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Going Direct

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    Going Direct

    Met a client and discussed their project - sounds right up my street and pretty much got offered the job on the spot. Got / had 2 other interviews, but I'm not quite as interested in them due to their working arrangements. Other contracts are much higher rates, though rate isn't a primary driver for me if I'm honest; other offers will just allow me to bolster my negotiation position, as you would expect.

    Raised a caveat with the client during the meeting that the rate was lower than my normal / market rate for the services I'm providing. Didn't give any specific figures around what the agent's margin was, but figured it out based on some "suggestions" that were thrown around in the meeting - between 20 and 30%. Agent confirmed the margin on the phone afterwards - which was an unexpected bonus - and I informed them I'd want a fairly significant rate increase if I was to take the job - though what I've asked for is still well below quoted rate + their margin (i.e. they will still "make" money on my day rate, whether its classed as profit or not). Asked them if they'd offset any of it by reducing their margin as the client has already agreed a top-end budget with them - obviously they're not keen and tbh, I don't blame them.

    Only paperwork involved is the "right to represent" email I sent back to the agent before the interview. Other than that, there are no contracts in place on either side - client is worried about signing the agency contract because of all the terms in it, but I expect that will happen before we engage.

    Pretty sure the client is ready to give me the project, but I've got a feeling I'm not going to get much - if any - movement on rate, which is a deal breaker due to travelling / accommodation costs. If there's no movement when I speak to the agent, it's simply not doable.

    Yep... I know... "move on" I hear you say... but my question is this; apart from the obvious moral issues and pissing the agency off, can I go direct with the client if the agency refuse to swallow the rate increase? I normally have no issue with agencies taking their cut, but in this instance it seems like I may miss out on a good opportunity because the agency refuse to drop their margin OR the client refuses to increase their budget. I appreciate that contracts can be verbal / implied - though it's not my side I'm concerned about, its whether suggesting to the client that we go direct would put them on edge (they've already expressed that they wish they'd seen my website / met me before they got the agency involved!).

    This also bodes the question - how long would I need to wait before I can engage with the client directly after introduction? The client has already expressed that they would be very interested in me providing them with more ad-hoc services in the future (which I'm all for). I've not seen or signed a contract, so it's not just a case of looking at the restriction clauses.

    #2
    TL;DR

    Can anyone summarize for me?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by Spikeh View Post
      Met a client and discussed their project - sounds right up my street and pretty much got offered the job on the spot. Got / had 2 other interviews, but I'm not quite as interested in them due to their working arrangements. Other contracts are much higher rates, though rate isn't a primary driver for me if I'm honest; other offers will just allow me to bolster my negotiation position, as you would expect.

      Raised a caveat with the client during the meeting that the rate was lower than my normal / market rate for the services I'm providing. Didn't give any specific figures around what the agent's margin was, but figured it out based on some "suggestions" that were thrown around in the meeting - between 20 and 30%. Agent confirmed the margin on the phone afterwards - which was an unexpected bonus - and I informed them I'd want a fairly significant rate increase if I was to take the job - though what I've asked for is still well below quoted rate + their margin (i.e. they will still "make" money on my day rate, whether its classed as profit or not). Asked them if they'd offset any of it by reducing their margin as the client has already agreed a top-end budget with them - obviously they're not keen and tbh, I don't blame them.

      Only paperwork involved is the "right to represent" email I sent back to the agent before the interview. Other than that, there are no contracts in place on either side - client is worried about signing the agency contract because of all the terms in it, but I expect that will happen before we engage.

      Pretty sure the client is ready to give me the project, but I've got a feeling I'm not going to get much - if any - movement on rate, which is a deal breaker due to travelling / accommodation costs. If there's no movement when I speak to the agent, it's simply not doable.

      Yep... I know... "move on" I hear you say... but my question is this; apart from the obvious moral issues and pissing the agency off, can I go direct with the client if the agency refuse to swallow the rate increase? I normally have no issue with agencies taking their cut, but in this instance it seems like I may miss out on a good opportunity because the agency refuse to drop their margin OR the client refuses to increase their budget. I appreciate that contracts can be verbal / implied - though it's not my side I'm concerned about, its whether suggesting to the client that we go direct would put them on edge (they've already expressed that they wish they'd seen my website / met me before they got the agency involved!).

      This also bodes the question - how long would I need to wait before I can engage with the client directly after introduction? The client has already expressed that they would be very interested in me providing them with more ad-hoc services in the future (which I'm all for). I've not seen or signed a contract, so it's not just a case of looking at the restriction clauses.
      Key considerations:

      - Do you have any contractual obligation to go to client only via agency (what was in the right to represent email)?
      - Does client have any contractual obligations to engage you only via agency (the client should know this)?
      - Is the client even prepared to engage YourCo directly?
      - Are yo comfortable with the risk of poor payment terms or late payment?

      Comment


        #4
        Originally posted by northernladyuk View Post
        Key considerations:

        - Do you have any contractual obligation to go to client only via agency (what was in the right to represent email)?
        - Does client have any contractual obligations to engage you only via agency (the client should know this)?
        - Is the client even prepared to engage YourCo directly?
        - Are yo comfortable with the risk of poor payment terms or late payment?
        Actually, I've just checked and I didn't actually send a RTR email to the agent for this particular engagement - they didn't ask for one, just assumed they had!

        Not sure if they'll engage directly, though they seemed keen. That's my problem, though - I engage with many clients directly and have my own contracts ready.

        And yes, of course I'm fine with risk of poor payment etc, though my standard terms mitigate that risk somewhat.

        Comment


          #5
          Lied again! Just found something, but I didn't reply to it, nor did they ask me to:

          "Also just a quick mail to confirm <AGENCY> will act on your behalf as an Employment Business as defined under the Employment Agencies Act 1973."

          That's it, embedded in the email and the rest is not relevant.

          Comment


            #6
            Originally posted by northernladuk View Post
            TL;DR

            Can anyone summarize for me?
            The OP has done your mum.

            Comment


              #7
              Originally posted by Spikeh View Post
              Actually, I've just checked and I didn't actually send a RTR email to the agent for this particular engagement - they didn't ask for one, just assumed they had!

              Not sure if they'll engage directly, though they seemed keen. That's my problem, though - I engage with many clients directly and have my own contracts ready.

              And yes, of course I'm fine with risk of poor payment etc, though my standard terms mitigate that risk somewhat.
              Depends how cheeky you feel. How about sending your standard contract template across to the client with the rate in there, and mentioning that of course you're open to a discussion about terms or looking at their standard contract template.

              Comment


                #8
                Originally posted by northernladyuk View Post
                Depends how cheeky you feel. How about sending your standard contract template across to the client with the rate in there, and mentioning that of course you're open to a discussion about terms or looking at their standard contract template.
                Maybe. Might drop him an email just saying thanks and fishing a bit more actually.

                Comment


                  #9
                  Originally posted by northernladyuk View Post
                  The OP has done your mum.
                  Who hasn't?
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by northernladuk View Post
                    Who hasn't?
                    Your dad.

                    Comment

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