Understanding the Differences Between Working Independently and Through an Agency

Q: What are the primary differences between working as an independent contractor and working through an agency?

A: As an independent contractor, you would manage all aspects of your work, including client acquisition, setting your rates, invoicing, and handling any administrative or legal responsibilities. When working through an agency, these tasks are managed by the agency, which provides consistent work, administrative support, and legal coverage, allowing you to focus solely on transcription. For an in-depth guide on establishing yourself as an independent contractor, see our article about Independent Contracting.

Q: Why do agencies take a significant percentage of the rate charged to clients?

A: Agencies provide a range of services that support transcribers, including client communication, invoicing, conflict resolution, technical support, and insurance coverage. These services involve considerable costs, which are covered by the percentage of the rate that agencies retain. This allows transcribers to focus on their work without the burden of managing these additional responsibilities.

For more information on the rates that agencies charge clients, see our blog post, Why do Prices Vary for Real-Time Transcription Services?

Q: What are the benefits of working through an agency?

A: Some key benefits include:

• Consistent Workflow: Agencies often have multiple clients, providing a steadier stream of work.
• Administrative Support: Agencies handle tasks like invoicing, client communication, and conflict resolution.
• Diverse Opportunities: Working through an agency can expose you to a variety of assignments.
• Schedule Flexibility: As an independent contractor, you maintain control over your schedule.
• Insurance and Legal Coverage: Agencies typically cover necessary insurance, reducing your costs and responsibilities.

Q: Why might transcriber pay not be increasing at the same rate as the cost of living?

A: Many schools and institutions operate under tight budget constraints, which affects the rates they can pay for transcription services. This, in turn, impacts the rates that agencies can offer to transcribers. While agencies strive to offer competitive rates, they are often limited by the funding available from their clients.

Q: Should I consider working independently instead of through an agency?

A: This depends on your individual goals and circumstances. Independent work offers more control over your rates and contracts but comes with additional responsibilities such as client management, invoicing, and legal compliance. Working through an agency provides support in these areas but may offer a lower hourly rate. It’s important to weigh the pros and cons before making a decision. For a deeper dive into the pros and cons of independent work versus agency work, check out our blog post about Navigating Transcription Rates.