Outrageous Agency Commissions

Re: commision

Why does this bother you, ?

You signed the dotted line for a price you were happy with.

The agent has a contract with the client and I presume the Client is happy paying so much.

In my view all parties happy, what is the problem...

Once youve been there 6 months ask for a pay rise, if the client thinks your worth it, they will either pay up or cut the margin made by the agent.

commision calc

The commission charged is only calculable in one way
It must be the percentage of what the client pays that is kept by the agent.
i.e.
(charge out rate - rate paid)/charged out rate

e.g. 10-5/10 *100
=50%

Agent takes 50% of the money charged to the client



Below is the commission expressed as a percentage of the rate paid to the contractor (this is not the commission).

(charged out rate - rate paid)/rate paid

10-5/5*100= 100%

If the commission was really 100% the contractor would get nothing because the agent would take all of the £10 not half of it!!!

BTW This agency are rip off merchants

Re: Who is the biggest idiot...

A not so dim prawn! I would hate to have to negitiate with you DP

Re: Who is the biggest idiot...

I had a gig last week where an agency, which now has an 'IT consultancy' arm which bids for work, wanted to bid for a broadband project.

They had no broadband expertise and so asked me to be their guru to help them win the bid. They asked me how much I would charge for that particular project and I gave a rate of £500 per day.

However, when we arrived at the client to deliver a presentation I was giving a doc by them which detailed the proposal, costs, etc, and discovered, to my shock, that they had put me down at £870 per day.

Now, were they being greedy? Am I charging myself out at too little? Did they bump up my fee to nearer what they know the client would pay or were they just trying to make a fat commission out of me????

They did not win the work and I do wonder whether they were simply charging too much? Then again, knowing the nature of such work, perhaps neither of us were charging enough? Who knows!

Who is the biggest idiot...

...The client for paying 25% more than the cost of obtaining the skills they require, or the contractor for working at a rate 25% below what the market is willing to pay.

Who can say what a fair margin is?

Is it fair that Sainsbury's buy carrots for 10p/kg and charge the customers 40p/kg?

Live and learn. Find out the margins before you sign and negotiate hard at every contract start or renewal.

Push the client to pressurise the agency margins.

Now stop yer moaning and act like a real business in future.

Margin

devide the difference between the buy and sell price by the the sell price and times by 100.
To the moaning contractor, you run your own company, employ a sales/marketing person, after all its a real company right? Or employ freelance ones, ( like the agencies you use ) but please stop moaning about your overheads.

How does everyone work out the margin percentage?

I always thought it was set as a percentage of the gross amount, which would make the above example 20% and not 25%???

Still far too high, but hey.... it's not me

Can you give me the name of the RC? I want to offer him/her a job.

You chose to sign the contract.

the time to whinge was BEFORE you signed

Why are people such dicks?

I am not complaining that the agency wants to make a profit. 25% is fine for the first say 6 months of the contract. but if this contract goes on for 2 years then I think it is excessive, expecially when the contract is not continuous work. I still have to submit proposals and have spent a few days working for free so far.

worst thing I have ever heard

I can not believe that an agency would have the thieving mentality to try and make £230 a week, thats nearly a thousand pounds a month! Do not deal with them, name and shame! Disgusting rip off if you ask me. You should wright to FRES and your MP about this company. You should also try your Euro MP. Disgusting capitalism at its worst! Just to think that this firm may have helped you to earn over £50,000 and want payment from thier customer, amazing. Errr, I think I'm going mad. Do not deal with Agencies, they all try and make a profit and they are not even any good at that at the moment. Stay unemployed is my advice, that way no thieving company can make a profit out of you. Good luck.

Rip up the contract and go direct with the client.

Has anyone else experienced agent charging excessive fees?

I was not particularily looking for work, but got a call from an agent one day with a contract. The rate was average at £27 per hour, and since I had nothing else on at the moment I agreed.

Later, I found out that the agent is billing the client £33.75 meaning a 25% fee. This would be fine for a short term contract, but the client is talking about providing work over the next couple of years (or more).

Has anyone else experienced such rates? What rates are other contractors being charged? Is there anything that I can do about it?