Agency

[llim]

Hi all, I currently do admin for a few family members who are tradesmen, and it's logistically a bit of a nightmare as I'm handling emails, phone calls, booking appointments, and invoices for them. The clients they work for know they are talking to me, but I have to log in to different email accounts, etc so I want to become an agent who handles all the admin via one email, while they still invoice the work through me. I am under the impression that if I work as an agency, my turnover is based only on the commission I earn, not on the amount of work that goes through me as an agent, which would be quite high for 3/4 tradesmen. I do not receive a commission percentage; I only receive a set fee for each job. Am I right to understand that I can operate this way and that my turnover will be only the commission, not the total turnover of the whole job? If this is possible, how do I make it work? Do I just pass the invoice on to the contractor, or do I invoice the client and the tradesmen invoice me? Also, does it matter that I am taking a flat fee rather than a percentage?

 

[Scalloway]

You need to make it clear in all your documentation that you are acting as an agent then you can declare just the commission as your income.

 

[Frank the Insurance guy]

Be wary of invoicing the end customer through your agency - this may create a liability for you (eg. if there is an issue with the contractor, or the contractor goes bust, you may be liable). Best to raise invoices from each of the contractors on their headed paper (Which I assume is what you are currently doing). You will then need to raise an invoice to the contractors for your flat fee.

I see no difference between charging a flat fee or % commission - either works.

Also worth looking at Professional Indemnity Insurance - what happens if you make a mistake (eg. not invoicing or invoicing the wrong amount and a contractor holds you liable for the error and lost income?).

 

[Paul Kelly ICHYB]

Unless you calculate a reasonable financial incentive to change to this agent status, you are probably better staying as you are - it is also better for your clients/family, as it is their brand that stays in the end clients face.

Using their emails can be a bind, but maybe if you had a simple system to import the emails into, say, a CRM, where you could manage everything with one login.

 

[gpietersz]

Use an email client that can handle multiple accounts. I use Thunderbird for my own multiple accounts.