Contractor Rate Markups

Discussions center on software development contracting models, including agencies marking up contractor rates to clients, complaints about middlemen taking large cuts, and strategies for freelancers to charge flat rates or act as their own agencies.

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latacora.com W2 OP YMMV XL HN jollyrogertelco.com AWS TIMES MUCH contractor charge hr hourly contract rate hire developer developers client

Sample Comments

m83m Jun 30, 2017 View on HN

The best solution is to become a contractor with this employer, and charge a flat rate per result or per week/month.

midnightmonster Jul 12, 2011 View on HN

I'm an independent web software developer. I work for various clients on an hourly or per-project basis. The highest rate I charge is 50% higher than the lowest rate I charge. If I had an agent that could keep me busy with the higher rate jobs--increasing my average hourly rate and giving me more hours to work because I'd spend less time chasing down gigs--I'd be more than happy to pay him/her 10%.

commonsense Feb 5, 2010 View on HN

There are multiple business models. Witness:1. They take % of base first year salary on W2 - their incentives are aligned with yours. A good deal.2. They take % of base hourly rate - their incentives are also aligned with yours. A good deal.However:3. They receive a flat hourly cap - their incentives are opposite yours. They're trying to fuck you.4. Flat retainer - their incentives are technically neutral, but the lower they get you onboard, the better they look because their

helicone Oct 24, 2025 View on HN

why can't I do both?if nobody else has the same problem I'm just gonna hack together some scripts, call it a day, and charge them like a contractor.if the problem is more generalizable then it's worth hunkering down and building something more robust, and charging them like a vendor.at any rate, part of their problem is people are leaving before they get a chance to talk, and not enough people are talking to them. bit of a catch-22 for them. why not see if the well runs d

learnstats2 Apr 10, 2015 View on HN

Because somebody already hired those people for a fixed wage and is smart enough to charge us a percentage for it?

sharemywin Jun 8, 2012 View on HN

I would say network with developers/contractors that don't want to do that work. Let them bring you in mark up your services and everybody wins.

throw8932894 Jan 25, 2022 View on HN

A already have enough work on $X/day. If they need to be compliant and treat me like their corporate drone, I am happy to comply. I can charge X*5 and spend one week working on my opensource project.This is basic marketing. Airbnb, Facebook, Amazon etc are allowed to do shady stuff, but single contractor should be clean as lilium?

PaulHoule Nov 19, 2021 View on HN

I worked for a while at web design/software dev shops that had a business model of "we charge $200 an hour to the client and pay somebody $70 an hour to do the work." It's not as bad a grift as it sounds because the firm adds project management, tends to give some rework for free, and have to pay for sales and marketing out of it. (Some of the the project management is a real addition, but some is garbling of communications like the "telephone" game. If you cou

pc86 Dec 28, 2020 View on HN

Yes absolutely, I've been on both sides of this (the contractor being "sold" as well as employing short-term contract developers through an agency like this). I will say though that a couple of times where I was able to find out how much the client was paying for me, there wasn't as big of a gap as I had expected - I think the largest was about 6%, and when I was a lead my employer was losing about $15/hr on me. I have to assume the team as a whole was profitable enough

davinic Sep 24, 2019 View on HN

I am a long-time dev contractor (not with Google), and I am sick of staffing middlemen that keep 40%+ of my hourly rate and hold the money an extra month, simply because they had access to the client's contractor system. It's robbery.