset for the right price, plus the usual 10 odd percent... In my experience 15+ is cheeky and 40+ is plain short-sighted and piss-taking. Isn't it?

[BrilloPad]

I've just asked my agent to take out a clause in a pre-interview agreement that states:

if they arrange an interview and I don't attend, I owe them 2000 Euros (don't like that one, but can accept).

AND

if I attend and interview and they offer me the role BUT I turn it down I owe them 2000 Euros.

Did they ask you to sign that?

I have never heard of a pre-interview agreement before.....

[TheFaQQer]

The agent will get as much from the client as possible.
You will get as much from the agent as possible.
Maybe the agent smelled your desperation, this is just capitalism in action.

WHS.

I only accept a rate that I am happy with - after that, I don't care what the agent is taking. The problem here is that the OP took a rate that he wasn't happy with, and relied on the agent not making the most of it.

[TheFaQQer]

I've just asked my agent to take out a clause in a pre-interview agreement that states:

if they arrange an interview and I don't attend, I owe them 2000 Euros (don't like that one, but can accept).

AND

if I attend and interview and they offer me the role BUT I turn it down I owe them 2000 Euros.

I hope you got "If I attend an interview, and I'm completely unsuitable for the role but have been put forward for it anyway, they owe you 5000 Euros" included.

[bennyhedgehog]

the agency margin is v.high, but what's the point of mentioning it on the board if you don't name the agent?

I'd love to name and shame them, but not everything is entirely sorted as yet and I am trying to be careful - this is anew forum to me, I don't know who is on here.

[engfran]

I've just asked my agent to take out a clause in a pre-interview agreement that states:

if they arrange an interview and I don't attend, I owe them 2000 Euros (don't like that one, but can accept).

AND

if I attend and interview and they offer me the role BUT I turn it down I owe them 2000 Euros.

[stillooking]

the agency margin is v.high, but what's the point of mentioning it on the board if you don't name the agent?

[Lewis]

Hi...

new to forum, I sought out a forum precisely to try to find out what other contractors thoughts and exepriences are in relation to this.

I cannot go into too much detail... but suffice to say started a new contract recently at a well below my "usual rate" purely in fear of not having something to see me through Xmas and into the New Year.

Once in the position I noticed a few bits and pieces with the contract itself (organisationally) weren't 100% as usual, there is usually something or other but this one seemed to have lots of "oddness"... I've got over 10 years as a contractor, so like to think I've come across most things at one time or another.

Anyway... after a bit of creeping around (not the best way to endear yourself at the beginning of a new contract) I have found out the Agent had originally set themselves up for 44% commission of the client's fee. I have, in the past, baulked at what I thought was quite a high one of 13%... apparently in the past this particular agent has in fact gone even higher (50% and beyond?)... so, anyone else come across this sort of "shyster" (only word I can think for it)? I also think there could well be a "back-hander" involved somewhere along the line, but not entirely sure where. Anyone come across similar. The Agency involved, who I simply cannot name at the moment - but who knows in future, is the largest advertiser on the largest "Jobsite" in the country... so very worrying!?

All turned out ok in the end and getting soemthing more like my usual rate with no actual rate increase to the client. Cheers for your thoughts.

Exactly the same thing happened to me after the dot com bubble burst . Was persuaded to take a low rate as market was bad. Told verbally agency cut was 10%. Turns out agency was just creaming a massive amount. It came out by chance and client was furious. I got a call from agent saying "well done, good work, they want to increase your rate and back date it to the start of the contract" ... little f&&cker. As it happens I left a month later anyway and got back to my usual rate. I now ask in writing for the agency cut and will walk if I think it is too high - and I don't subscribe to any of that "agency cut is none of your business" rubbish.

[d000hg]

The agent will get as much from the client as possible.
You will get as much from the agent as possible.
Maybe the agent smelled your desperation, this is just capitalism in action.