Reply to: Agent takes 33%

[t0bytoo]

So this is what happened....

CONTRACTOR,

I understand your point. Quite frankly I was expecting/assuming XXX to
lower
the rate when you started in June but they kept it as was. (It is a
much
long story that I will not go into)
I have no problem playing catch you with you as you proposed.

Let me know what you think.

AGENT

-----Original Message-----
HI AGENT

I got your call this morning and am guessing that it
is about the contract extension.

I'll be happy to extend for the month of August, but I
have an issue about the rate. Quite by chance I
learned the rate that you are billing me out for.
(consultant rates are on display in the lotus notes
database that is used for time tracking). There seems
to be plenty of room to give me the rate that I
initially asked for.

I propose that we make an adjustment for August to a
rate of XXX. This would mean that I get the difference
between the YYY that I asked for and the ZZZ that you
said was available.

What do you think?

CONTRACTOR

Nice to encounter an agent with a, ahem, er, 'conscience'.

[WageSlave]

Never mind, Dodgy. I'm sure you could give the mouthwash to Julie

Re: Or

So, Dodgy, if you want to staff my new PMO, you better bring one big bottle of mouth wash when you visit me

I never tout for business on this website wageslave, as a point of principle :rollin

Re: Or

What always puzzles me is why so many contractors actually want to be wined and dined by their agents. I cannot think of anything worse than spending valuable socialising time with the type of people who work for recruitment agencies.

And I can't think of anything worse than spending my time dealing with lying mockney git agents, but as a management type I put business the agent's way; that business goes to the agent who has impressed me the most. A little wine and lunch at a classy London establishment helps.

So, Dodgy, if you want to staff my new PMO, you better bring one big bottle of mouth wash when you visit me :rollin

whining and dining

Gawd yes. Rec cons, due to their gift of the gab, tend to be entertaining lunch companions but I don't think I'd want to be around most of them for much longer than that.

Re: Or

The wining and dining also puzzles me ! All the effort of hiding mutual loathing. A group of us cured one agent who kept turning up on site by cleaning out a chinese's £80 bottles of champagne, we did his budget in one go and never saw him again.

Re: Or

but as they haven't wined and dined me, it's the last time they'll make money from me.

What always puzzles me is why so many contractors actually want to be wined and dined by their agents. I cannot think of anything worse than spending valuable socialising time with the type of people who work for recruitment agencies.

Re: Or

>You could sort all this out before you start the contract,

I found out the Agent's rate by chance.

>or alternatively find your own contract and don't use an agent, like a real business

What? Like schmoozing with clients and not being able to take off whenever I feel like it? Yikes. No.

Re: Or

>I don't actually see how a US contract relates to the UK?
>The formalities are different.

The IT contracting business in the US works exactly the same way as it does in the UK.

I have a UK passport and US residency, and work corp to corp, legally, in either place, whenever I feel like it.

Re: Or

I don't actually see how a US contract relates to the UK?

The formalities are different.

Are you a Visa holder or did the company have to sponsor you?

Are you one of these pseudo employee contractors or a genuine Corp to Corp contractor? If the former then don't forget that out of the agent's cut he has to pay your 'employee' benefits and costs (and TBH I'm suprised he can do that out of a 33% margin) and if it's the latter then you're lucky to have this status via an agency, most C2C people find their own work.

tim

Or

You could sort all this out before you start the contract, or alternatively find your own contract and don't use an agent, like a real business

One place I worked there were two contractors getting 20% of what the agency was paid.

When client discovered this they terminated both both contractors and black listed the agency.

Small wonder the agency had a clause to specify that rates should not be discussed with clients...

Agents cut

I wouldn't say nowt mate, US managers are like mafiosi, incredibly friendly to your face, whilst arranging for your "disappearance" behind your back.

You didn't see any confidential information did you. If your happy with the rate keep your mouth shut, and be thankful your agent isn't running some sort of protection racket as a sideline.

"Glad to say that I am one of the higher earners" - interesting psychology there. In those circumstances I'd be disappointed to find that out, because it suggests the likelihood of increases is lower.

Otherwise I'd say your point of view is similar to mine. You don't have a moral objection to the agent's margin, but all the same if there's that much cash to play with I'd sure want more of it to be going in my pocket. Best plan is probably to tell the client about the fat margin so you can both do the 2 way squeeze routine next time you're negotiating. (Nearly) everybody wins.

The highest margin I've ever heard of was 75%

Incredible.

These days 7% - 20% is the usual range.

Your client still thinks Y2K is on and India doesn't have any programmers then?

I would "ask" your agent to organise a regular, no expense spared piss up at a nice hotel for all the hard working contractors, after mentioning you know the cut they are taking. :evil