What does an Agency offer that I cant?

[threaded]

Being better at selling is dead easy. Most agents are actually very poor at selling and just play a numbers game, i.e. make enough calls and you're bound to get a bite. Things like customer relationship management, building up kiss-trees of the client companies, you've got to be kidding, many find the fax machine a challenge.

[thunderlizard]

Nothing at all wrong with that plan. It just rests on your ability to sell it better than your competitor agencies.

[ookook]

@pondlife

It wouldnt matter cause the first people in would be me and my colleagues who form the agency. So we wouldnt be paying out anything to anyone in advance. i take your point though..

[NetwkSupport]

This happened at my last contract, a big wig hirer and firer PM started an agency up hired his own people as contractors, job still got done and the best people were hired, they took a 15% cut of the hourly rate.

It went all the way to the top anyway (the guy was mates with the CEO) so there was no grumbles from the client.

[Pondlife]

5 people at £500pd for 90 days is £225,000 you will have shelled out before being paid yourself

[Bagpuss]

I dont mean hire them as in permies - I mean just act as the agency for their ltd's - just like the current agency does for me at the moment

I hadn't factored in the increased expenditure on hair gel though...

Will they be happy for you to take a cut if you don't provide factoring services? I am direct with my client, it is almost April and so far this year I have had payment for January.

[ookook]

I dont mean hire them as in permies - I mean just act as the agency for their ltd's - just like the current agency does for me at the moment

I hadn't factored in the increased expenditure on hair gel though...

[Pondlife]

My 2p worth

Assuming that you have no prevention clauses there's nothing stopping you going direct. If a group do this together under one company you will have to work out different classes of share to allow different divs to be paid based on the work you do.

If you decide to 'hire' others, you will have to pay them (monthly?) plus Emp NI, You will also need Emp liability insurance and have to factor holiday pay plus all other legal requirements.

In addition you will have to cover the delay in payments from the client. 10 people at 500 per day for 90 days is no small sum of cash.

The other big thing to consider is that if you become an agent you will have to spend all your cash on hair gel, a cheap suit and a 3 series

HTH

[Kyajae]

A thought thats been brooding in my head for the last few days:

I've read quite a lot on the boards about going direct, but my question is more along the lines of replacing the agency ( its just idle speculation)

Say I work for a a big project company, I'm a typical contractor with a ltd and I find the job and work thru an agency.

The project company has a number of upcoming big projects spanning the next few years

Myself and X others are are well regarded within the project company and they would be keen to retain our services.

So, after the first contract ends, I want to increase my rate -

I personally could:

a) Attempt to contract directly with the project company - bypassing the agency (assuming no clause that prevents this in my contract)

b) continue working thru the agency

but whats to stop the group of us forming a new company that would act as an agency for US? ie our new agency company replaces (in part) the original agency. The original agency still supplies 50% of the contractors, another agency supplies 45% and we provide 5%.

The project company gets our services at the same rate. We get to cut the original agency out of the equation and if we secure more work in the future we get to hire more contractors thru our new agency and WE take the cut.

All well and good in abstract theory - but I'm sure there are some flaws in my master plan. I guess I'm asking to be shot down and told what the agency provides to the project company that OUR newly formed agency company couldn't supply.

Cheers

And we'll hunt you down and torture you by vigorously rubbing your scrotum with a cheese grater

[Barriebazg]

Im interested to see what gets said about this as well...

[ratewhore]

Nothing to stop you moving into a more 'pimpish' role but remember this...


...we'll hate you when you're a pimp!!

[ookook]

A thought thats been brooding in my head for the last few days:

I've read quite a lot on the boards about going direct, but my question is more along the lines of replacing the agency ( its just idle speculation)

Say I work for a a big project company, I'm a typical contractor with a ltd and I find the job and work thru an agency.

The project company has a number of upcoming big projects spanning the next few years

Myself and X others are are well regarded within the project company and they would be keen to retain our services.

So, after the first contract ends, I want to increase my rate -

I personally could:

a) Attempt to contract directly with the project company - bypassing the agency (assuming no clause that prevents this in my contract)

b) continue working thru the agency

but whats to stop the group of us forming a new company that would act as an agency for US? ie our new agency company replaces (in part) the original agency. The original agency still supplies 50% of the contractors, another agency supplies 45% and we provide 5%.

The project company gets our services at the same rate. We get to cut the original agency out of the equation and if we secure more work in the future we get to hire more contractors thru our new agency and WE take the cut.

All well and good in abstract theory - but I'm sure there are some flaws in my master plan. I guess I'm asking to be shot down and told what the agency provides to the project company that OUR newly formed agency company couldn't supply.

Cheers