I will start out explaining this concept, followed by explaining how experienced staffing professionals can join us under a scenario where we help you get into a home based business of your own that requires no investment, where you work as part of a team with us.
My name is David Fogg. I had been in staffing for many years ending up as a VP before deciding to start my own business as a Head Hunter/Recruiter back in 2003. At the same time a CEO of a staffing company tried to hire me as a regional VP and I declined. He said "If you will not work for me, how about helping me recruit some people for my various branch offices?" This is how I was led into in the staffing industry as a specialty to build my recruiting business. I began working on various job orders for this company around the USA recruiting managers, sales reps and recruiters. As I did this other staffing companies began to hear of me, and sought me out to work with them as well.
Being I work from home, I designed the customer and candidate database to be built into the back side of my Web site. It is located in a password protected online database which me, and you can access not only from home, but from anywhere in the world that has internet access. I can be sitting in a lounge chair on the beach in the Bahamas with a cell phone and wireless access, running my business the same as if I were at my desk from home. This means I can work with others and set them up to work from home tag teaming with me.
My business started out as a normal fee per hire recruiting firm. However, I was faced with two problems. First, some of my clients were larger staffing companies with offices across the USA. They were giving me job orders to recruit people in various cities across the USA. Rather than slow down to become very well connected in a region, I was chasing job orders wherever they came from. A lesson I learned was to be strong and walk away from clients and job orders outside a region, and spend my time building my business in a region rather than chase business wherever I could find it. Another problem was contingency fee where I was paid if a staffing company hired someone from me. Unless a staffing company is willing to throw money at people to hire them, sometimes timing plays a role in whether or not it is possible to recruit an experienced staffing professional in the same city at the same time the client wants. Sometimes it can take a long time, relationship building and luring people in staffing to eventually make the decision to switch companies. There were many times staffing companies gave me job orders to recruit hard to find people that took a long time to recruit, only to end up never being paid anything because the staffing companies changed their mind or could not afford to hire the people they sent me out to find. In all reality, contingency terms are meant for temporary staffing, not for perm recruiting. A problem in the staffing industry is so many temp staffing companies sell perm the same way they sell temp, that most everyone these days thinks the terms of doing business should be the same, when the truth is contingency terms make it impossible for a recruiter to work on very hard to fill job orders because the risk of wasting time and losing money outweighs the potential to earn the fee.
I thought it was rediculous that I could spend 6 weeks searching for that hard to find person all for nothing. I wanted to find a better way.
As a result, my business model changed. I moved away from fee per hire contingency terms and formed a group of staffing companies each paying me a small annual retainer that was broken down into monthly payments. It is very much like each of these companies hiring me part time so the cost to each is part time and inexpensive, while I created a stable job for myself. The theory is each company in the group is paying me to build complete lists of their competitors from which to create a forward thinking talent acquisition resource. In other words, I am building lists that become a breeding ground for people to recruit for my clients, thus helping them grow and keep up with normal turnover.
An interesting fact is throughout the year experienced staffing professionals will come to me whom my core customers will not hire, I can then market these candidates to other staffing companies for normal placement fees, increasing my income beyond what I earn from the group. I can even rebate some of these fees back to my core customer because it was they who paid me the retainer to build the lists where these candidates come from. By rebating 10% of the fees I generate, I am paying back some of the part time retainer these clients pay to me which completely eliminates cost from being a reason NOT to work with me. And, as I build complete lists of staffing companies in various States & Cities, I can call on other employers outside of staffing such as payroll companies, employee leasing companies, HR companies and many types of IT companies, all who like to hire sales people with staffing experience. I can recruit people out of the staffing industry from my lists and place them into these other companies outside of staffing for normal placement fees. Usually the people I recruit from staffing into these other types of companies have reached a point they wanted out of the staffing industry anyway.
I have created a stable JOB for myself by forming the group of staffing companies, while I can also expand my income by making normal placements with fees outside the group as I just explained. Another thing I love about this model is it brings me much closer to the few staffing companies I work with as if I were their internal employee. I feel very loyal towards them and I feel like I have a purpose. This is much better than normal fee per hire recruiting where the career is like a rollercoaster ride of ups and downs.
