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Rate of commission that agent should make

 
#1 Rate of commission that agent should make
17/06/2010 13:32

Ripped off?

Hi I'm an IT contractor, and was placed in the contract by an agency. I've worked out that the agency is charging the client about 25% commission. Normallly this wouldn't bother me except I did ask for a slightly higher rate but the agency said no way they could more from the client. I was under the impression that normally in this industry (SAP) the usual charge was around 13-15% any idea of what the 'typical' commission is?

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#2 RE: Rate of commission that agent should make
17/06/2010 14:51

ex-rec to Ripped off? (#1)

It depends - sometimes the client will say the most we will pay the person is £500 a day and you will get your rate on top.

Sometimes they will say £500 is all there is so you either have to gte your candidate to accept less or take a hit on rates.

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#3 RE: Rate of commission that agent should make
17/06/2010 17:04

rec to ex-rec (#2)

This conversation really needs to take place prior to starting under a contract.

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#4 RE: Rate of commission that agent should make
17/06/2010 17:54

Dodgy Dave to rec (#3)

I'd say 1.5-2.0% commission is a fair fee for the agency, considering their 'value-add'. LOL.

Pimp my ride.

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#5 RE: Rate of commission that agent should make
18/06/2010 10:22

ed to Dodgy Dave (#4)

Agent gets me a contract = £500 to me. £100 to agent.

Fail to get contract = £0 to me. £0 to agent.

Value add of agent to me = £500

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#6 RE: Rate of commission that agent should make
18/06/2010 10:32

anon to ed (#5)

Flawed logic. The agent has not solely created the £500 of value. Remember that the contractor had to do work for the client to make that money (as well as the agent's £100).

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#7 RE: Rate of commission that agent should make
18/06/2010 10:42

ed to anon (#6)

It is a competitive market. If you think it is unfair then get your own contract. If you can't then you are £500 a day better off despite the cost of the agent.

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