Start your Home Based Recruiting Business Now!
Last Updated on Sunday, 04 September 2011 19:11 Written by Jim Strickland Tuesday, 02 August 2011 15:57
What's a recruiter?
A recruiter, AKA a "headhunter", is somebody that works directly with a client company (customer) or another recruiter to find qualified people for a specific companies job openings. Recruiting doesn't require any educational degrees, exams or special authentications but it requires a thorough understanding of your selected field.
Most recruiters work on a "contingency fee" arrangement which essentially means that the recruiter is contracted to find, pre-screen and qualify applicants for their clienteles review. Payment is only received after an applicant is successfully placed with the customer.
Clients typically opt for this arrangement because they pay no fee unless we find and they hirea suitable candidate. As a recruiter, you help corporations and job hunters connect and collect a fee when your job is completed.
A "retained" recruiter arrangement is another possible contract where the customer pays part of the recruiters ' costs up front to search for a skilled applicant. The balance is paid when the candidate is successfully hired. This form of arrangement is usually more traditional with Executive level positions.
How does a recruiter make money?
A recruiter produces his revenue by placing applicants with a client and getting paid based on the particular contractual agreement. This rate is mostly 20 to 30% of the candidates yearly income. As an example, if you were placing an applicant that had a salary of $70,000 per year then the fee paid to you would be $14,000 or even more ($70,000 x 20%).
An average recruiter could do from 1-3 placements each month. When you do the mathematics, you will find this business can be quite a nice "home based" income producer!
Another stream of income for a recruiter can come from other recruiters. This is done by being a participant of a split network where placements are done when one recruiter has the applicant and the other has the customer. The split fee is usually shared in a 50/50 arrangement.
How fast can I expect to make money as a recruiter?
This, naturally is completely up to when you start your business and if you're involved as a part time or full time recruiter. Clients generally reimburse recruiters from 30 to 45 days after the applicant start date.
An average full time recruiter which has been in the business for 12 months can usually make between $40,000 and $75,000 (their first complete year.) A professional recruiter with 2-4 years knowledge can make anywhere from $100,000 to $200,000 or more.
Am I Able To start this business part time without giving up my current job?
Yes. You'll find that there's a considerable measure of research and information gathering before beginning your new business that may simply be done in your free time.
After establishing your required specialty, you'll begin amassing names, phone numbers and e-mails of potential candidates. You may then start calling/emailing these individuals in you free time and discover what interest them and if they are ready to pursue a new position.
Or you might first start networking with other recruiters that have a current client agreement with job orders for that speciality and then proceed with contacting applicants. As I discussed before, there are a couple of "recruiter associations" that are comprised of recruiters that require aid with their job orders and welcome splits with other recruiters.
My preferred organization is Top Echelon. They've got a network of over 900 recruiters that have an interest in "splits" and they also provide site development, software, coaching and more.
Partner with Me
Do you presentlypresently have contact with hiring executives or HR in your chosen industry? If yes, start contacting them and learn if they're currently making use of the services of outside recruiters. If they are this could be a good opportunity for you to offer your services as a recruiter and jump start your home based recruiting business.
If this form of home run enterprise interest you, then my newbies electronic ebook will provide you with more recruiting basics and creative ideas to make your business successful.
Start your Home Based Recruiting business now.
About the Author:
This article was written by a practicing home based recruiter that has been in the business for over 11 years. His points of view on home-run recruiting can be discovered in his recently published e-book, Home Based Recruiting Tips