Agency Margins Agency Margins - Page 3
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Thread: Agency Margins

  1. #21

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    Quote Originally Posted by jbromley View Post
    If I get that kind of response, it's usually followed by "Click ... whirrrrr"

    I know of one Financial company that pays the agency a fixed rate of "contractor rate+£50" per day per contactor - doesn't matter whether the contractor is on £100 or £1,000. For hiring DBAs this is fine, but when it comes to 1st line SD staff it creates a problem ...
    THat's why a lot do a fixed percentage - again it's transparent but it also reflects the quality of who you're finding more (you'd hope!)
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  2. #22

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    My agency has a 12% margin (currently at £500).

  3. #23

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    Default opus recruitment

    I am with opus recruitment and I found out they were making a 20% margin.
    I challenged them on it and they have reduced it to 17% (about £25 extra for me a day) .
    Numbers:
    Was: 600 to the agent of which 475 goes to me
    Now: 600 to the agent of which 500 goes to me

    Parasites in my view. It would be good to have a list of the agents and what they change - I thought 12% was the standard.

  4. #24

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    Quote Originally Posted by jomo2000 View Post
    I am with opus recruitment and I found out they were making a 20% margin.
    I challenged them on it and they have reduced it to 17% (about £25 extra for me a day) .
    Numbers:
    Was: 600 to the agent of which 475 goes to me
    Now: 600 to the agent of which 500 goes to me

    Parasites in my view. It would be good to have a list of the agents and what they change - I thought 12% was the standard.
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  5. #25

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    Quote Originally Posted by jomo2000 View Post
    I am with opus recruitment and I found out they were making a 20% margin.
    I challenged them on it and they have reduced it to 17% (about £25 extra for me a day) .
    Numbers:
    Was: 600 to the agent of which 475 goes to me
    Now: 600 to the agent of which 500 goes to me

    Parasites in my view. It would be good to have a list of the agents and what they change - I thought 12% was the standard.
    Because they've already recovered their costs of finding and hiring you, and the agent has his bonus sorted, so they can be a bit more relaxed about the income stream now...

    If you're that exercised about it, the answer is quite simple. Find your own contracts and deal directly with the potential end clients. Wonder why we don't all do it...
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  6. #26

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    Quote Originally Posted by jomo2000 View Post
    I am with opus recruitment and I found out they were making a 20% margin.
    I challenged them on it and they have reduced it to 17% (about £25 extra for me a day) .
    Numbers:
    Was: 600 to the agent of which 475 goes to me
    Now: 600 to the agent of which 500 goes to me

    Parasites in my view. It would be good to have a list of the agents and what they change - I thought 12% was the standard.
    Are these the parasites that found you the gig?
    Just asking as I think that to be a parasite there is no two-way relationship.
    If of course they did some work, matched you and the client, and negotiated for you, a rate you were happy with, then maybe they're not parasites.

    Or maybe if the rate they take is too high it's your own fault. You're a mug. You don't know the market value of your skills. And they are laughing at you every single day with their £100 for doing nothing.....

    Either way. I don't think they are the baddies.
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  7. #27

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    Quote Originally Posted by SteelyDan View Post
    Agency want to pay me £400/day, & are charging the client £510.
    I raised the point at interview with the client who kindly shared their rate parameters, as provided to agency. They weren't aware of what the agency had advertised the role at, as no rate was indicated on the advert. They looked at little puzzled/bemused. Today I have radio silence. Not sure if I've stirred up a hornets nest.
    I once attended an interview and my all inclusive rate cover was on the agency added cover sheet on my CV which was on the interview desk in front of me.
    It was a massive 40% mark up on my rate.
    I did not say anything in the interview. But after i started i mentioned it to the client, and the client was not pleased as the agent was supposed to be working on a much lower margin. So they complained and the agent was forced to give me an immediate 20% bump in my rate. The agent were very apologetic and claimed it was genuine mistake. yeah right.

    I wouldnt rock the boat during the interview process, i would wait till i start or for the first renewal and then really cut down the agency margin.

  8. #28

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    Quote Originally Posted by Fraidycat View Post
    I once attended an interview and my all inclusive rate cover was on the agency added cover sheet on my CV which was on the interview desk in front of me.
    It was a massive 40% mark up on my rate.
    I did not say anything in the interview. But after i started i mentioned it to the client, and the client was not pleased as the agent was supposed to be working on a much lower margin. So they complained and the agent was forced to give me an immediate 20% bump in my rate. The agent were very apologetic and claimed it was genuine mistake. yeah right.

    I wouldnt rock the boat during the interview process, i would wait till i start or for the first renewal and then really cut down the agency margin.
    Why are you taking gigs 40% below your market rate? Your first gig and you've got caught by Newbie Tax?

    If the client is paying for (assumed numbers) 500 pounds for a 300 pound contractor why wasn't the client trying to claw the money back from the agent?
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  9. #29

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    Quote Originally Posted by northernladuk View Post
    Why are you taking gigs 40% below your market rate? Your first gig and you've got caught by Newbie Tax?

    If the client is paying for (assumed numbers) 500 pounds for a 300 pound contractor why wasn't the client trying to claw the money back from the agent?
    The way margins work, i was only going 15% below market, not 40%.
    The numbers were something like this (this was a long time ago).
    Market rate was £350 a day. I was happy to take £300. Agent put me in at 420 including agency fee.
    Agency mark up on my rate was 40%. (But 28% of the whole)
    My rate was about 15% below market (50 quid less than 350)

    It was an initial 3 month contract and i was trying to get my foot in the door with this client, so wasnt too fussed about rate.

  10. #30

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    Quote Originally Posted by Fraidycat View Post
    The way margins work, i was only going 15% below market, not 40%.
    The numbers were something like this (this was a long time ago).
    Market rate was £350 a day. I was happy to take £300. Agent put me in at 420 including agency fee.
    Agency mark up on my rate was 40%. (But 28% of the whole)
    My rate was about 15% below market (50 quid less than 350)

    It was an initial 3 month contract and i was trying to get my foot in the door with this client, so wasnt too fussed about rate.
    Ignore the 40%. You get a percentage of the agency's fee - in your case 72%. The agency does not get 40% on top of yours. It's their business, after all.

    You are right to focus on what you get though. Ignore the agency margin, your aim (and your duty as a director ) is to get the best rate you can.
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