Agency Percentages

[Craig Thorngren]

I’ve been reading where people think an agency is taking too much off the top of contracts; basically skimming too much of the Independents backs. So with that being said, what do you think is a fair percentage for either the agency or company hiring you to make off of your labor?

Any agencies out there willing to publish what percentage they keep?

I’m just curious as to what everyone thinks…

Chief

[Scott Beveridge]

I’ve been reading where people think an agency is taking too much off the top of contracts; basically skimming too much of the Independents backs. So with that being said, what do you think is a fair percentage for either the agency or company hiring you to make off of your labor?

Any agencies out there willing to publish what percentage they keep?

I’m just curious as to what everyone thinks…

Chief

I bet it’s not as it was long ago – I suspect 18 – 22% min. and 28 – 35% max. Saw some numbers recently closer to the max. end….

[James McLauchlan]

So with that being said, what do you think is a fair percentage for either the agency or company hiring you to make off of your labor?

I’d say 20% would be fair. Again, I’ve seen less and more.

[effinreps]

Scott get real!!!!! Only the robbing t***s take anything like that. Compass (US) for 1. I don’t know about the UK branch. I have worked for several UK/Guernsey based agencies over the last 18 months (PROFFS, Seatechs and Subserve pro) and those 3 are around the 10 to 15% mark. UKPS were at the 15% mark a couple of years ago, but have no recent knowledge. Rumic are at around 18% according to a few guys I’ve spoken to recently.

I find a lot of work myself, agree a day rate, and take that offer to the agency. Doing it this way you can get them down as low as 5%.

25-35% is just daylight robbery, any company skimming that sort of % should be blackballed. All they do is cover your insurances sort the pay roll and sit on their arses and watch the money roll in.

[Craig Thorngren]

I find a lot of work myself, agree a day rate, and take that offer to the agency. Doing it this way you can get them down as low as 5%.

Why would you go through an agency if you’ve already worked up a deal with a company? Why not just go direct?

So is it a daily rate or a percentage your looking for? If your looking for a particular daily rate and get it, does it really matter what the agency is charging the clients???

Chief

[Steve McCaffery]

We only charge 15% for all personnel, as for effinrep, do you have this in writing from the Client? You seem to be the only one that thinks you are being ripped off, well sorry we are fair to everyone across the board.

[turtle]

Chief–Rationale for going through agency–Sometimes it is easier, less documentation requirements, guaranteed liability limits from customer perpective. Sometimes that is the only way a company will offer the post, especially for expats working in a market like North Sea.

effinreps–In the late 90’s I was finding my own work and shopped agencies to go through. At that time I was giving 8% for the agency’s efforts. Their standard rate was 15% at time. (I see no point identifying agency here–still in business today)

My view is I set the price for my "tomatoes". If Market A can sell them for 20%, more power to them. But I reserve the right to sell to Market B if they can sell a lot more of my product at only 10%. I also reserve the right to mark up or down the price I am asking when I place my product on the market next month. I get the fair market value that I place on my product, let supply and demand dictate end user cost.

[Craig Thorngren]

Turtle,

I understand completely why most folks would want to go through an agency, especially one with a good reputation. It’s just that if you negotiate with a client and they are willing to pay you what your asking, it just doesn’t seem to make a whole lot of sense to go through an agency unless you need their insurance or some thing like that.

An agency that is just supplying people, IMO should be able to make 15-20% of the established rate. I also think that whomever owns the gear has the biggest risk of all, and should get the biggest payback (i.e. the bigger the risk, the bigger the payday).

Chief

[liddelljohn]

Having worked as an agency bod for 30 years first in Telecoms ,Enginnering and now ROV I know that the longterm average is 18-22% …..however some agencies will work on less but that can be financially risky as they have to wait up to 3 months for payment from the big clients but pay you within 2-4 weeks ….One ageny i worked for in 1985 went bust because of not having a cushion due to low percentages and us contractors lsot 3 weeks pay !!!!……also some big multinational agencies have as much as 50% ,
i once worked for Nokia through Manpower , the rate was crap but when that contract ended i moved to another agency but another contract at Nokia my rate went up 28% overnight i found out that Nokia were paying the same money to both agencies but Dataworforce were only taking a reasonable 22% cut .

After that experience i always avoided some of the big multinational agencies as they are the ones that really take the piss.

[me]

If YOU sign a contract that mean your happy with what they offer (bodyshop) whats your problem then??? if you dont like it go direct, i do both and never had a problem, well not big problems.

[effinreps]

Why would you go through an agency if you’ve already worked up a deal with a company? Why not just go direct?

Chief, you obviously have not been at this game very long. Turtle is absolutely correct, it’s just a lot less hastle going through an agency particularly for UK based work. I’ve done jobs direct but there’s reams of paperwork to fill out, sometimes you can wait up to 3 months to get paid and have to sort your own insurance. Some companies will not take you on direct and insist that you go through an agency.

[Craig Thorngren]

Effinreps,

I’ve been flying and supervising folks flying ROV’s for 9 years. I’ve owned my own business doing inspections and recoveries for over three now. What’s your point???

On the other hand your making my point for me… If you want that extra 10, 15, 20 or even 30 percent, you have to do all the paperwork, put up with all the BS etc… to get the better compensation. If the agencies are doing all the ‘tough paperwork’ that the pilot can’t or doesn’t want to fill out, then the agency deserves to take a bite off the top.

Chief

[luckyjim37]

Surely if you are aranging your own contracts it is just as easy to work as a ltd company.

Especially if you are not doing enough days to get near the SED refund.

If you work for 180 days and have agreed 400 a day from the client and then give 5% of that to the agent you are losing 3600. Insurance for a ltd company providing personnel services for up to 3 employees (on my last policy) was around 1000 GBP. Also as you would be the director there are tax breaks not to mention all of the perks when you register for VAT. It is not that complicated to do and means you earn more.

To top it off you can still go to an agency as well if you are looking for work.

[Andy Shiers]

Hmmmmm , Not sure about the VAT there old chap 😕
If you are working Local and in the UK then It’s good but if you are freelance all over the world VAT does not help at all ! 😯

[Donald Faulds]

Usually I am sitting at the client side. I always use agencies and the fee is 15% on top of the person rate. That 15% gets rid of a whole layer of hassle about insurance, employment law, travel, getting people to the airport on time and getting alternative people in a rush. It is worth paying. Even with people I know, I use an agency to employ them.
Cheers

[Author]

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