[svlug] Re: How to be a Contractor? - incorporating

J C Lawrence claw at kanga.nu
Fri Oct 8 22:09:20 PDT 2004


On Fri, 8 Oct 2004 21:13:23 -0700 
Rafael Skodlar <raffi at linwin.com> wrote:

> I wonder if there is a way to figure out how much they skimm off the
> top? I'm getting conflicting reports from individuals as well as from
> the search on the Internet. Any insider tips?

There's no secret.  The business model is old and fairly well known as
to costs and requirements.  Assuming a standard agency using at-will W2s
and which doesn't attempt long term or project staffing, and doesn't
have green card handcuffs, the numbers are fairly simple.  In general
anything under 25% and they're losing money on the contract and anything
over 45% and they're sitting fat.  Yeah, that range is broad, and it
also scales somewhat with the bill rate.  Most sit in the mid and upper
30% range with 36% - 40% being particularly common.

-- 
J C Lawrence
---------(*)                Satan, oscillate my metallic sonatas.
claw at kanga.nu               He lived as a devil, eh?
http://www.kanga.nu/~claw/  Evil is a name of a foeman, as I live.




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