How we're building a fairer freelance recruitment market

 (1) A Simple Pricing Model

The pricing model used by recruitment agencies and project platforms is outdated and unfair.

How Agencies / Platforms Work:

Agencies/Platforms will take a freelancers day rate and multiply it by a fixed % to work out their 'agency fee'. This % of day rate is charged on top of the freelancers day rate to the client as the 'agency fee'. Typical agency fees range from 20%-50%.

This leads to:

- Clients needing to set a higher project budget to attract quality talent.

- Freelancers earning a lower day rate.

Here's an example of these unfair fees for a 6 month project:

Project Length: 

6 months (132 working days)

Client Daily Budget: 

£900p/d

Agency Fee: 

25% (Industry Average)

Total Budget:

132 days x 900p/d = £118,800 

 

  • What the freelancer is making 80% 80%
  • What the agency/platform is taking 20% 20%

What the freelancer makes:

£95,040 (£720p/d)

Total 'Agency Fee':

£15,840

 

We believe there's a fairer way to redistribute this agency fee of £15,840 - either by paying freelancers a higher day rate or saving clients some money. Ideally we can do both - see below.

BBEco Fee Structure: A simple flat fee of £50p/d for each project day completed by the freelancer.

 

Here's the same example using the BBEco pricing structure

Project Length: 

6 months (132 working days)

Client Daily Budget: 

£850p/d

BBEco Fee: 

£50p/d

Total Budget:

132 days x 850p/d = £112,200 

The client is saving £6,200 by reducing the daily project budget from £900p/d to £850p/d.

 

  • What the freelancer is making 94% 94%
  • What BBEco is taking 6% 6%

What the freelancer makes:

£105,600 (£800p/d)

Total 'BBEco Fee':

£6,600 (£50 x 132 days)

The freelancer is making an extra £10,560 for exactly the same project by charging a higher day rate.

We believe in Dynamic Pricing

When our flat fee proves to be more expensive than using agencies/platforms due to lower day rates (sub £500p/d) - we'll reduce our fees through a dynamic pricing model to ensure savings continue to pass along to clients and freelancers. 

(2) A Focus on Quality 

We value quality over quantity when it comes to building our freelancer network. To us, it's all about having a strong relationship and knowledge of each and every one of our freelancers. Who they are, why they freelance? Only then are we able to establish meaningful client - freelancer relationships and build a trusting partnership.

We manage the quality of our network by:

Vetting every member

We review every new membership application to the network by hand.

Staying Connected

We regularly check in with our freelancer network for coffee chats or phone calls. 

Valuing Referrals

The quality of our network is driven by members referring and sharing what BBEco is doing.

(3) Building for the Future...

Over time, we want to develop infrastructure to enhance the freelancing mode of work. We'll do this through developing internal initiatives, as well as partnering with other start-ups working in this space - building an ecosystem to make freelancing a long-term option for professionals and not just a short-term 'gig'.