This article explains how much the freelance agent’s margin (commission) is when introducing a job, and how the service works. What you should be concerned about when using a freelance agent is the intermediate fee. The higher this fee is, the less the engineer’s take-home pay will be.
- How freelance agents work
- Freelance engineer margin structure
- What is the appropriate market price?
How freelance agents work
Freelance agents are recruitment and intermediary companies that introduce work to programmers, system engineers, infrastructure engineers, and data scientists. Agents introduce jobs to engineers. What you should be aware of at that time is that the following settings and mechanisms exist for management. By signing a contract, engineers will receive free support and will be able to receive many jobs in the industry. We recommend using this service if you do not have direct connections with the end user.
Work content varies
The job content varies depending on the agent. Job types range from programming, infrastructure (network engineer, server engineer), data scientist, web director, writer, designer, and even marketing. This is a system that introduces desired jobs to engineers according to their job skills. Once you clear the interview, you will be able to confirm the contract and start work on the same day. This can simplify your job search. Salary and income vary depending on the position.
Jobs range from major companies to venture companies.
The management company handles a variety of projects, from major companies to venture companies. Even beginners can get specialized jobs in major companies. It is attractive because registrants can aim for a large increase in income by acquiring qualifications etc. We also have welfare systems and businesses for individuals, and we provide solid support for tax return procedures by introducing tax accountants with a proven track record. It will also save you the time and hassle of calculating taxes at work. The burden on human resources is small and the treatment is top-class, so it is highly rated by users.
Side job possible
Freelance consultants also introduce work to company employees. For company employees who have Saturdays and Sundays off, the person in charge also provides work for one to two days a week, and engineers receive compensation for providing services on Saturdays and Sundays. You can also freely choose your work style, from fully remote to permanently stationed at a customer site, depending on your goals. The point of introduction is whether you can handle the situation and whether you have experience. It doesn’t really matter how many times you change jobs; your skills are important.
There are short term and long term
Work can be short-term or long-term. There is also a one-off contract period. Engineers will receive requests and perform work that suits their work style. The work includes programming, server construction, network design, data analysis, and more. This is a system in which compensation is determined according to the difficulty of the work. An agent will handle the sales activities on your behalf, so you can introduce the projects you have for free. We provide a great service and even do it for free.
It will be a business outsourcing contract.
Once the work order is confirmed, the engineer signs a work outsourcing contract with the agent. Costs and remuneration will be negotiated at this time. The amount may change depending on your performance after employment. We have a large number of development projects in stock. You will be introduced to your next job once your job is finished, so if you consult with us, your next job will be decided in a timely manner. You can rest assured that you can build a great career.
Inexperienced people are at a disadvantage
Basically, inexperienced engineers will be at a disadvantage when it comes to referrals. The reason is that introductions from agents are basically based on the assumption that they will be able to work immediately. But that doesn’t mean it won’t be introduced at all. If you register with multiple agents, you may receive referrals from unexpected sources. Therefore, we recommend that you just register and take advantage of it. In general, the less experience you have, the less you earn.
Freelance engineer margin structure
The margin structure for freelance engineers is as follows. When it comes to fees, people tend to have a bad impression of them being cut corners, exploited, or tricked. As a freelance engineer, the value of using it will differ depending on whether you consider it a necessary expense to be able to stably participate in projects, or whether you consider it a risk. What is important is the commercial flow.
Margin (fee) mechanism
When a business outsourcing contract is established and the fee is transferred to the engineer, the system is such that the agent receives a percentage of the fee as a result of the transaction. The flow of margin generation in the market is based on the following steps.
- A client company orders a job for 100,000 yen.
- Agent receives 20% margin
- Compensation paid to freelancers is 80,000 yen
In this way, freelance engineers do not always receive all the remuneration that they receive from outsourcing work, but the system is such that the fee is transferred to the agent after the fee is collected by the agent. Of course, I would be happy to pay more.
In some cases, margins are not disclosed.
In some cases, freelance agents’ margin rates are not disclosed. However, there are some cases where it is made public. The general market margin rate is around 10% to 20%. An agent’s margin rate is not determined by law and varies from agent to agent. Therefore, engineers will benefit if they register where the agent’s margin rate is low.
When does margin occur?
Margin is a hassle for engineers, but I will explain when this fee occurs. Initially, the agent will refer the latest deals acquired through the client to the engineer at a fixed, adjusted unit price minus the commission. In other words, from the engineer’s point of view, at the time of being introduced, the amount minus the margin fee has already been shown in the contract. Finally, you will start working with this amount.
There is a fee = not exploitation
You can also think that you are not being compensated appropriately because of the commission. However, the fees are not malicious, fraudulent, or exploitative. The reason is that you can think of outsourcing sales by paying a fee in order to do work that you can’t get on your own. Some agents have welfare programs for freelancers, and a monetary fee is required for that purpose.
Beware of intermediary companies
Regarding margin fees, the more intermediate companies are involved, the more fees will be charged. From an engineer’s point of view, by registering with multiple agents, they can detect high margin fees. In fact, if you register with multiple agents, you may be introduced to the same project, but if Company A is 1 million yen and Company B is 800,000 yen, then Company B has a company intervening in between. I understand. If the job content is the same but the pay is less, there is no advantage for engineers. Register with multiple agents as much as possible.
What is the appropriate market price?
Now, regarding the most important fee, how much is appropriate? Generally speaking, an average of 10%, 15% to 20% is appropriate. If the price is higher than this, it means that other companies are intervening in the commercial flow, which is a disadvantage for engineers because the risk becomes very large. I prefer somewhere as cheap as possible.
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