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Contractor Club – Making Agencies Redundant?

New service launches which cuts out the need for a recruitment agency.

The expansion of the internet through social networking sites has created many new tools available to find suitable contractors. Despite these changes however, many contractors and organisations still use a traditional recruitment agency model to try to meet their needs. This agency model seems both dated and costly, but is often seen as necessary due to the lack of a suitable alternative intermediary.

There are many obvious flaws presented by the agency approach and one of them is that on the eventual signing of a contract, a significant cost is subsequently charged by the agency for this “service”, even continuing at the same high rate when a contract extension occurs!

With agencies adding in some cases up to 25% to the cost of a contract, in these rate conscious times many organisations and contractors must start to question why there is not a better way. Is there not a smarter approach to obtain both relevant skill sets but to also keep costs in check? Now that better way has arrived and its name is Contractor Club. This is a new concept which offers organisations and contractors a flexible yet cost effective service for the next assignment.

Contractor Club combines social networking with a business relevant approach. This is achieved by individuals who have often had experience within the contract creating organisation acting as a referrer (the “Placer”) when a new contract is required. The immediate benefit of this is someone who knows the organisation is involved, rather than a distant agency approach.

Contractor Club provides a system for suitable contractors to help meet an organisation’s requirements, following successful recommendation by the Placer. Costs are a fraction of the legacy agency model, at just 10% of the contract for up to 90 days. No fees are payable for any additional contract extensions beyond 90 days with the same organisation, creating considerable benefits. The 10% fee is split, with 5% going to the Placer, 4% going to the Contractor Club themselves (to cover administration) and 1% to any Contractor Club member who recommends a new contract creating member. As these costs are usually a fraction of what an outdated agency model charges (even under a PSA type arrangement), the result is a win for both contractors and any contract creating organisation. Contractor Club – the contractor solution that works for you.

To register with Contractor Club you will be asked for a referral email. The good news is that Contractor Weekly is happy to act as your nominator; please use

By Contractors: For Contractors: Through Contractors

By Troy Stevens


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2 thoughts on “Contractor Club – Making Agencies Redundant?”

  1. Jeff Parker

    Sorry I seem to be missing the point here.
    What exactly does the contractor club do to justify its 4% fee?
    At a 350/day rate that’s in excess of £800 over 3 months.


  2. Rob

    Let me declare my interest immediately -I am responding here as Club founder.

    Firstly the site needs ongoing development. In addition members posting and members applying need support the first time through. We sit in an office, which has a rental charge.

    On a 9 months contract the Club gets the equivalent of 2% (4% for half, 0% for half). An Agency gets 20%. The commission applies for 90 billed days, not 3 months, so the Club would bill £1,260 over a 9 months contract. An agency charging 20% would bill £12,600.

    You can either argue the £1,260 is too much or focus on the difference between £12.6k and £1.3k. I’d suggest the distaste is that you see the £1.3k, you don’t see the £12.6k.

    It would be great if it were for free – but I stopped contracting in July to give the Club more momentum … and the bills haven’t stopped.

    Hope that helps

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