Agency on PSL - margins?

[Scrag Meister]

Roughly what kind of margins are the agencies on big IBanks PSLs working with?

I read something about those being 'razor thin'. Does anyone know if they are usually like 7%/12%/15%?

Would help me in negotiating for the best rate I think I can pull.

Contract 1 9%
Contract 2 11%
Contract 3 Not sure but probably lower than the last 2 as I came direct and ClientCo thrust the agent in the mix. They offer practically zero value add, and pay me when they get paid by ClientCo, but has run very smoothly for 16 months so far, so can't complain.

All IB

[Old Greg]

Why do you think the margin that the agent gets from a PSL, has anything to do with:

A) You

B) Maximising your rate.

Assuming the rate is fixed, then it won't make a jot of difference to your rate, what the agents margin is. Even if the rate is not fixed, frankly, it also has nothing to do with you - your contract is with the agent - negotiate your rate with the agent to the level you want it - what they then make, is neither here nor there.

I negotiated my current rate inclusive of cut and then found an agency with 5% margin.

[Wanderer]

I read something about those being 'razor thin'. Does anyone know if they are usually like 7%/12%/15%?

I've had an agent on a PSL who was taking 7%. I guess it depends on the payment terms but there is no reason why the agent couldn't be paid on 30 day terms and pass that straight on to the contractor with little or no factoring.

[CaptRand]

Why do you think the margin that the agent gets from a PSL, has anything to do with:

A) You

B) Maximising your rate.

Assuming the rate is fixed, then it won't make a jot of difference to your rate, what the agents margin is. Even if the rate is not fixed, frankly, it also has nothing to do with you - your contract is with the agent - negotiate your rate with the agent to the level you want it - what they then make, is neither here nor there.

Its really hard to fix the rate when you are out of jobs for few months. And once the agent knows it he/she will try to reduce your rate(increase his margin). I have an agent who calls almost everyweek just to check my status and offer me a contract, each time with a lower rate. I wish I could block his number. I am not generalizing here at least 10% of the calls I get are genuine.

Normally if the role is exclusive agents will have fixed margin, otherwise it all depends on how he/she talks to you. Their bonus depends on that.

[The Agents View]

Roughly what kind of margins are the agencies on big IBanks PSLs working with?

I read something about those being 'razor thin'. Does anyone know if they are usually like 7%/12%/15%?

Would help me in negotiating for the best rate I think I can pull.

Why do you think the margin that the agent gets from a PSL, has anything to do with:

A) You

B) Maximising your rate.

Assuming the rate is fixed, then it won't make a jot of difference to your rate, what the agents margin is. Even if the rate is not fixed, frankly, it also has nothing to do with you - your contract is with the agent - negotiate your rate with the agent to the level you want it - what they then make, is neither here nor there.

[malvolio]

Not at a bank, but one agency I worked through was on 3.5 %. I've seen the agency->client invoices - was surprised it was so thin (didn't really believe agency when he told me).

Doable but only if they have a cast-iron guarantee of payment from the client (no chance of factoring at that cost) and have minimal sales effort to support. Chances are they aren't really an agency as much as an outsourced HR team.

[Normie]

Worked with one that was on 5%, which is just about the bottom sustainable level, more usually they are between 7% and 10%

Not at a bank, but one agency I worked through was on 3.5 %. I've seen the agency->client invoices - was suprised it was so thin (didn't really believe agency when he told me).

[malvolio]

Roughly what kind of margins are the agencies on big IBanks PSLs working with?

I read something about those being 'razor thin'. Does anyone know if they are usually like 7%/12%/15%?

Would help me in negotiating for the best rate I think I can pull.

Worked with one that was on 5%, which is just about the bottom sustainable level, more usually they are between 7% and 10%

[Optimus Prime]

Roughly what kind of margins are the agencies on big IBanks PSLs working with?

I read something about those being 'razor thin'. Does anyone know if they are usually like 7%/12%/15%?

Would help me in negotiating for the best rate I think I can pull.