Effective March 1, 2023, the following platform fees will apply to transactions sourced through SquadGurus. This will only apply to transactions that are contracted after March 1, 2023 unless otherwise noted below.
Staff Augmentation & Managed Teams
The following commission rates apply to the monthly client billings for all client / service provider relationships for Staffing/Staff Augmentation and Managed Teams relationships. As a Service Provider you may have more than one Client through SquadGurus. We will calculate your commissions independently for each Client relationship (they are not consolidated).
Tier – Range of Monthly Gross Services Billing / Rate
Tier 1 – 0 to 50,000 (USD or EUR): 12.5%
Tier 2 – 50,001 to 75,000 (USD or EUR): 10%
Tier 3 – 75,001 to 150,000 (USD or EUR): 7.5%
Tier 4 – greater than 150,000 (USD or EUR): 5%
Scenario A – gross services of $18,000 per month
This would be Tier 1 and the 12.5% commission would apply to all $18,000 of gross services. Your commission for that month would be $2,250 (which is $18,000 x 0.125).
Scenario B – gross services of €65,000 per month
The platform fee for this scenario would be calculated as follows:
Tier 1 €50,000 x 12.5% = €6,250.00
Tier 2 €15,000 x 10% = €1,500.00 (from 50,000 to 65,000 is 15,000)
Total = €7,750.00 (sum of Tier 1 & 2)
Please note that each month we know that gross revenue may change due to the number of billing days in the month and the number of resources you have deployed with a client. Each month we will use this model to calculate the commission and will provide you with the calculations.
We look at cumulative billings for project work over the course of the project (in contrast with staffing and teams which is monthly billing). For larger projects and for projects that extend and grow, the result would be decreased commissions.
Cumulative Projects Gross Billing
Tier 1 – 0 to 100,000 (USD or EUR): 12.5%
Tier 2 – 100,001 to 500,000 (USD or EUR): 10%
Tier 3 – 500,001 to 1,000,000 (USD or EUR): 8%
Tier 4 – 1,000,001 to 2,500,000 (USD or EUR): 6%
Tier 5 – greater than 2,500,000 (USD or EUR): 5%
Impact on Existing Contracts
As noted above, all pre-existing relationships are based on a 10% flat rate. There are two types of contracting models we have in place. Prior to December 2021, our model was prime contractor/subcontractor where we have a contract with a client and subcontract the work to one or more service providers. After December 2021 we moved to our new “hybrid” contracts model where the client signs an MSA and providers are actually contracted directly with clients.
For old prime contractor/subcontractor contracts, nothing will change and this applies for both existing teams and any changes in team composition/revenue, etc.
For those relationships under the new hybrid contract model, where the MSA and SOWs are legally between you and the clients, or for older relationships where you are billing the client directly under your own contracts, we will apply the tiered commission structure above to all gross services with the exception of Tier 1 which will remain at 10% (e.g. Tier 1 & 2 are both at 10%). If you exceed 50,000 (USD or EUR) in a month, your commission rate will decrease.
- These commission rates apply whether or not the SquadGurus contract is used. If a Client and Service Provider use their own contracts, handle invoicing directly, etc. these rates would still apply to the commissions paid by Providers.
- SquadGurus reserves the right to change the commission rates quoted above for any specific deal where circumstances warrant it. We will notify Service Providers in advance if any SOWs being executed will have different commission structures than published on our site.
- We reserve the right to change these commission rates at any time upon 30 days written notice.