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Agency Charges

  • 07-07-2006 9:40am
    #1
    Magic_Roundabou
    Closed Accounts Posts: 17 ✭


    Been wondering about this for a while and thought I'd run it by this forum. Does anyone know how agencies charge their clients for software contractors ?? I've been contracting for a year now and am considering putting up my daily rate. What I need to know is does the agency

    (a) add a percentage onto my rate for themselves when they bill the client

    or

    (b) do they charge a fixed fee ?? This would allow them to absorb my rate increase without annoying the client but would also encourage them to keep the contractors fee as low as possible as it would be more cash for them.

    Would really appreciate anyones opinion who knows the ins and outs of how agencies work.


Comments

  • #2
    homeOwner
    Closed Accounts Posts: 779 ✭✭✭homeOwner


    Agencies charge the client a % of your daily rate. Its between 10-20% depending on the agency. Typical is 15% in my experience, but there are agencies out there charging 20%.

    One place I worked was hiring alot of contractors from the one agency and they negotiated a lower commission rate in order to give some of them a pay rise after 18 months. The agency commission in that case was 15% and they dropped it to 12.5% but there were loads of contracters in the place and the agency was making a fortune.


  • #3
    Magic_Roundabou
    Closed Accounts Posts: 17 ✭Magic_Roundabou


    Thanks for that. Coming to the end of a 3 month contract and have been told, off the record, that it's going to be renewed. Problem is that I want to put my daily rate up but it might be considered bad form to do that on a renewal. Any advice greatly appreciated.


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