A contracting agency works by connecting clients with independent contractors (Doula and Newborn Care Specialist businesses). The agency typically serves as the point of contact between the client and the provider, handling all communications, payments, and other services as needed. In this industry, the agency is usually providing a service to both sides. They may also offer guidance on things like taxes, insurance, and other legal matters that come with working as a contract worker. Additionally, they may help facilitate negotiations between both parties to ensure that everyone is in agreement on the terms of the contract work.
The level of service provided to each side varies quite a bit from agency to agency with some agencies being very hands-off after the connection is made, while others will help with arranging meet & greets, shift scheduling, backup coverage, and resources. If something goes wrong during the contract, the agency acts as the mediator between the client and the contractor. The agency takes the loss on any refunds or non-payment, and the agency also receives negative reviews, if any.
There are several industries that use independent contractors, including IT and software development, marketing, advertising, consulting, virtual assistant services, event planning, freelancing, graphic design, web design, photography, and videography, accounting and finance services, delivery services, customer service, call centers, and the U.S. government.
Why don’t contract agencies employ their providers?
The simple answer to this is that they choose not to run that type of business. The real answer can be quite nuanced, but it has to do with legal requirements for employees in this country and/or the state(s) that the agency is working in. Read more about the numbers here:
What can an IC expect from the agency regarding client engagement and tasks (outside of payment collection) at a contract agency?
A contract agency handles all of the initial engagement with potential clients.
- Reviews the leads as they come in
- Reaches out to the potential client about once per week until an intake call is set up. (this could literally be months of contact depending on the family) This does not always move forward to a consult call, but the agency continues to work until told otherwise.
- Spends 30 minutes to 1-hour gathering information and discussing services and prices.
- Continues to follow up with the client for days, weeks, and sometimes even months until the client makes a decision. This does not always move forward to a signed contract, but the agency continues to work until told otherwise.
- Handles the contract signing.
- Posts the job. This often leads to reaching out directly to providers who may not be responsive or posting jobs in other locations and going through the hiring process to find coverage.
- Sends bios to the clients with available providers.
- Facilitates Meet & Greets with available providers and clients. Depending on individual availability this process can take days or several weeks and does not always end with the client moving forward and requires consistently checking in with clients, but also providers to make sure they are still available.
- Sends client invoices for the retainer, which sometimes takes days to be paid.
From here the process varies from agency to agency, but for an agency providing full-service support to both clients and providers the following engagement continues.
- Setting the client up in the system
- Sending follow-up emails
- Arranging the schedule for postpartum shifts
- Acting as a go-between for clients and doulas to ensure coverage, backup, etc.
- Ongoing support throughout the contract.
- Invoicing clients weekly and paying providers weekly
- Sending support documents
- Answering calls and texts with questions from clients and providers
- Requesting reviews and evaluations
- Handling any issues that arise during a contract
- Sending a birthday card to baby at 1 year
