Direct Booking vs. Agency Placement: The Real Math
Agencies take 20-40% on top of your rate. But they also handle scheduling, invoicing, and sometimes insurance. Here's a data-driven comparison to help you decide the right mix.
Every relief vet eventually asks: should I work through agencies, book directly with clinics, or do a mix of both?
The answer isn't as simple as "direct pays more." Agencies provide real value — the question is whether that value justifies the cost. Let's run the actual numbers.
How Agency Economics Work
When a clinic hires you through an agency, the clinic pays the agency a total fee. The agency takes a cut and passes the rest to you.
The typical agency markup: 20-40% on top of your rate.
If you're earning $130/hour through an agency, the clinic is paying the agency approximately $165-$180/hour. That $35-$50/hour spread is the agency's revenue for finding, vetting, scheduling, and managing you.
The Major Platforms Compared
Roo
Model: 1099 independent contractor marketplace
Vet cost: Free for vets to join
How pay works: Clinics post shifts with a rate; vets accept them
Average vet earnings: ~$144/hour, ~$1,290 per 9-hour shift (2024 data)
Network: 20,000+ veterinary professionals
What they handle: Matching, scheduling, payment processing
What you handle: Your own insurance, taxes, benefits, credentials
Galaxy Vets
Model: Employee-owned (ESOP)
Unique feature: All workers — including relief vets — receive equity ownership in the company
How pay works: Competitive rates with the added value of ownership stake
What they handle: Scheduling, support, equity participation
Best for: Vets who want to build long-term wealth through ownership, not just shift income
Veterinary Locumotion
Model: Subscription-based platform ($10/month for vets)
Unique feature: No agency markup — clinics and vets connect directly
How pay works: You negotiate your rate directly with the clinic
What they handle: Platform matching, global coverage
What you handle: Everything else (negotiation, invoicing, insurance)
Best for: Experienced vets who want agency-style matching without the markup
The Annual Income Comparison
Let's compare three scenarios for a vet working 4 shifts per week, 48 weeks per year (192 shifts):
Scenario A: 100% Agency (1099 via Roo)
Item
Amount
Gross income (192 shifts × $1,290)
$247,680
Self-employment tax (15.3%)
-$37,895
Health insurance
-$8,500
PLIT insurance
-$500
Retirement contribution (SEP-IRA)
-$15,000
Other business expenses
-$5,000
Net take-home (pre-income tax)
$180,785
Scenario B: 100% Direct Booking
Item
Amount
Gross income (192 shifts × $1,050 avg direct rate)
$201,600
Self-employment tax (15.3%)
-$30,845
Health insurance
-$8,500
PLIT insurance
-$500
Retirement contribution (SEP-IRA)
-$15,000
Marketing/admin time (~5 hrs/week)
-$0 (but cost in time)
Other business expenses
-$5,000
Net take-home (pre-income tax)
$141,755
Wait — direct booking has the lowest net? Yes, because the average direct rate per shift is often lower than what agencies negotiate, especially for less experienced or less connected vets. However...
Scenario C: The Optimal Mix (60% Direct / 40% Agency)
Item
Amount
Direct income (115 shifts × $1,100)
$126,500
Agency income (77 shifts × $1,290)
$99,330
Total gross
$225,830
Self-employment tax (15.3%)
-$34,552
Health insurance
-$8,500
PLIT insurance
-$500
Retirement contribution
-$15,000
Other business expenses
-$5,000
Net take-home (pre-income tax)
$162,278
The mix works because:
Direct bookings at established clinic relationships can command higher or comparable rates (no agency cut)
Agency shifts fill schedule gaps and provide access to new clinics
You maintain schedule flexibility and income diversification
The Hidden Costs of Direct Booking
Agency comparison isn't just about the rate. Direct booking requires you to invest time in:
Finding and maintaining clinic relationships: Reaching out to clinics, marketing yourself, following up. Estimate 3-5 hours per week when building your network.
Administrative work: Creating and sending invoices, following up on late payments, managing your schedule across multiple direct contacts. Estimate 2-3 hours per week.
Collections risk: Agencies guarantee payment (or at least handle billing). With direct bookings, you're chasing invoices yourself. Industry standard is Net-14 to Net-30, but some clinics are slow payers.
No buffer for cancellations: Agencies often have cancellation policies that protect you. Direct bookings depend on whatever terms you've negotiated in your service agreement.
Insurance and credentialing: Agencies sometimes handle or simplify credentialing. With direct bookings, you manage everything.
When Agencies Are Worth the Cut
When you're starting out — agencies provide immediate access to shifts without needing an established reputation
For filling schedule gaps — agency platforms can fill a random Tuesday faster than cold-calling clinics
For geographic expansion — trying shifts in a new area? Agencies have existing clinic relationships
For administrative simplicity — if you'd rather focus on medicine and let someone else handle billing, scheduling, and credentialing
For benefits — if you're on a W-2 platform, the benefits package has real value ($15,000-$20,000/year equivalent)
When Direct Booking Wins
With established relationships — clinics where you've worked multiple times and built trust
For regular recurring shifts — "Every Tuesday at Valley Animal Hospital" type arrangements
When your reputation precedes you — word-of-mouth referrals from clinic to clinic
For maximum per-shift income — once you've cut out the middleman, more of each dollar is yours
For schedule control — direct relationships give you more negotiating power on dates, hours, and terms
Building Your Direct Booking Business
If you want to shift toward more direct bookings:
Start with clinics where you've done agency work. After a few successful shifts, approach the practice manager directly. "I've enjoyed working here. If you ever need relief coverage directly, I'd be happy to discuss terms."
Create a simple one-page service agreement. Include your rates, cancellation policy, payment terms, and insurance information. Professionalism builds confidence.
Join your local VMA and Relief VMA. Networking is how direct relationships start.
Ask for referrals. The best clinics hear about you from other clinics.
Be reliable. The single most valuable trait for building direct bookings. Show up on time, handle the caseload, leave the clinic better than you found it. Clinics will call you back.
The Bottom Line
There's no single right answer. The optimal strategy for most relief vets is a mix:
Use agencies for discovery, convenience, and schedule filling
Build direct relationships for your highest-value, most reliable shifts
Gradually increase your direct booking percentage as your network grows
Re-evaluate the mix every 6-12 months based on your income data
The goal isn't to eliminate agencies — it's to make sure you're making informed decisions about when the agency's cut is worth it and when it's not.