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

The fee charged by Zealancer is for provisioning of qualified introductions to clients who are looking for skilled contractors. It is up to 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 analyses have figured out 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. Still, 63% of all introductions do not result in an assignment. Our research however indicates contractors requires 2.7 introductions average for new assignments. This means, on average, contractors pay fees of about 5 times their hourly rates in order to get assignments.

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

  • Offers professional contractors an effective marketing medium that supports contractors to find contracts.
  • Clients and contractors form a direct relationship dropping the need to constantly keep us informed.
  • There is no incentive to be dishonest or to conceal projects.
  • Contractors with clear and realistic profiles as well as competitive hourly rates are rewarded as they have a higher conversion rate from introduction to assignment. As a consequence, they proportionately pay lower overall fees per contract.
  • The introduction fee is only twice the hourly rate what turn out to be only 1% of the average 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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