FAQ: Why are the contractors from Freelance-Market cheaper than at any agency?

Clients pay optimal rates because the relationship is directly between the contractor and client removing the need for an expensive agent to act as ‘broker’. Typically, on a 3 months contract, the Freelance-Market fee to the client is 2.5% of the contractor's total turnover. This compares very favourably to the fees charged by an agent, of between 10-40%, on the equivalent turnover. Client’s are also able to buy better in as they are able to directly compare the contractor’s hourly rates against others available in the market at the time. On the other hand, the contractor enjoys a higher utility rate resulting in a net increase in annual income.

The following example (a programmer with 60% work load) shows how utilisation and hourly net income can improve:


Example Calculation

Conventional

with Freelance-Market

Acquisition expenses (p.a.):

800 hours

100 hours

Time on project (p.a.):

1,200 hours

1,900 hours

Total (p.a.):

2,000 hours

2,000 hours

Hourly rates:

AU$ 80.00

AU$ 60.00 (-25%)

Gross income (p.a.):

AU$ 96,000

AU$ 114,000

Expenses for acquisition:

AU$ 3,000 (expenses)

AU$ 1,140 (10 introductions)

Net income (p.a.):

AU$ 93,000

AU$ 112,860

Net hourly rate:

AU$ 46.50

AU$ 56.43 (+ 21%)

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