Re:Ask HN: Where are the good platforms for contract work?
by pc86 on Tuesday September 27, 2022 @10:03PM
(#33003477)
In what universe should the agency get 70% while the person doing the work gets 30%?
Re:Ask HN: Where are the good platforms for contract work?
by pottertheotter on Wednesday September 14, 2022 @01:16PM
(#32840207)
Yeah, 5-15% sounds awesome. I was recently considering doing some project-based work through a consulting firm and their cut was more like 60%. Wouldn't have to do any sales, but that seems absurd.
I wonder if it is a US thing of employees having too little power. A couple years ago I heard an interview on Fresh Air [1] where a woman talked about her experience cleaning houses. She said she at first made $8.55/hour while the agency charged clients $20/hour (later it was $9.25 and $25, respectively). That means the agency got 57% (63%). I told my wife if we ever hire someone to clean our house I'm asking how much the person doing the work gets paid, and if it's not above something like 70% of the total, we're not doing it.
Re:Ask HN: Where are the good platforms for contract work?
by WHATDOESIT on Thursday September 15, 2022 @03:38AM
(#32848482)
In Europe it's very usual to charge consulting rates that are double what the employee is paid. After the employer-paid portion of taxes and insurance it's necessary, the actual margin is just around 15-20% then.
That's nothing to balk at. In the US, being a contractor is like selling wholesale, and being an agency is like selling retail. I'd expect the contractor cut to be 30%-50%, and the rest to go to the agency.