Agency Margins

**SteelyDan** · 5th December 2019, 11:30

Recently had interview for role, went well, sounds good.
We discussed rates, & it transpires agency margin is £100+/day which I think is unreasonable.
Thoughts?

**Anubis** · 5th December 2019, 11:37

So long as you end up with what you are happy with why worry about any other parties.

If your agency gets £100 each day but you also end up with what you wanted then everyone wins. Looking at the agency thinking "...but that's not fair. I could've got more!" isn't the right way of thinking.

You charge £X per day. If someone is happy to pay that then everything else shouldn't matter (it's their business).

**Manic** · 5th December 2019, 11:39

Current gig the agent gets 150

. Accepted norm is 14-15% though I believe.

**malvolio** · 5th December 2019, 11:39

So negotiate - or don't take the gig.

Don't forget, they don't take a cut of your income. You get a cut of theirs.

You need to secure the rate you want, and generally speaking their margin is irrelevant: 100 a day is quite a lot if you get £250 a day, but not all that much if you get £1000...

**SteelyDan** · 5th December 2019, 11:53

All good & reasonable points, thanks. Normally it's been £50 margin but this £100+ seems a bit OTT.
Yes Mal, next step is negotiating with agent to see if I can push it more in my favour.
Not really the climate to be not taking opportunities I know. One of those times when I wish I hadn't asked, I think; sometimes it's best not to know these things.

**PCTNN** · 5th December 2019, 12:30

you should be happy agency went with you rather than the guy that can do the same job for 50 quid cheaper

**newmove** · 5th December 2019, 13:02

That's nothing. In one of my previous roles, I realised the agency was getting £350/day. Though I was fine with my rate but.....damn!

**LondonManc** · 5th December 2019, 13:05

Most IBs are on a fixed percentage structure based on length of stay - 1st year c10%, reducing to 5% by the end of 20 months for example. They manage to make a lot of money on a volume basis.

Up to the client to cap it so they're not paying £600pd for a £300pd contractor as has happened in the past.

**simes** · 5th December 2019, 13:13

Originally Posted by SteelyDan

Recently had interview for role, went well, sounds good.
We discussed rates, & it transpires agency margin is £100+/day which I think is unreasonable.
Thoughts?

It's capitalism at its finest.

You can refine it still further through negotiation.