FAQ: Why does Zealancer charge contractors a flat-rate introduction fee instead of sales commissions?

A flat-rate introduction fee is far cheaper for the contractor. Removing the need of ongoing checks and accounting saves time and money that Zealancer forwards to its contractors, that is a direct consequence of Zealancer' transparent business model. The fees charged by Zealancer represent only 1.0% of the total income generated by introductions. This is much less than 10 - 40% ongoing sales commissions charged by agencies over the entire duration of projects (including extensions).

The flat-rate fee per introduction has some clear advantages:

  • There is no need for ongoing reporting in order to calculate monthly invoices.
  • Contractors' expenses in finding the contracts remain low. According to our surveys, 37% of all introductions lead to an assignment* (i.e. on average, contractors investment accumulate to approximately 5 hours per new client).
  • Relationships between clients and contractors are totally under their control, no need to report or cheat.
  • Accurate and realistic contractor profiles. As the contractor pays the introduction fee, they are motivated to ensure that the information provided in the profile is accurate and realistic. Profiles that are overstated or inaccurate would result in the contractor paying unnecessary introduction fees.

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

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