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Article #6

Re: Discussion: New consultant brokerage paradigm???

#6
From: Stefan Jon Silverman
Date: Thu, 31 Aug 1995 00:00
59 lines
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rmac@well.sf.ca.us (Robert J. McIlree) wrote:

>
>
>> Stefan Jon Silverman  <sjs@sjsinc.com> wrote:
>> This is also why I no longer understand the marketing cost
>>component of the brokerage fee, am I paying for client lunches out of
>>my earnings? I thought that that portion of the spread was supposed to
>>be used for things like up-keep of the database system, client identification,
>>pro-active marketing of consultants into client organizations, and
>>keeping the consultants happy 
>
>
>The broker's gross billing are not your "earnings." You are a 
>subcontractor to the broker, and the end client is not your client. 
>Why, then, is it any
>of your business what the broker does with his cut of the billing, as long
>are you are paid what you agreed to work for, on time, and in full?
>
>
>Brokers have overhead like any other business. Office rent, phones, 
>insurance, etc. Those that think that a broker's cut is pure gravy are
>deluding themselves.
> 

	No argument on this point whatsoever, but, the point I was trying to
make was that in this new paradigm of broker / IC relations where the IC is
doing most of the work in finding new positions (scanning the newsgroups, etc.)
instead of the brokers scanning their databases for candidates and acting
in a proactive manner to contact IC's for postions, the fees should come way
down. The point could be made that by changing the paradigm and forcing the IC
community to do work which was previously done by the broker him/her-self, that
maintaining the same fee structure is imposing an undue burden on the client
paying for the IC's work and increasing the profit to the broker to an 
unrealistic level. If the fees were adjusted downward, IC's who may have been
priced out of a postion (by IC payment + broker's fee) could now get engaged.

	I also do object to brokers maintaining the same fee structure in the
face of changing circumstances on the marketing front. Most other businesses
do change their pricing structures based on changes in the business
environment.

-- 

	Regards,

	b c++'ing u,

	%-) sjs

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Stefan Jon Silverman - President                     SJS Associates, N.A., Inc.
                                                            572 Chestnut Street
Distributed Systems Architecture & Implementation      San Francisco, Ca. 94133
                                                            Phone: 415 989 2741
E-mail: sjs@sjsinc.com                                      Cell:  415 519 3494
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From: Stefan Jon Silverman <sjs@sjsinc.com>
Subject: Re: Discussion: New consultant brokerage paradigm???
Date: 1995/08/31
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