Reply to: Day Rate!

[rurffy]

Is that really true, NorthernLady?

Just went through your posts and it seems all you really do is worry about grammatical error when there isnt any ..

"Its not Mandatory to post comments on here you know.."

[flipFlop]

Just flipflop being a stupid troll. This type of comment is all he ever posts.

Is that really true, NorthernLady?

[northernladuk]

The original post was not French, Spanish, or whatever, it was and still is English ! what you on about mate?

Just flipflop being a stupid troll. This type of comment is all he ever posts.

[SueEllen]

The original post was not French, Spanish, or whatever, it was and still is English ! what you on about mate?

The "question" doesn't make sense as it the only question is would you rant or chill after a factual statement.

If you asked "The agent's margin is 25% is that too much?" you would have got better answers.

I've worked through consultancies and their margins i.e. charge to the client is much more. However they still pay me market rate.

If you know the business models of agents with multiple clients and consultancies you know they spend a lot of money (as time is money) on trying to win new business. You are welcome to do this yourself and deal with clients directly.

[rurffy]

Can you re-post your question such that it makes sense?

The original post was not French, Spanish, or whatever, it was and still is English ! what you on about mate?

[flipFlop]

Conversation with a friend. …

Agent pays £300 , found out gig pays agent £400.

Will you rant ? or chill

Can you re-post your question such that it makes sense?

[eek]

When it comes to rates there is only 1 answer its

[evilagent]

having done a little calculation - If an agent is taking up to 25% of £400. which is £300 for the contractor.

Example :
In a month (21 days) ,agent is making
£100 x 21days = £2,100

Free easy money just from one contractor . Imagine if they did same for 10 more contractors -That is £21,000/PCM

sweet! i think i want to own a recruitment agency

Good luck with that one!

Your contractor will probably be expecting payment weekly, your client may be on 30 or 60 day credit terms!! You have to bankroll the contractor until the client coughs up! If you factor your invoices, you are giving a hefty percentage of your margin to banks, etc.

You have to trawl through endless CVs from muppets who apply when they clearly don't have the skills. Please allow us to summarily execute these morons!

You have clients who don't actually know what they want, and send you on wild goose chases for candidates they will never take on. Be prepared to get the flak for this.

You have candidates who want to bail out of a gig for the flimsiest of reasons, and trawl forums seeking "permission" to justify this, to absolve themselves of the guilt of being d1cks.

When renewal comes along, candidates play hard-ball for a rise, and your £100 a day for doing nothing becomes £40-50 a day for doing nothing. Your credit risk remains the same. (ie, paying contractors for weeks before you get the client paying their invoice)

Cheers!

Mind you, having a small group of workman-like professionals, who you know know their stuff, and get on with the job, make it worthwhile. (mostly)


PS: it's difficult to give a value of day-rate percentages, as each client / candidate circumstance is unique. But, 15% is good average.
If it s a big client, you might have to settle for 10-12%
If you are getting 20%, you're doing well.
Over that, you are screwing the candidate.

[quackhandle]

Knowledge is power but only if you know how to act on it.

qh

[BigRed]

If the agent is looking after you properly, providing feedback from the client, putting out feelers for extensions, taking them out for a business lunch, keeping you aware of other possibilities as you have a good relationship with them, then they might be worth 10-15%

If you know they won't bother contacting you for a similar role once the contract is finished despite having a glowing recommendation from the client and they have minimal understanding of your skills then they should only get a lump sum up front. The ones who try to get you to opt out, tell you there's an excellent chance of renewal when the client tells you otherwise, take your CV but don't forward it because you aren't on the bench/might get a renewal should suffer from DoS attacks from a group of contractors on a forum until they learn their lesson.

[rurffy]

having done a little calculation - If an agent is taking up to 25% of £400. which is £300 for the contractor.

Example :
In a month (21 days) ,agent is making
£100 x 21days = £2,100

Free easy money just from one contractor . Imagine if they did same for 10 more contractors -That is £21,000/PCM

sweet! i think i want to own a recruitment agency

[northernladuk]

The ideal margin from your point of view is the lowest possible amount you can negoiate at renewal without him telling you to do one.

The ideal margin from his point of view is the maximum he can get from you (ie. pay from client - pay to you) without you telling him to go and do one.

Equilibrium would put the answer somewhere in the middle.

If you would just about accept a margin of 25%, and he would just about accept a margin of 10%, then maybe the margin should be 17.5%?

I think that is a far too simplistic approach. You have to look at the return for effort and the agent does not put in 17.5% of the day rate effort whatsoever so the margin is still grossly skewed in his favour. Bearing in mind fixed margins are around the 6% area it shows what is possible. Yes that is for quick and repeat business instead of having to do a lot of legwork with a client but still... a sanity check between 6% and 17.5% still shows there is a lot of squeezing that can be done.

[Eirikur]

Agree with others if you were happy with 300 per day why to rant about it. The good thing is now you know in case of an extension you can go up at least to 350

[PEEL]

The question now is, what would be the ideal margin that doesn't seem like a rip off.

The ideal margin from your point of view is the lowest possible amount you can negoiate at renewal without him telling you to do one.

The ideal margin from his point of view is the maximum he can get from you (ie. pay from client - pay to you) without you telling him to go and do one.

Equilibrium would put the answer somewhere in the middle.

If you would just about accept a margin of 25%, and he would just about accept a margin of 10%, then maybe the margin should be 17.5%?

[rurffy]

Knowledge is power. You ought to be much more likely to have a successful negotiation at renewal stage if the agent is taking a 25% margin.

The question now is, what would be the ideal margin that doesn't seem like a rip off.