Just wondering what everyone's experience with fees have been. With the economy in the tank....are managers pushing back at fees. In my old MRI days I got 30 percent some jobs. Today I am expecting to be in the 20 percent range, possibly even going down to 15 percent..
Would you agree with these percentages for a small, start up? Suggestions?
I have found a very good rule of thumb over the years. The lower the fee is the less the client values what you do. The less they value what you do the less they cooperate with you. The less cooperation you have the less likely it is you will see any fee at all. The less they value your service the more they try to make sure they DON'T have to pay you anything at all. So in all reality - the lower fees are easier to find but harder to actually make happen.....which seems odd..........so if someone wants to shoot me for that statement feel free!
Now this might not be the case in all situations. Like I've got a few clients who will not pay more than 20%. I'll agree to that as a "goal" with the first fee (always - no exceptions) at 25%. Most agree.
I will no longer accept an assignment at 20% to start and will never EVER work a position at under that.
I would recommed not allowing your self talk to be "I'm just starting out" rather - "I am going to provide an excellent service!" and then do just that!
I agree with the others. I wouldn't position yourself with new clients as an 'independent recruiter' or 'virtual recruiter'. Just talk about your company. Perception is everything, and results matter most.
I will respond to the one area where the others didnt mentino as far as where the economy is an and effects. I 100% agree to not work for less then 20% and I agree the companies will not value you if you place price war and keep getting lower.
However I have seen some Big firms playing the price wars lately - 18 and 15%. What is up with that. Just curious everyone;s thoughts
Hi Bob.. I have to agree with everything Jerry said. We are a retained search firm and ask for 30%. We explain what a kind of service our client can expect to get. We specialize in providing individualized, professional, results driven assistance. I like to think we make difficult placements in a very timely manner. It seems to me every time we have ever changed our policy to get an account by excepting less money, it has proven to be exactly what Jerry described , we get less cooperation, they don't value the service provided, and collection of the final payment is difficult.