What is Home Based Recruiting ?
What is a recruiter?
A recruiter, also known as a "headhunter", is a person that works directly with a company (client) or another recruiter to find qualified people for a particular companies job openings. Recruiting does not require any educational degrees, exams or special certifications but it does require a thorough knowledge of your chosen field.
Most recruiters work on a "contingency fee" arrangement which basically means that the recruiter is contracted to identify, prescreen and qualify candidates for their clients review. Payment is only received after a candidate is successfully placed with the client.
Clients usually prefer this arrangement because they pay no fee unless we find and they hire a qualified candidate. As a recruiter, you help companies and job seekers connect and collect a fee when your job is completed.
A “retained” recruiter arrangement is another possible contract where the client pays part of the recruiters’ fees up front to search for a particular candidate. The balance is paid when the candidate is successfully hired. This type arrangement is usually more common with Executive level positions.
How does a recruiter make money?
A recruiter produces his income by placing candidates with a client and getting paid based upon the particular contractual agreement. This rate is usually 20 to 30% of the candidate’s annual salary. For example, if you were placing a candidate that had a salary of $70,000 per year then the fee paid to you would be $14,000 or more ($70,000 x 20%).
An average recruiter could do from 1-3 placements per month. When you do the math, you'll find that this business can be quite a nice “home based” income producer!
Another primary source of income for a recruiter can come from other recruiters. This is done by being part of a split network whereas placements are done when one recruiter has the candidate and the other has the client. The collected fee is usually shared in a 50/50 arrangement.
How soon can I expect to make money as a recruiter?
This, of course, is entirely up to when you start your business and if you are involved as a part time or full time recruiter. Clients usually reimburse recruiters from 30 to 45 days after the candidate start date.
An average full time recruiter that has been in the business for 12 months can usually make between $40,000 and $75,000 (their first full year.) An experienced recruiter with 2-4 years experience can make anywhere from $100,000 to $200,000 or more.
Can I start this business part-time without quitting my current job?
Yes. You will find that there is a considerable amount of research and information gathering prior to starting your new business that can easily be done in your spare time.
After establishing your targeted specialty, you will begin accumulating names, phone numbers and emails of potential candidates. You can then start calling/emailing these individuals in you spare time and find out what interest them and if they are ready to pursue a new position.
Or you could first start networking with other recruiters that have a current client agreement with job orders for that specialty and then proceed with contacting candidates. As I mentioned before, there are several "recruiter associations" that are loaded with recruiters that need help with their job orders and welcome splits with other recruiters.
My preferred association is Top Echelon. They have a network of 1500+recruiters that are interested in “splits” and they also provide web site development, database availability, training and more.
Partner with Me
Do you currently have contact with hiring managers or human resource employees in your chosen industry? If yes, start contacting them and find out if they are currently utilizing the services of outside recruiters. If they are, this could be an excellent opportunity for you to offer your services as a recruiter and jump start your home based recruiting business.
Questions?
Feel free to email me at jim@homebasedrecruitingtips.com and I’ll do my best to answer your questions and point you in the right direction. I’m always looking for new partners to network with and make additional money in “split deals”.
If this type home based business interest you, then my beginner’s e-book will provide you with even more recruiting basics and creative ideas to make your business successful.
Start your Home Based Recruiting business
About the Author:This article was written by a practicing home based recruiter that has been in the recruiting industry for eight years.His perspectives on home based recruiting and basics for beginners can be found in his recently published ebook, Home Based Recruiting Tips
Article Source: ArticlesBase.com - What is Home Based Recruiting ?