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by rglullis 4842 days ago
If my gross rate goes up by 20% and I need to give you a 10% cut, my net rate increase is 8% (possibly less depending on things like taxes). My lizard brain will either try to cut you out of the loop or just forget about the whole thing.

Also, social capital. If you are already somewhat networked and you start telling everyone to "talk to your agent", I would guess lots of people would turn up their noses. Yes, it should be an absolutely professional relationship and all, but just ask people in Cleveland about Lebron or people in Boston about Ray Allen how they feel about them leaving and you'll see that there is more to money in any kind of relationship.

Another reason: we computer people love automation and streamlining of processes. If this actually becomes a thing, you will start seeing lots of copycats or actual startups trying to emulate parts of whatever process become established. This would just lead to either a new market norm (like the way YC has changed seed-stage funding) or forcing players in this space to go for a new level of risk/reward (the high-6-7 figure earners)

About the "Jewish" part, again I apologize for my ignorance. I think I wrote Jewish when I meant Jew (as in ethnic/cultural background, not religion? Semitic would be better?) and I was just going for last names. Coincidentally, if I had to guess, Rosenhaus sounds like a Jewish name to me.

1 comments

If your bill rate (paid by the company to me as your agent) is 100/hr, and you give me 10% (10/hr), your pay rate is now 90/hr. If I get 'us' a 20% increase, I'm now billing you at $120 - of that I'm taking 10% ($12), leaving you with $108. You just went from 90 to 108 (20% raise). Not sure where the net 8% is from that you mention.

Some might turn up noses if you say 'talk to my agent', because it is a new concept. That is expected. Change is hard.

Regarding the 'Jewish thing' again - let's just put that whole line of thinking to bed at this point, I think you may be digging the hole a bit deeper. I'm not sure that you've offended anyone just yet, but you may be on your way.

The 8% come from the fact that I don't need you to negotiate the base pay. I was going from $100 without you to $108 with you.
Oh. Nice job and congrats on the raise. I think that the recruiter's rate (margin) in that scenario should stay static.