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Introduction-only agency

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    Introduction-only agency

    So the way I see it agencies can operate in two models:

    Margin: They find a person and take a cut whilst acting as the intermediary. So you get paid by the agency, and the margin is the difference between what they charge for you vs. what they pay you. Agencies are generally pretty useless and give not a fig whether the contract is IR35 safe because there's no comeback to them (at present). Clients equally clueless. They just need a person to do a thing.

    Contingency: They find a person and take a one-off fee. You deal directly with the end-client as the agency has no/doesn't want any ongoing involvement. Much more the case for permie roles? Contracts clearly benefit from ongoing margin.

    So there seems to be a gap here for a one-off finders fee for contractors.

    Assumption: Client thinks contractors won't have contracts set up, so an intermediary handles this and makes the contractor sign up to their terms. Client gets consistency with a sense of more credibility than dealing with a one-man band. They also favour one level of indirection? Offloads potential disputes to a third party?

    Solution?

    * An "agency" that services the contract market but focuses on introduction only. You offer the contractor a variety of domain-specific templates for IR35-compliant agreements and do effective selling to convince the client these are just as good as any contract that an intermediary would provide.
    * Contractor agrees directly with client terms that would be as resilient to HMRC investigations as possible, both in working arrangements and contract.
    * Contractors get to negotiate terms directly although the goal would be to default to a mutually compatible arrangement that protects and satisfies both.
    * Agency takes the finders fee, but isn't an intermediary, no ongoing involvement, no liability. Agency might also upsell something like timesheeting and payment logging services, on the assumption that client/contractor won't have anything set up themselves.

    Feasible? Issues to overcome? Incorrect assumptions? Would clients be interested on the grounds that it would clearly reduce costs whilst being offered more direct control over IR35 concerns? Currently the client relies on the intermediary to be supplying a contract that won't cause issues down the line?

    As usual, I've had another terrible experience with a hopelessly incompetent agency and I need some catharsis by thinking of better ways this could be done.
    Last edited by cloudcontractor; 3 October 2019, 09:51.

    #2
    Originally posted by cloudcontractor View Post
    As usual, I've had another terrible experience with a hopelessly incompetent agency
    You live in a market which is predominantly clients using agencies. If you keep getting upset by that then maybe you should change your approach rather than thinking the world is going to pivot in your direction.

    Perhaps you could share with us what problems you have been having.
    "Don't part with your illusions; when they are gone you may still exist, but you have ceased to live" Mark Twain

    Comment


      #3
      Maybe nice view for a contractor but you are missing huge elements of what a client wants and what an agent actually does.

      The whole value model is missing and further down from that all the offerings, costing and so on which makes you option nothing more than a guess of a solution that only serves the need for the contractor.

      Far too complex for one contractor to fix in a forum post.

      Having a problem with a low level drone is not really the basis to attempt to change an age old and well tested business model.

      You think doing the same with an apprentice HR bod is going to be any better than an agent?
      Last edited by northernladuk; 3 October 2019, 10:58.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by Cirrus View Post
        Perhaps you could share with us what problems you have been having.
        Not the topic of this thread and nothing novel for this board. Who said I expected the world to 'pivot in my direction'? I'm speculating on ways to improve the experience whilst cutting out an expensive middleman.

        Comment


          #5
          Originally posted by northernladuk View Post
          Far too complex for one contractor to fix in a forum post.
          You love this stuff and issuing your opinion.

          You respect agencies far more than I do. Or perhaps they undertake some unfathomable scope of work that I'm not seeing. Or perhaps what seems complex and valuesome to you is trivial to me.

          Agencies engage with a client.
          Agencies spam linkedin for people with matching keywords and collect CVs.
          Some CV filtering (more or less depending on how competent they are at spamming in the first instance)
          CVs to client, short list to interviews.
          Offers, or not.
          Boilerplate contract.
          Contractor starts, agencies get paid, pay contractor.

          Admin aspects in between but nothing that's not pretty simplistic lifting.

          Comment


            #6
            Originally posted by cloudcontractor View Post
            Or perhaps they undertake some unfathomable scope of work that I'm not seeing .
            Well that's a start.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by cloudcontractor View Post
              You respect agencies far more than I do.
              Me to.
              Over 30+ years I've not found any problems with them.


              If you can't describe what you think the problem is then I'm going to have to assume you're simply miffed at not getting your way in a world that is not actually set up to get you your way.
              "Don't part with your illusions; when they are gone you may still exist, but you have ceased to live" Mark Twain

              Comment


                #8
                You sound like a nice compliant push-over that'll accept any terms. Little wonder you'd see no problem with the current model, and be derisive to anyone speculating on how to challenge your comfortable, cosy lifestyle. Stay in your box and never expect better? If that works for you, god bless.

                Comment


                  #9
                  Originally posted by cloudcontractor View Post
                  You sound like a nice compliant push-over that'll accept any terms. Little wonder you'd see no problem with the current model, and be derisive to anyone speculating on how to challenge your comfortable, cosy lifestyle. Stay in your box and never expect better? If that works for you, god bless.
                  And you, as often, would be wrong. Understanding the model, the pros and cons and dealing with it without trying to fix it everytime I have a bad experience is not being a pushover.

                  Don't get me wrong. I can be as frustrated at the next person at times and the like but don't think that's a reason to have a stab at fixing it.

                  I would like to help but there is so much missing it's going to be pretty impossible to get anywhere meaningful..

                  Let's give you some food for thought. Do you know what factoring is?
                  Last edited by northernladuk; 3 October 2019, 11:28.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by northernladuk View Post
                    Don't get me wrong. I can be as frustrated at the next person at times and the like but don't think that's a reason to have a stab at fixing it.
                    I just don't get the mentality here. Yes, there's money to be made in the current model. Lots of it. If you're willing to suck up the frustrations there's a payday at the end. It's not like I don't well appreciate that. I could subsist on the 'current model' to the end of my days and make a tidy living out of it. For a lot of people that would be enough.

                    But I suppose I just see a market niche from the other direction. Agencies seem to do so many things badly, things that could be easily fixed. Various rearrangements of the model would be more efficient, more reliable, and cater better to client and contractor requirements. My original post is not a solid business plan. I'm spitballing vaguely specifically to get a conversation going about what this would actually look like.

                    So I take issue with a very negative IT WORKS AS IT IS STOP BEING A BRAT response because it's both incorrect and weirdly defeatist to presume no improvements are worth making.

                    Of course, if it all gets too annoying for me I can always start my own agency right? Stranger things have happened. You might love that idea - then I'd finally learn just how insurmountable all of the obstacles the agencies face to get a tulipty contract on my desk - but somehow I doubt it.

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