Good morning everyone, I would appreciate your input since I am a total newbie. I was presented with the possibility of working with a recruiter, or more so for a recruiter. The deal would be that I am trying to find the candidates, turn these then over to the recruiter and receive 30% of what the recruiter receives from the client should the candidate be hired..is the 30% a fair percentage? Why? Why not? Would appreciate your help and input!! Thanks a lot in  advance. Ulrike

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That's a great deal! Typically in a split type arrangement, the fee is split 50/50 between recruiter working client side and recruiter handling candidate side, and for the recruiter handling the candidate side, they source, recruit, manage, check references, and close that candidate, for their 50% share. It sounds like you are getting 30% for finding the candidate and then handing over to the recruiter who then does everything else, all you have to do is find the person. So, 30% sounds high.....unless you are also doing everything else listed?
Thank you Pam. I appreciate it big time. I am actually not sure if I would do all you've listed (in my little world I thought I would besides the closing portion). Your answer of course led me to more questions to ask the recruiter, which is great. Thanks again.

pam claughton said:
That's a great deal! Typically in a split type arrangement, the fee is split 50/50 between recruiter working client side and recruiter handling candidate side, and for the recruiter handling the candidate side, they source, recruit, manage, check references, and close that candidate, for their 50% share. It sounds like you are getting 30% for finding the candidate and then handing over to the recruiter who then does everything else, all you have to do is find the person. So, 30% sounds high.....unless you are also doing everything else listed?
I agree with Pam.  The down side is that you may have little client interaction.  That can be bad because you cannot grow a business with just one client and in this model your one client is the recruiting firm.  Many firms specialize in candidate "research" which is work as you've described performed on an hourly basis regardless of whether candidates presented are hired or not.
Thank you Tom. I actually would have no client interaction at all. In addition it would not be based on an hourly fee but depending on if the presented candidate is hired or not.

Tom Dimmick said:
I agree with Pam.  The down side is that you may have little client interaction.  That can be bad because you cannot grow a business with just one client and in this model your one client is the recruiting firm.  Many firms specialize in candidate "research" which is work as you've described performed on an hourly basis regardless of whether candidates presented are hired or not.

Ulrike,

What you are basically talking about here is working on straight commission sourcing.  If you have other means of support and can source candidates that the recruiter can place you can make some good money at 30% of the fee the recruiter gets.

 

If you are depending on this to support yourself understand that sometimes even a good candidate that is a fit can take 60 days to be interviewed and start to work if things go well.  Then another 30 days for the recruiter to receive payment.  I am assuming that the deal is you will not be paid until the recruiter gets paid (standard for these type of arrangements) so understand that if you find a good candidate and the recruiter moves forward and places the candidate you are probably looking at 90 days before you receive anything.  If you are able to keep top candidates in the pipeline then it should start to flow but you could go an even longer period of time with no income if the candidate is not hired or the start date is put off.

 

Another question you should clarify is if a candidate you source is placed, what is the guarantee period that the recruiter is offering the client.  Do you get paid when the recruiter gets paid or do you have to wait until the guarantee period is completed before you get paid.  If you get paid at the time the recruiter gets paid but the candidate falls out before the guarantee period is fulfilled would you be expected to refund what you have been paid to the recruiter if he has to refund to his client.  If the recruiter has to replace would you have the opportunity to source the replacement and if you were unable to source the replacement would you be expecet to refund what you had been paid or would the recruiter charge that amount back to you on future candidates that you source and he is able to place.  That may sound confusing but it can be a big deal if there is a fall out so just clarify what the expectation would be in the event of a fall out before guarantee period or if you dont' get paid until the guarantee period is complete.

Sandra, thank you for your detailed answer. From what I understand I would get paid once the recruiter gets paid, which is once the guarantee period is completed. However, I certainly will clarify. Thank you so much.



Sandra McCartt said:

Ulrike,

What you are basically talking about here is working on straight commission sourcing.  If you have other means of support and can source candidates that the recruiter can place you can make some good money at 30% of the fee the recruiter gets.

 

If you are depending on this to support yourself understand that sometimes even a good candidate that is a fit can take 60 days to be interviewed and start to work if things go well.  Then another 30 days for the recruiter to receive payment.  I am assuming that the deal is you will not be paid until the recruiter gets paid (standard for these type of arrangements) so understand that if you find a good candidate and the recruiter moves forward and places the candidate you are probably looking at 90 days before you receive anything.  If you are able to keep top candidates in the pipeline then it should start to flow but you could go an even longer period of time with no income if the candidate is not hired or the start date is put off.

 

Another question you should clarify is if a candidate you source is placed, what is the guarantee period that the recruiter is offering the client.  Do you get paid when the recruiter gets paid or do you have to wait until the guarantee period is completed before you get paid.  If you get paid at the time the recruiter gets paid but the candidate falls out before the guarantee period is fulfilled would you be expected to refund what you have been paid to the recruiter if he has to refund to his client.  If the recruiter has to replace would you have the opportunity to source the replacement and if you were unable to source the replacement would you be expecet to refund what you had been paid or would the recruiter charge that amount back to you on future candidates that you source and he is able to place.  That may sound confusing but it can be a big deal if there is a fall out so just clarify what the expectation would be in the event of a fall out before guarantee period or if you dont' get paid until the guarantee period is complete.

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