My business evolved more into an even better direction. Another problem I faced is that as a recruiter all I can do is recruit people for my clients, they have to close the deal and convince the person to accept their job offers. Sometimes staffing company owners and executives do not understand how much time is required to successfully break people loose and recruit them from their competition. And, all Owners and VPs would prefer it if their internal recruiters and managers could do a better job at recruiting their own people. So I adapted my concept to allowing staffing companies I work with to access my database online. They can direct me to conduct very important searches for their mission critical and sensitive jobs, while paying me to build lists of their competitors and to maintain the accuracy of those lists because people do move around in staffing, and come in and out of this industry. The internal recruiters and managers can access my database online the same as if it were an accurate and much more complete version of Linkedin. So now instead of expecting me to fill all of their internal jobs, they are paying me to conduct fewer but more important searches which is really how I should be utilized, while their managers can access my database online just like it was a complete version of Linkedin and recruit people from the lists directly. This moves me away from being paid 100% for recruiting, towards 50% for recruiting and 50% for building and maintaining the lists.
Finally, what I am about to tell you is very important. Recruiters will often sell first to find clients and job orders, then scramble to find candidates to recruit. That is backwards. If you worked with me, I would give you a territory that contains lists in various levels of completeness. I would train you how to complete the lists of staffing companies and begin populating them with the people in each office. What you are doing is creating a product that you can SHOW people online, rather than tell a story about being able to recruit.
As you work the list building process I will provide you with marketing materials you can send to Owners and Executives, and to the people in each office. The message is simple: You are building the most complete list of staffing companies in existence. You will be the person who has the most contacts, which means any time an experienced staffing professional wants to find a new job you will have the contacts to get their resume in front of the right people helping create those new opportunities. So everyone in staffing would want to know you, and that makes you a very important person in the staffing industry within the territory you work. The other side of the message is to Owners and Executives, giving them a heads up that you are building this very important list of staffing contacts, and soon you will make yourself and the list available, but only to a few staffing companies under the shared cost/group concept. This sets them up to WANT to be one of the few you work with so you are on their team working with them, rather than working against them! You are basically acting like a store that is gearing up for a Grand Opening. When the lists are ready, that is when you go back to all the Owners and Executives that you had sent information to prior, and turn on the switch letting them know the lists are now complete and there is a short window of opportunity for them to join the group before all the slots are filled.
My sales process is designed to make staffing companies want to work with me, rather than me beg them to give me job orders. The common sense is if they work with me, I will help them make a lot of money, I will become their personal part time talent scout, and I will be working with them, against their competition. If they are not part of the group, I will be recruiting their people away from them, it is that simple. Let's just say it is far better to have me working for a staffing company than against them!
Because we are selling retainers and not fee per hire, we can generate a small group of clients quickly that start paying us each month. This model helps create a stream of money coming in each month within 90 days, rather than wait 6 months for big hit fees to become realistic.
This process converts me from being a normal external recruiter to becoming more like an internal employee of the few staffing companies I work with. No longer am I sent out to conduct intense searches where I am burned and not paid anything. No longer am I given the same job order 4 other recruiters already have. All of these risks are eliminated so I am free to give myself 100% just to the few staffing companies in this group. And in return, I can bring the most complete list of staffing companies and the people working for them in existence only to the few staffing companies I work with.
There is enough room in the staffing industry for 4 people to COPY me and do the same thing without our bumping into each other. I have invested over $100k into the technical development of this online database that contains a complete training library to teach others everything I have learned to get this business to where it is today. The database is already complete and there are lists to inherit. Rather than lease an office and hire W2 employees, I have decided only to work with experienced staffing professionals who like me, wanted to exit the staffing industry and try something new and different. If you have staffing industry experience, I can teach you how to take that experience and apply it towards building your own home based business under my company umbrella where no investment is required. I have already made the investment. All you have to do is learn and work.
The plan is based on developing a group of staffing companies producing $100k per year gross revenue. The pay out is 60% which would net you $60,000 annually. An example is 7 staffing companies at $15k each to form the group = $105k per year. $60k is not making you wealthy, but it does form a stable monthly income. As you build lists of staffing companies, those lists become very valuable. You can then begin making placements for normal fees outside the group of retained clients to produce at leats another $100k per year in revenue. That boosts your annual income to $120k. Obviously you can produce more, but I wanted to base this model and projection on low and very realistic numbers.
If you are like me, an experienced staffing industry professional who reached a point where you want to try something different - I can help you convert all of your staffing experience into building a home based business copying me. You would be in your own business, but not be alone, you would be part of a small team where I have already made the mistakes and paved the way for you to follow. I have the technology in place, the lists for you to inherit, a complete training library, everything is in place and ready to go. All you have to do is plug in and follow the system.
If you are interested in learning more, call or send me an email.
Also, look at the Our Services page on this Web site to learn about all the things I do for the staffing companies I represent, as you would be trained to do the same thing.
David Fogg
david@staffandtrain.com
David Fogg
David@staffandtrain.com
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