Splits – To Do or Not To Do?

I felt compelled to respond to this back in August of last year just as things started to nose dive (after leveling off and slowing measureably during the summer) and I bring it back up now because even more sourcers are coming to me telling me they're being propositioned w/ "split" deals to do the upfront research on searches.

I told them in the past I would not do it based on my own experiences.

I also must confess most of my adult working life has been spent working in a commission-only space.

Let me tell my story.

Around about the year 2000, just over three years into my telephone names sourcing career I was approached by a gentleman who owned one of the (then) popular recruiting franchises. I’d been happily doing my work on a per name basis (I think it was $23/name back then) and he wanted me to work on a split basis with him. You know, I supply the names, he supplies the open positions.

I listened to his yadda-yadda and being the good salesperson I am myself, I was SOLD. I long ago learned that the easiest people to sell are other salespeople. I forgot that maxim at the time though. He was so convincing.

So I did the work (I forget what it was but I do recall it was taxing) and sent him a list of fifty+ names within maybe five days. As I usually do.

One week passes. Two. Three. I hear nothing. I call.

He’s on vacation. I wait two more weeks for him to return. I call and I get his voicemail and leave a message that never gets returned. A week later I call again.

“May I have him call you back?” the receptionist answers when I tell her I left a message last week that never was returned so no, I did not care to leave another in his VoiceMail since he was on the phone. I preferred to wait. And wait I did – fifteen minutes or so and then he comes on the phone.

“How ya’ doin’ Maureen?!” he exclaims in an over-friendly and (I can hear it!) guilty tone.

“Fine,” I answer, all no-nonsense and rather ticked. “How are those names working I sent you on the search?”

“Oh! That guy was crazy! I took him three possible candidates out of your names and he kept changing the parameters – I fired him as a client!” he crowed. I could tell he was waiting for my response.

“You could have told me this,” I stated, rather accusatorially, I admit.

“I left on vacation and you know how it is, time just gets away…”

To make a long story short, I didn’t receive ONE THIN DIME for my efforts and not even an apology for the shoddy manner in which I had been treated.

Now, sourcers, I’m not saying you should not do business with those who approach you with split deals. I am telling you to know who they are, understand their character and their work habits, and have a written agreement that calls for some compensation when some ridiculous event like I just described occurs. You have NO control over the other person’s work habits or results, only your own. Remember that and also remember this – without YOU many searches can’t (and don't!) get off the ground.

NOW, if any of you out there who want sourcers to work on "split" agreements with you, tell us who you are, why we should work with you, how we should work with you and what we're to expect. Be prepared to provide references.

THAT's what I'm talkin' about!

▶ Reply to This

Replies to This Discussion

Permalink Reply by Maureen Sharib on June 23, 2010 at 11:35am

40-50% (to the sourcer if the names are telephone-sourced) and the sourcer's function stops upon name delivery
15-25% (to the sourcer if the names are Internet sourced) and the sourcer's function stops upon name delivery

▶ Reply

Permalink Reply by Maureen Sharib on June 23, 2010 at 11:57am

I would agree w/ that. 50% for someone who's been sourced, profiled, sent along and ultimately, GETS HIRED!

▶ Reply

Permalink Reply by pam claughton on June 23, 2010 at 12:06pm

Is it common for Sourcers to work on 100% commission? It seems a bit risky for the sourcer because they have no control over what the recruiter does with those names, as Maureen's example showed. 50% also seems high, I would only pay that out if the sourcer was also a recruiter and was handling the full lifecycle, managing process, and closing. But I wouldn't enter into a 100% commission arrangement with a researcher, I'd be more apt to pay them hourly with bonus if someone they source is placed.

▶ Reply

Permalink Reply by Greg on June 24, 2010 at 10:49am

I've given serious thought to working on splits for a long time. What makes the most sense is to partner with an individual or a small company that only does sales and has a solid reputation. For example, although i haven't done any deals with him yet, Todd Kmiec only does the sales end of the business and works with independent recruiters to supply his candidates. He is ultra professional, sincere and very helpful with regards to his job opportunities as he understands that only in a partnership will this situation work.

▶ Reply

Permalink Reply by pam claughton on June 24, 2010 at 8:27pm

Gregg,

I do a lot of split work and the approach that works for me is to work with a small group of recruiters who work on similar searches. Some people I knew previously, and some I've met through other recruiters. The advantage of working this way is leverage. If I several of us are working Java searches for instance, as we recruit on our own searches, we may find candidates who could also work for our split partners searches and this way we up our odds of placing them. And another advantage is that it goes both ways....my split partners will send me candidates for my searches and I will also send people their way...so you have more options than if you just focused on split partners who focus on sales, and you have to do all the recruiting.

~Pam

Gregg said:

I've given serious thought to working on splits for a long time. What makes the most sense is to partner with an individual or a small company that only does sales and has a solid reputation. For example, although i haven't done any deals with him yet, Todd Kmiec only does the sales end of the business and works with independent recruiters to supply his candidates. He is ultra professional, sincere and very helpful with regards to his job opportunities as he understands that only in a partnership will this situation work.