Agency fees 3

[sean01]

Hi all,

Recently an agency I use for getting work has increased its 'administration and marketing' fees upto 25% from 15%. (I use this agency to market my company and hunt down leads for new work for me). This fee is normally paid by the client. This agency has over the years been a good source of revenue for me and has just recently got me a contract with a local company. Howevever, while on this clients site today - they advised me that they will not pay the increased rate, and instead, would like to come to me directly for the service they require, without going through the agency.

I have said that if they have a problem with the agency fee - they should approach the agency directly - rather than try to negotiate a decrease in the rate through me. I have also indicated that if they could guarantee a steady stream of work, I could reduce my hourly rate, thereby offsetting this increase in cost. However, these options, they are still insistant that they source the work directly with me - rather than through the agency. My dilemna is that I don't want to lose the work, but I also want to protect my relationship with the agency - any ideas ??!!!?


sean

 

[aspearin1]

Encourage your client to seek another 3rd party agency which has fees more in the range they are comfortable with. If the client is extremely pleased with your performance than they may elect to stress an interest to this new agency to continue to work with you. This may require a new contract with the client. However, you would keep your relationship with the agency. Retain a contract with your client, and add another agency to your network. It's a gamble, and in an ideal world, it would work. It is, however, less risky than steeling the current agency's business. If you get no substantial immediate gain from the client dropping the agency, you are on firm ethical ground.

aspearin1

 

[greenone]

Perhaps the client could "buy out" your association with the agency. For a one time fee paid to the agency, they gain the right to contract with you directly. The agency gets some gain, the client eventually saves money, and you preserve your relationship with both parties.

greenone