FAQ: Why are the freelancers from Zealancer cheaper than at any agency?
Clients pay optimal rates because the relationship is directly between the freelancer and client removing the need for an expensive agent to act as ‘broker’. Typically, on a 3 months contract, the Zealancer fee to the client is 1.0% of the freelancer's total turnover. This compares very favourably to the fees charged by an agent, of between 10-40%, on the equivalent turnover. Clients are also able to buy better in as they are able to directly compare the freelancer’s hourly rates against others available in the market at the time. On the other hand, the freelancer enjoys a higher utility rate resulting in a net increase in annual income.
The following example (a programmer with 60% work load) shows how utilisation and hourly net income can improve:
Example Calculation | Conventional | With Zealancer |
Acquisition expenses (p.a.): | 800 hours | 100 hours |
Time on project (p.a.): | 1,200 hours | 1,900 hours |
Total (p.a.): | 2,000 hours | 2,000 hours |
Hourly rate: | NZD 80.00 | NZD 60.00 (-25%) |
Gross income (p.a.): | NZD 96,000 | NZD 114,000 |
Acquisition cost: | 0 (not considering expenses for travelling, lost time, etc,) | NZD 1,140 (10 introductions) |
Net income (p.a.): | NZD 96,000 | NZD 112,860 |
Net hourly rate: | NZD 48 | NZD 56 (+ 17.5%) |
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