Contingency fee Recruiters (Head Hunters) work on commission. Launching your career as a Recruiter can take six weeks to three months. Depending on your chosen industry, (it's better to have two industries to recruit in, in my opinion). It's both possible and likely that you can make a placement in your first week or two. Keep in mind the candidate will then need to give two weeks notice, and it may take another two weeks to receive your fee from the client, after your candidate starts work. By the time you receive your first fee you should have a full pipeline and the peace of mind that comes from seeing your paychecks line up in a row from the additional placements you're making!



I strongly recommend you invest in a recruiter training program that will teach you sound principles and methods. Learning a system will place you in the top 20% of producers. The key to being a top producer includes understanding how to use third party referrals vs. job boards or the internet alone. A recruiter training program will help you succeed faster. A recruiter training program will polish your presentation and give you a professional advantage.

Knowing how to approach candidates who are happily employed and knowing exactly what to say will set you apart from the 85% of recruiters who rely solely on resumes. Your compensation will reflect the difference as well. When you know how to use third party referrals, you're no longer making cold calls; you're calling contacts complete with phone numbers and some background.

Why are third party referrals so significant? The unemployment rate in the United States is about 5% currently. About 15% of the population puts their resume into circulation on the job boards in the hope a better opportunity will come along. That leaves 80% of the population happily employed and not looking for a job. The best people and top talent are focused on their work. Employed candidates are receptive to calls from Head Hunters because it's both flattering and exciting to be identified as someone who is worthy of being recruited.

Too many employers and recruiters end up competing for a fraction of the candidate marketplace when they only seek candidates who have their resumes in circulation. There is a big difference between the best candidate and the ones who are simply available.

Typically, contingency fee recruiters charge 15% to 30% of a candidates' first year wages as their fee. In practice, the recruiting industry is evolving quickly and there are no hard core rules on fee amounts. I've worked on searches for partner level attorneys and have been asked to cap my fee at $60,000. I've also placed Loan Originators for $6,500. It's a matter of supply and demand and your comfort level with the "going rate fee." You always have the option of moving on to the next job order if an employer wants you to reduce your fee to an unrealistic amount.

If you've never worked from home or have limited business experience I have one more piece of advice. If you start your recruiting career working in a small office (or large), you'll gain confidence and expertise exponentially (assuming you've received some training first). There is a synergy that develops between Recruiters who work well together. Having someone to bounce phrases and ideas off can be very helpful in the beginning.

If you have a telephone, a computer (with internet access), knowledge of an industry, and some recruiter training, you can be very successful working at home as an Executive Recruiter. Why not start today? The recruiting industry is on track to grow 50% to 70% by 2014. There is room for you to be both successful and very happy!