Reply to: Asking Agency for rate % cut

[malvolio]

Really? I find most agencies just get in the way of me doing business with my clients and I would do away with them in an instant if the clients would engage me direct.

But they won't, for a host of reasons (and simplified billing is not one of them). So assuming what you get paid is what you want to get paid - and if it isn't why are you taking the gig? - then how much is the agency's income worth to you? His "cut" allows you to earn a few grand a week. And don't kid yourself the client will pay you what they pay the agency; go look up "added value".

All well and good being a hero about it, but the reality is that while the work doesn't exist without us to do it (and you can argue that one away fairly easily), you wouldn't be there without the agency. So, as previously advised, live with it.

[Wanderer]

As I am currently in a 3 month contract, with possible renewal [not confirmed yet, but likely as the business is growing all the time], but as I have not asked in the past for the agency margin on my current rate and T&Cs.

What are ppls advice to approaching this?

Make discrete enquiries at the client to find out how much the agency is taking off you. Asking the client if the agency are on a "preferred suppliers list" and if they have many contactors at the client is a good opening line.

The reality of it, is utterly irrelevant. The "contractor takes a cut of the agents rate" is necessary because in LEGAL terms, that is EXACTLY the situation.

Only in that the contractor bills the agency and the agency bills the client. Only a few times in the past 15 years have I've been introduced to a client by an agency. As far as I'm concerned, they are taking a slice of my money so I make it my business to know how much they are taking for doing bugger all.

Funnily enough, it's a situation which suits contractors very nicely generally, because it's another layer between HMRC and their limited company if the gig they're doing is their only source of income.

Really? I find most agencies just get in the way of me doing business with my clients and I would do away with them in an instant if the clients would engage me direct.

[kaiser78]

It's the only thing that gets my goat about the whole contractor/agent thing: as long as nobody brings it up I won't start! I just see red whenever I hear it.

No-one likes dealing with agents but in 99% of contracts they are a necessary evil. However there are more important things in our sad, non-progressive contractor lives to lose sleep over or see red whenever one hears it.

[Taita]

It's the only thing that gets my goat about the whole contractor/agent thing: as long as nobody brings it up I won't start! I just see red whenever I hear it.

Why get so excited if you never use agents? Fleas need hosts - live with it.

[Cenobite]

......and to p*** contractors off in forums

It's the only thing that gets my goat about the whole contractor/agent thing: as long as nobody brings it up I won't start! I just see red whenever I hear it.

[The Agents View]

I understand that and in terms of who gets what money paid to them from who it is entirely correct. What I don't agree with is using this fact to make out agents are the ones doing all the work, and contractors are some kind of inconvenience for taking a cut out of "your" money. Sounds like agents trying to justify their existence to me.

I mainly use this literal interpretation to dampen down contractors who are being unnecessarily awkward, or who are trying to suggest that they'll go direct to the client to negotiate their rate.....

......and to p*** contractors off in forums

[Cenobite]

The reality of it, is utterly irrelevant. The "contractor takes a cut of the agents rate" is necessary because in LEGAL terms, that is EXACTLY the situation. Funnily enough, it's a situation which suits contractors very nicely generally, because it's another layer between HMRC and their limited company if the gig they're doing is their only source of income.

I understand that and in terms of who gets what money paid to them from who it is entirely correct. What I don't agree with is using this fact to make out agents are the ones doing all the work, and contractors are some kind of inconvenience for taking a cut out of "your" money. Sounds like agents trying to justify their existence to me.

[The Agents View]

It's pretty rare I've got work through agents: I've got stuff from word-of-mouth and doing the cold-calling myself.

Say the agent's making a standard cut of 15% and the contractor gets the remaining 85%, I'd say the contractor's doing the majority of the work and that's reflected in the relative cuts.

I understand what agents are for but this contractors take a cut of the agent's rate talk really gets my goat. Without a contractor with the relavent skills, there is no work and the human race survived for a long time before agents came along.

The reality of it, is utterly irrelevant. The "contractor takes a cut of the agents rate" is necessary because in LEGAL terms, that is EXACTLY the situation. Funnily enough, it's a situation which suits contractors very nicely generally, because it's another layer between HMRC and their limited company if the gig they're doing is their only source of income.

[Cenobite]

And if you could do the work that the spotty agent school leaver can do, then it wouldn't matter to you....

It's pretty rare I've got work through agents: I've got stuff from word-of-mouth and doing the cold-calling myself.

Say the agent's making a standard cut of 15% and the contractor gets the remaining 85%, I'd say the contractor's doing the majority of the work and that's reflected in the relative cuts.

I understand what agents are for but this contractors take a cut of the agent's rate talk really gets my goat. Without a contractor with the relavent skills, there is no work and the human race survived for a long time before agents came along.

[Cenobite]

I'm currently working on a £2bn programme for HMG, my bit of which is worth around £140m, so wind the neck in a little.

Ah, the old public sector contract circuit: a great place for dinosaurs to go and die.

[malvolio]

But the work the client is mainly paying for is the work of the contractor but if some spotty agent school leaver can do the type of contracts you go for then fine.

I'm currently working on a £2bn programme for HMG, my bit of which is worth around £140m, so wind the neck in a little.

[The Agents View]

But the work the client is mainly paying for is the work of the contractor but if some spotty agent school leaver can do the type of contracts you go for then fine.

And if you could do the work that the spotty agent school leaver can do, then it wouldn't matter to you....

[Cenobite]

FTFY...

I didn't say I liked it, but I live in the real world.

But the work the client is mainly paying for is the work of the contractor but if some spotty agent school leaver can do the type of contracts you go for then fine.

[malvolio]

Oh dear, another contractor who understands how the business works.

FTFY...

I didn't say I liked it, but I live in the real world.

[Cenobite]

That agency does not take a cut. You do. End of.

Oh dear, another agent lover.