I’ve consulted for many years and usually had good success going through recruiters, third parties, etc. They normally provide a valuable service of “buffering” your corporate consulting pay essentially allowing you to get paid more frequently and also allowing a large company (such as an investment bank) to contract to several smaller corporations without dealing with each individually. My warning comes from this relationship and the leverage that such a large entity has with both parties once they’ve established…errr entrenched themselves into the system. Whenever the middleman has too much leverage he can actually screw both parties and squeeze out all sorts of profits through junk fees, delay of payment (to gain interest on the float), fee increases, etc. Not only is it a complete scam that I wait on average 45 days to get paid for my work, this “middleman” now wants $2.50 out of every $100 I make! We call that taxation where I come from and my only choice is to walk away but wait…that can’t be done because my “employer” only works with this 1 company so I’m forced to bendover and accept this increase. Just remember this question when you get it: Do you have a preferred vendor? My new answer is NOT ZEROCHAOS…please let me know if any of you have had similar issues or if I’m way off base.
The following is an email from my “middleman”, ZeroChaos (can’t you just hear the sarcasm in the email?):
Dear Valued Partner–
Pursuant to the attached notification, the ZeroChaos administrative fee for all placements made at “Feral Wench” is now 2.50% for each billable hour. Continuing to provide Services on any ZeroChaos assignment at “Feral Wench” after December 19, 2008 will indicate Supplier’s acceptance of these terms. All invoiced time worked after 12/19/2008 will incur this updated administrative fee. Please direct any questions to the Workforce Support Services Team at 877-937-6242 Option 1 or email@example.com.
ZeroChaos Workforce Support Services