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Comment by brtkdotse | Hacker News Reader

They're alive and well in Northern Europe at least. I'd say a majority of contracting work is done through them since they somehow get exclusivity deals with big clients like H&M, Scania, SAAB and the like. They charge around 5-15% (almost always 10% though) of every invoice.

Before you balk at the number, consider that during my almost 5 years as a solo contractor I've spent _zero_ hours doing sales. None. When I want a new assignment I send one email and within a week or two I have a 6 month contract.

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Are they contract agents, tho, as in, you (the developer) employ them to find you a gig? Or are they staffing agencies, as in, you work for them, they invoice the client and pass the income minus their fee to you?

I've seen plenty of the latter but hadn't heard of the former before.

From my experience, it's practically always middlemen. I don't see a problem though - this is easier for me. I found a few good recruiters that I keep in contact with, they know my requirements and anytime I ask they have a good, well-paid project for me. I don't see the practical difference.

> They charge around 5-15% (almost always 10% though) of every invoice.

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.

In what universe should the agency get 70% while the person doing the work gets 30%?

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.

[1] https://www.npr.org/transcripts/689611873

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.

The end client is usually the one hiring and paying these people though, not the contractor.

In a way they are operating as a match maker and making a living by taking a percentage of the day rate, so it is partly perception. However, I think it's fair to say that they are hired by and represent the interests of the end client rather than the contractor.

Huh, I’ve just moved to Northern Europe and had no idea this was a thing here (from London). I guess I’d better start Googlying.

Where do you find these contract agents? Or which are some popular ones?

I don't think they exist, anymore.

Whenever I mention them, I'm scoffed at, like I believe in unicorns.

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