

Home List Rules User Help Fun Stuff Subscribe Websites Links eGroups Updates		Agency Contracts for Freelancers: Q & A Q: Have any of you (editors or others) accepted projects from recruiters or agencies? A recruiter for FT and contract, onsite and offsite jobs recently called me about a contract position—I'm still not sure where he got my résumé, but he had it—and I wondered, What the dilly-o? A: I've worked through agencies before, and my experiences have mostly been good. It's important to check out the agency and the contract they want you to sign. I highly recommend a book by Peter Kent called Making Money in Technical Writing. It may be available from your library. Even though you aren't a technical writer, this book has seven chapters on working with agencies, including an entire chapter devoted to negotiating with agencies. Key issues for me are The rate. Not how much is the agency getting but how much is the agency paying me. Some folks get bent out of shape about the amount of markup the agency makes. The way I look at it though, if the agency is paying me what I ask for, but can get twice as much from the client, it's up to me to ask for more next time. But in order to maintain that attitude, I never accept an agency rate lower than what it takes to keep me happy. In general, agencies have the reputation of paying very low rates, and that's certainly true for many agencies, but not all. The relationship with the agency. I only accept 1099 positions, but a lot of agencies want to pay on a W-2 basis (USA tax jargon). What W-2 basis means is that I would actually be an employee of the agency. I won't do it, but other freelancers are happy that way. The non-compete clause. There is always one, but it will vary both in terms of duration and of scope. To me, a year is reasonable, but other people feel even 6 months is excessive. As far as scope goes, you have to read it carefully and decide for yourself. I think if an agency introduces me to a client, and I do good work for the client, and then, after the initial contract is finished, the client wants to use me again, it is reasonable for the agency to have some compensation for introducing me in the first place. There was one non compete that I didn't sign that basically said I wouldn't work directly for any current client of the agency or any client they were trying to line up. We changed that to I wouldn't work for any of their clients that they had actually introduced me to. The payment conditions. If I'm working directly for a client, I'm taking my own chances that they won't pay on time or even at all. If I'm working through an agency, I expect the agency to take that risk. That's part of why they earn something for every hour that I work. It is not acceptable for an agency to pay me when the client pays them. They need to have a schedule (no more than 30 days after a pay period ends, preferably 15) that they pay me on. It doesn't matter if the client pays them in 45 days or not at all. (Of course if the client isn't paying them, I expect to be called off the job. But I still expect to be paid for every hour that I have worked.) The agency reputation. There are some sleaze bags out there, and the sleaze can rub off. The work itself and the proposed client. I consider an agency job as carefully as a direct job in terms of whether or not I want to do it. All things being equal, I prefer to work directly for my clients. But some clients insist on an agency. And some interesting work is only available through a particular agency. I'll be glad to answer specific questions, if you have any. Julia Land (jalnd@earthlink.net) See also the NWU work-for-hire contracts page.

Agency Contracts for Freelancers: Q & A

Q: Have any of you (editors or others) accepted projects from recruiters or agencies?

A recruiter for FT and contract, onsite and offsite jobs recently called me about a contract position—I'm still not sure where he got my résumé, but he had it—and I wondered, What the dilly-o?

A: I've worked through agencies before, and my experiences have mostly been good.

It's important to check out the agency and the contract they want you to sign. I highly recommend a book by Peter Kent called Making Money in Technical Writing. It may be available from your library. Even though you aren't a technical writer, this book has seven chapters on working with agencies, including an entire chapter devoted to negotiating with agencies.

Key issues for me are

The rate. Not how much is the agency getting but how much is the agency paying me. Some folks get bent out of shape about the amount of markup the agency makes. The way I look at it though, if the agency is paying me what I ask for, but can get twice as much from the client, it's up to me to ask for more next time. But in order to maintain that attitude, I never accept an agency rate lower than what it takes to keep me happy. In general, agencies have the reputation of paying very low rates, and that's certainly true for many agencies, but not all.

The relationship with the agency. I only accept 1099 positions, but a lot of agencies want to pay on a W-2 basis (USA tax jargon). What W-2 basis means is that I would actually be an employee of the agency. I won't do it, but other freelancers are happy that way.

The non-compete clause. There is always one, but it will vary both in terms of duration and of scope. To me, a year is reasonable, but other people feel even 6 months is excessive. As far as scope goes, you have to read it carefully and decide for yourself. I think if an agency introduces me to a client, and I do good work for the client, and then, after the initial contract is finished, the client wants to use me again, it is reasonable for the agency to have some compensation for introducing me in the first place. There was one non compete that I didn't sign that basically said I wouldn't work directly for any current client of the agency or any client they were trying to line up. We changed that to I wouldn't work for any of their clients that they had actually introduced me to.

The payment conditions. If I'm working directly for a client, I'm taking my own chances that they won't pay on time or even at all. If I'm working through an agency, I expect the agency to take that risk. That's part of why they earn something for every hour that I work. It is not acceptable for an agency to pay me when the client pays them. They need to have a schedule (no more than 30 days after a pay period ends, preferably 15) that they pay me on. It doesn't matter if the client pays them in 45 days or not at all. (Of course if the client isn't paying them, I expect to be called off the job. But I still expect to be paid for every hour that I have worked.)

The agency reputation. There are some sleaze bags out there, and the sleaze can rub off.

The work itself and the proposed client. I consider an agency job as carefully as a direct job in terms of whether or not I want to do it.

All things being equal, I prefer to work directly for my clients. But some clients insist on an agency. And some interesting work is only available through a particular agency.

I'll be glad to answer specific questions, if you have any.

Julia Land (jalnd@earthlink.net)

See also the NWU work-for-hire contracts page.

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