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Contractors Working for an Agency

morpheus_101
Active Member
Mary Joy V Member Since: Mar 4, 2011
1 of 11
What are the pros and cons to snapping up some agency contractors and finding work for them? How much it seems we could mark up their rates and still have employers be interested? Are contractors really interested in an agency finding work for them?
robert_seal
Active Member
Robert S Member Since: Aug 5, 2011
2 of 11
There are certain types of people all over the world that want to work but are not skilled in self-marketing, or are not comfortable or even good at writing cover letters or finding contracts on their own. These are the people that I imagine benefit most from an agency finding contracts for them. An agency that is well managed can maintain a reputable profile and bring a sort of brand-recognition and client retention with them; opening them up for otherwise unavailable work. I have never bothered with agencies myself but I've considered starting one. The drawback for me is that it removes the very reason I love freelance work; freedom. It implies a certain level of responsibility for others, both in terms of the quality of the work and work availability.
t-hall
Community Guru
Tony H Member Since: Nov 10, 2011
3 of 11
I've thought about it as well... as still am, but really unsure about the financial feasibility of it all. What is considered fair and what will keep the contractors very happy in terms of remuneration? As freelancers ourselves, we are responsible for our own quality of work. What about the quality of others? If the quality is not acceptable by the client, and they refuse to pay, does the agency still owe the time worked to the contractor? Is it really worth it? How much time would it take to manage all of the HR, project management, customer service, and ongoing searching for contracts? What limitations and liabilities arise from operating on multiple freelance platforms? I'm confident I could put together a respectable agency, but I'm unsure if it's even worth it with all these considerations.
robert_seal
Active Member
Robert S Member Since: Aug 5, 2011
4 of 11
In terms of contract fulfillment and recruiting, the positive of oDesk is that you can allow freelancers within your agency to work on their own, in addition to what you provide. Thus, work provided by your agency is merely supplemental. The negative of course is that once a project is accepted, it cannot be treated as supplemental. If you do not allow your freelancers to work on their own, then you are responsible for keeping them busy; another negative unless you have the means to do so. If this means recruiting a hiring manager then you have another cost associated to just owning an agency, which unless your agency serves a specific niche, would have to be a contractor that could sell on multiple levels. In terms of project payment, I do know that all work done through the agency is paid to the agency. The agency is then responsible for when and how much the contractor gets paid, regardless of project payment size. I think the type of agency would vary the difficulty greatly, but I'm definitely with you in thinking that the cost of simply running an agency would soon outweigh any benefits over freelancing for yourself. I am personally way to concerned with the quality of my work and the level of client satisfaction to rely on someone else to provide that. I fool around on the forums but when it comes to business, it's time for business.
t-hall
Community Guru
Tony H Member Since: Nov 10, 2011
5 of 11
I think I may create one. Need to do a little homework and strategy planning to test feasibility first though. There have been things going through my head for the past year that I believe would make it the #1 agency on oDesk easily given a few months... but not sure about the other platform as my experience with most of them is next to nothing.
mdgrove20
Active Member
Mark G Member Since: Jul 3, 2015
6 of 11

Hi Paul. You have some good tips for freelancers. I'm new to Odesk, and getting more work. .

 

Question for you though. If I start an angency just acting as a middleman between free lancers and contractors, what percentage do I get? I don't want to be an employer, just act as a go between. I think that doing both freelancing and acting as an agent will make me more money.

 

Do you know how that all works? 

 

thanks

 

Mark Grove canada

kochubei_valeria
Community Manager
Valeria K Community Manager Member Since: Mar 6, 2014
7 of 11

Hi Mark,

 

You need to discuss and agree upon the percentage with your agency freelancers. Basically, the funds paid by the clients for work will first go to the agency account and then you will be responsible for paying your freelancers.

~ Valeria
Upwork
kadutskyi-mykola
Active Member
Mykola K Member Since: Feb 11, 2017
8 of 11

Hi, Valeria

 

What do you mean saying that agency owner is responsible for paying teammembers? If I agenct owner, should I pay my teammebers outside of Upwork? Is it possible to do that in upwork?

kochubei_valeria
Community Manager
Valeria K Community Manager Member Since: Mar 6, 2014
9 of 11

Mykola,

 

Please, see my response to your comment here.

~ Valeria
Upwork
priyanga777
Active Member
Pushpika P Member Since: Oct 21, 2013
10 of 11
Can we hire a freelancer as temporary first,(where he can work individually), and then as the agency gets more and more work, well reputed, then can we hire the freelancer permanently, is it possible if the freelancer likes it?
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