Re: Agency PerCentage Rate

davidof wrote: 
Jim Lawton wrote:

On 11 Oct 2005 04:21:06 -0700, "aidy" <aidy.rutter@xxxxxxxxx> wrote:


Hi,

What is the "normal" percentage rate an agency will take off the IT
contractors pay for their "services"?

Aidy



Used to be around 20% in the dear dead days beyond recall. Ask them to tell you,
a decent agent should.


My experience is around 10% where the agency has a number of contractors on site - usually preferred supplier status. I've never heard of less than 5% - I never charged less than that for invoicing and PAYE. Rates could be 15-20% elsewhere. Usually 20% on foreign contracts as there is potentially more work for the agent (you know - trip to Paris etc).

These are norms, as others have pointed out some agents charge a lot more, generally clients used to dealing with agencies don't like it much .

I did some IT work in a recruitment agency <ducks> in the heady days around the turn of the millenium. Generally the rates were 15-25% depending on, as you say, the extent of the relationship between client & agency, and the perceived rarity of the skillset required.

I recall one incident when a relatively inexperienced agent managed to get around 45% margin through some fast talking. The boss was furious - if the client ever realised the margin they'd have walked.

B.
.

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