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FAQ: Why do contractors have to pay for introductions that do not result in work?

The fee charged by freelancer.international is for the provision of a qualified introduction to a client who is looking for a contractor with your skills. It is up to you, the contractor, to make the most of that introduction. The most successful contractors have been able to clearly articulate what they do best in their profile and have offered their services at a competitive and realistic rate.

Historic analysis has found that, on average, 37% of all the introductions result in active assignments*. This approach offers the contractor a much higher level of success than other acquisition approaches such as going through agencies, direct tenders or self-acquisition. Nevertheless, 63% of all introductions do not result in an assignment. Our research however indicates, on average, a contractor requires 2.7 introductions to secure a new assignment. This means, on average, contractors will pay fees equal to 5 times their hourly rates in order to secure their next assignment.

The introduction of professional contractors to clients has proven to be a very efficient approach which:

  • Offers professional contractors an effective marketing medium that directly helps the contractor find work.
  • The client and contractor form a direct relationship and therefore do not have to constantly keep us informed.
  • There is no incentive to be dishonest or to conceal projects.
  • The contractor with a clear and realistic profile, as well as a competitive hourly rate, is rewarded as they have a higher conversion rate from introduction to assignment. As a consequence, they proportionately pay over overall fees per assignment.
  • The introduction fee is only twice the hourly rate, which on average, is equal to only 1 % of the total revenue generated from the assignment. This is far more cost effective than comparable commission based fee schemes.

*: Average conversion rate. Our most professional freelancers get up to 80%.

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