Ratio between agent's share and consultant's share 
Author Message
 Ratio between agent's share and consultant's share

Hi,

Could someone please tell me what is the customary/fair/going ratio
between the agent's share and the consultant's ?
Is it 10/90 ? 20/80?
Does it depend on the gross sum (i.e.: what the client pays)?

Thanks



Sun, 15 Aug 1999 03:00:00 GMT  
 Ratio between agent's share and consultant's share

Moshe,

This varies.  As a 7+ year contractors, my wife and I have seen everything
from 7/93 to
70/30 (Yes it does happen).  Most common seems to be 20/80-40/60.

Things to keep in mind:

1.  Does the agency have an exclusive?  If so, expect them to want 40-60%.
On the
   other hand, if there are several agencies placing at the same
installation, they can
   be used against each other to get things down to the 20-25% range.

2.  Is the agency a hardware vendor?  If so, expect the margin to be
higher.

3.  Does anyone else want the job?  On occasion we've taken jobs nobody
else wants.
    The rates can be very rewarding.

4.  Is there any competition for the job?

I would encourage you not to worry about the %.  If you are new to the
business, decide what
you are worth and go for it.  Remember, you have less security (in today's
climate, not much),
probably no benefits and *may* end up doing everyone else's shit work.  You
need to decide
how much more than an employee's salary that's worth and make that your
minimum.

The agency is out there to make a buck, and has every right to try and make
as much as
possible.  The happy contractor is one that makes his/her deal based on
what they are worth
in a given situation and does not worry about the agents cut.

Frank Clark



Quote:
> Hi,

> Could someone please tell me what is the customary/fair/going ratio
> between the agent's share and the consultant's ?
> Is it 10/90 ? 20/80?
> Does it depend on the gross sum (i.e.: what the client pays)?

> Thanks



Sun, 15 Aug 1999 03:00:00 GMT  
 Ratio between agent's share and consultant's share



:Could someone please tell me what is the customary/fair/going ratio
:between the agent's share and the consultant's ?
:Is it 10/90 ? 20/80?
:Does it depend on the gross sum (i.e.: what the client pays)?

It depends on what services the agent provides. If the they are just a
referral service, that's not worth very much. If they actively market you,
that's worth more. If they keep track of your earnings and take care of
your withholding taxes, provide training, give you access to retirement
accounts and medical insurance, and so forth, that's worth a lot.

I think that it is better to look at it from the other side. Don't worry
about how much the agent is making, but rather how your net compares to
being a full time employee. For example, suppose that you have comparable
skills to an employee that gets $50K per year. If the employer provides
reasonably good benefits, it probably costs them another $15K in payroll
taxes, insurance payments and retirement contributions. If you have to
cover these benefits out of your own pocket, you have to charge more for
your services. In addition, an employee's salary is guaranteed as long as
they remain employed. If you do not have an agent, you will have to spend
part of your time marketing yourself. Since you can't charge the client
for marketing time, you also have to cover this in your rates.

Now lets assume that you have an agent who keeps you busy 80% of the time
and handles the client billing on your behalf, but provides no other
benefits. In this case, you need to get about $40/hr to be on a par with
the $50K/yr employee.

:Thanks

Best,
        -- Chuck Crayne
-----------------------------------------------------------

-----------------------------------------------------------



Sun, 15 Aug 1999 03:00:00 GMT  
 Ratio between agent's share and consultant's share


Quote:
>Could someone please tell me what is the customary/fair/going ratio
>between the agent's share and the consultant's ?

HEY GUYS, THIS IS AN ASM/370 NEWS-GROUP.
YOU HAVE CONSULTING-RELATED FORUMS TO DISCUSS THESE ISSUES.

THANKS.



Mon, 16 Aug 1999 03:00:00 GMT  
 
 [ 4 post ] 

 Relevant Pages 

1. Ratio between agent's share and consultant's share

2. g95 / Linux / 'shared global COMMON'

3. 'permission denied' loading shared libraries

4. Cross Platform Shared Vars and IBM's APL2

5. Can't Share File on WinME

6. Share global variables in different DLL's

7. Room share at Tools'USA 94

8. Have you an example of the use of sharing dbf's

9. URGENT: Can't share files on a Novell 4.01 Server

10. Working Win95 - Clipper 3.10a and shared 2 Pc's

11. Sharing two PC's

12. I'm looking for examples of accessing shared libraries

 

 
Powered by phpBB® Forum Software