The Agency Issue Returns

Subject: The Agency Issue Returns
From: Andrew Plato <intrepid_es -at- yahoo -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Wed, 18 Jul 2001 14:52:29 -0700 (PDT)

The agency debate is alive again. Just a few comments and then you can go
back to being angry.

Theoretically, it shouldn't matter what the agency gets. If they pay you
the rate you want, what do you care if they mark you up 10% or 10000%.

I know what you're thinking..."well if the agency bills $120 per hour, why
can't I make $120 per hour..."

You can: start your own consulting company, advertise, market, network,
get clients, sign contracts, pay employees, deal with accountants and
lawyers, pay corporate taxes, purchase insurance, build a company
infrastructure, work 90 hours a week, etc...

If all you want is to show up, work 40 hours and go home at 5pm - you're
going to have to pay somebody else to manage the contracting aspects of
contracting. Agencies provide that service. They handle everything and pay
you a nice check each week so you can go home at 5pm and live your life.
Moreover, many large firms simply won't work with independent consultants.
They want an established, legally protected firm to handle their
contractors. So you couldn't get that $120 an hour even if you tried.

The margin that agencies make should be their own business. The way I look
at it, if an agency paid me the hourly rate I wanted - what do I care what
they were able to get out of the client. That is their business. My job is
to write the docs and get the project done. If the client is willing to
pay big margins - so what. That's between the agency and the client.

Remember, the client is the agency's client - not yours. You are there to
do a job, not build a worldwide consulting empire.

If you want to build a worldwide consulting empire - go do it! But don't
expect agencies to give you the raw materials to basically compete against
them. Nobody in their right mind is going to hire you if your sole
intention is to steal the work away from them.

Back to your regularly scheduled TECHWR-L

Andrew Plato


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