Oilfield Consulting Firm Transparency : Take Rate vs Billing Rate

We often find that contractors and consultants are NOT fully aware of the ‘take rate’ that they are being charged by their oilfield consulting firm, nor the benefits (if any) they are receiving in return.

While there are plenty of reputable oilfield consulting firms, there are also many questionable ones.  These non-transparent firms have created an environment where hard working people are consistently taken advantage of.  An informed contractor is the best contractor.  So, whether or not RigUp is the best option for you right now, make sure you are asking the right questions, and making an informed decision.

What is my Take Rate?

We define ‘take rate’ as the difference between how much an oilfield consulting firm invoices to their client (gross billable rate), and the amount the firm pays the contractor (net pay). Very simply, if a consultant’s gross billable rate is $1,000 per day, and the consultant takes home $900, then the ‘take rate’ is 10%.

RigUp offers the lowest take rates in the industry, on average 10% lower than competition.  You will take home an extra $30,000 per year

What is my Billing Rate?

Discovering your billable rate should be as easy as asking your oilfield consulting firm. However, RigUp has learned it’s not always as simple as that. And without your billable rate, it can be difficult to calculate what you’re actually being charged. RigUp has come across multiple cases of firms lying to consultants about their billable rate, making the consultant believe they had a lower take rate than they were actually receiving.  In one such case, we found a consultant that believed he was at 5% for almost a year before discovering a firm had actually been pocketing 17%.

The best way to actually confirm your billable rate is to see a signed invoice from the client.  It shouldn’t be a tough ask, but as you can imagine, sometimes firms don’t want to provide this.

At RigUp, we are happy to offer billable rate verification at any time.  What we bill and what you receive is 100% transparent.  As an independent business owner, this is your right.

About RigUp

RigUp empowers the men and women of oil and gas, leveraging software to provide the best experience in the industry. RigUp gives service providers exactly what they deserve.  The lowest rates, the guaranteed fastest pay, best in class insurance and benefit options, easy to use mobile and desktop app, and the friendliest 24/7 support team in the world. With a customer satisfaction score 55% above the industry average, having RigUp as an oilfield consulting firm option sells itself to contractors. To learn more about RigUp’s consulting program visit rigup.com/contractors.

Year-End Message from RigUp Co-Founder & COO Mike Witte

Dear RigUp Service Providers,

When we started RigUp, our goal was to provide independent contractors with the best work experience in oil and gas. We wanted to create a community where men and women—yourself included—could better perform the work they love, and receive the pay that they deserve.

I have always believed that the right person (or the wrong one) can drastically change how a project performs. As a petroleum engineer, I have worked with my share of independent contractors, drilling consultants, pumpers and gaugers, many of whom I found and hired through the boots on the ground relationships I had made, and the personal network that I had built. Unfortunately, the nature of oil and gas, the long payment cycles and the steep insurance requirements often forced me to send the individuals I wanted to work with to a ‘consulting firm,’ a group that often did little more than collect on 15% of their paycheck. This process felt wrong and unfair and I decided to do what I could to change it.

At RigUp, we work to win YOUR business every day. We believe in empowering the men and women who power the world. Our mission is to transform the energy industry with the strongest network of service providers, bar none.

As we enter into 2018, we will continue to work harder and smarter to create the best community of contractors in oil and gas. We have a lot of exciting things in store for you next year, so stay in touch and always keep in mind that your feedback and ideas are encouraged and greatly appreciated. You have helped make RigUp what it is today, so please let us know how we can continue to improve the community.

We’re changing the energy industry for good, and we’re grateful to have you as a part of the team.

Mike Witte
Co-Founder and COO
RigUp Co-Founder & COO
RigUp Co-Founder & COO