Originally posted by jbromley
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Agency Margins
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The greatest trick the devil ever pulled was convincing the world that he didn't exist -
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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.Comment
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Originally posted by jomo2000 View PostI 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.Vote Corbyn ! Save this country !Comment
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Originally posted by jomo2000 View PostI 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.
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...Blog? What blog...?Comment
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Originally posted by jomo2000 View PostI 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.
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.
How many gigs have you found yourself without an agency?See You Next TuesdayComment
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Originally posted by SteelyDan View PostAgency 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.
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.Comment
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Originally posted by Fraidycat View PostI 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.
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?'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostWhy 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 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.Comment
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Originally posted by Fraidycat View PostThe 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.
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.Blog? What blog...?Comment
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