First Time Contracting - Found job without agent

[Wanderer]

A client who uses an agency is dealing with you direct? Why would they do that when they are paying the agent to deal with it all, particularly with you never contracting before. In all your negotiation with the client they have never mentioned an agent? I hope they haven't given you a rate yet becuase that is going to be a problem when the agent tries to offer you less etc.

I don't know about jimakos, but in my situation I got the interview lined up through a contact at the client company, we negotiated a rate and I accepted the job. They then told me I would have to work through an agency (one of their preferred suppliers) because they didn't want to engage me direct.

They didn't say why they wouldn't engage me direct but no doubt it has something to do with me potentially claiming employment rights and/or the procurement department not wanting to deal with more suppliers than they have to. The client pay the agency a small percentage for their services, I still get the rate we agreed.

[jimakos]

Thank you all for the info.

[blacjac]

Is this a realistic situation or are you just making up a possible scenario? A client who uses an agency is dealing with you direct? Why would they do that when they are paying the agent to deal with it all, particularly with you never contracting before. In all your negotiation with the client they have never mentioned an agent? I hope they haven't given you a rate yet becuase that is going to be a problem when the agent tries to offer you less etc.

I've had this scenario before, I guy I contracted with once called me up out of the blue to say his current client were looking. I did a telephone interview, got the gig, negotiated the rate and then the client said they would prefer me to go through their PSL agency and pay the agency fees on top of my rate.
I got weekly payments the agency got 15% for doing bugger all but it wasn't a cut of my rate so I didn't GAS.
Nothing unusual at all.

[The Agents View]

I can possibly help here - I work for the recruitment arm of a FTSE 100 business, and do benefit from economies of scale in this area, so have a degree of flexibility - I don't benefit from payrollers unless they hit a minimum margin level (10%), just thought it might help.

I'm meant to charge 10% for this kind of service - but given that you're new to the contracting game, and a member on here, I'm happy to do this for you at 7% of the total charge rate (ie margin), on a weekly payment basis.

Drop me a PM if I can help.


Mods: This is not a plug for business - I do not personally benefit from anything worth less than 10% to the business - I simply wish to be of assistance - if you feel this message inappropriate, please feel free to remove.

[northernladuk]

Assuming I have a contract ready but client requires the use of an agent rather than dealing with me directly for one reason or another... how would I go about this?

Are agents available to represent people like me, and if so what kind of percentage cut am I looking at for a "first" contract?

I believe I have done most of the hard work, so would it be unreasonable to expect a lower cut by an agent?

Any advice appreciated.

Is this a realistic situation or are you just making up a possible scenario? A client who uses an agency is dealing with you direct? Why would they do that when they are paying the agent to deal with it all, particularly with you never contracting before. In all your negotiation with the client they have never mentioned an agent? I hope they haven't given you a rate yet becuase that is going to be a problem when the agent tries to offer you less etc.

[NotAllThere]

You might like to tell the client that if they take you direct, then you're rate will be £x per hour, but if you have to go through an agency, it'll have to be £x+ per hour. Depends on your relationship with the client and how much they need you though. And how much x is, of course.

There are agencies that will pay you on receipt of invoice. Maybe if you indicate what industry sector you're in, we could recommend some agencies to approach. If the client won't pay the extra for the agency, I'd start negotiation at about 5%, and immediate payment. Currently, having been forced through an agency, it's 5% + 21 days payment. For a contract I gained through an agency, they got 15%, and I got paid immediately. A lot depends on their cashflow and stability.

Otherwise, phone around and go for the best deal you can. If you have an agency name, search these forums to see if they have a good or bad reputation. Personally, I'd avoid any of the S3 group of agencies.

It's not just the margin they'll benefit from, but also the sales lead -they'll now have an 'in' to your client. So don't forget that in negotiation.

[Wanderer]

Assuming I have a contract ready but client requires the use of an agent rather than dealing with me directly for one reason or another... how would I go about this?

The client will refer you to their preferred agency and the agency will send you a contract...

Are agents available to represent people like me, and if so what kind of percentage cut am I looking at for a "first" contract? I believe I have done most of the hard work, so would it be unreasonable to expect a lower cut by an agent?

Absolutely. Agents will happily take a cut of your money for doing bugger all. I am working on a contract that I found direct and they asked me to go through an agent. They pay the agent about 10% on top of the rate I negotiated - I think that's reasonable.

Try and negotiate a reasonable payment time, 14 days would be good. If they make it 30 day payment terms then make sure you can invoice weekly (not monthly) or you will be waiting 2 months for the first fees to arrive.

Don't "opt out" of the agency regulations, there is no point.

Make sure the agency offers you an IR35 proof contract.

Read the contract and tell them to remove the BS restrictions like saying you can't work for the client through any other agency (even though you got the job direct).

Good luck!

[jimakos]

Assuming I have a contract ready but client requires the use of an agent rather than dealing with me directly for one reason or another... how would I go about this?

Are agents available to represent people like me, and if so what kind of percentage cut am I looking at for a "first" contract?

I believe I have done most of the hard work, so would it be unreasonable to expect a lower cut by an agent?

Any advice appreciated.