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What are Average Professional Placement Fees?

The average fees being charged worldwide are 25% of a candidates first year’s earnings. At higher levels, placement fees can be as much as 40%. To equate this to dollars and cents, if you placed someone who received an offer for $100,000, your fee for the placement would be $25,000.

In order to earn these fees, it is our job to identify candidates who our clients can’t find on their own. They expect us to find individuals who have skills, stability and experience, so they will hit the ground running. Your reputation will be on the back of every person you represent. There are some areas of specialization that have flat fees. These include some position in the following professions: sales, physicians, hospitality and retail. It is important to research your targeted niche, so you understand what fees you will be able to generate.
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Is It Possible to Place People Internationally?

When you open your staffing and recruiting firm, it is important to focus on a niche or segment of the business that will generate revenue. Often, international placements take more time, and are more costly than domestic placements. They can involve specific visas and relocations, which again are time consuming and expensive.

As a new business owner, unless you have experience recruiting international candidates, I would advise that you start out attracting domestic clients and candidates and then once you are established, consider placing internationally.

If this is your intention, consider this future plan when you are creating your business model, selecting the segment of the profession you will represent and most importantly when selecting your niche. You want your initial decisions to enhance not hinder your ability to realize your dream of working internationally.

Are There More Men or Women in This Profession?

For the first forty years of existence, the staffing and recruiting profession was predominantly controlled by men. This has changed drastically and currently there are just as many women as men in the profession worldwide.

One of the greatest things about the recruiting profession is that there is no specific “type” of person who excels. Some of the million dollar producers have a high school education and do not appear to be extremely assertive or ambitious. Others are very well educated, well-traveled and are very competitive. They specialize in a variety of niche markets and are all self-competitive.

If you’re asking this question to determine if you will be great at the staffing and recruiting profession, the answer is, “It all depends on you.” If you are self-motivated, self-competitive, focused and driven, you have a great chance at success.
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What Percentage of New Business Owners Succeed?

There is no accurate data available to answer this question, since so many businesses are now home based or virtual. The answer to this question also depends greatly on the industry. One of the highest rates of failure is the restaurant business. According to INC magazine 33% of all new businesses fail within the first six months, but again this depends greatly on the industry, experience of the owner and timing. You can improve your chances of success, by understanding why most new businesses fail which include the following eleven reasons:

ONE: No clear plan or revenue generating strategies

If you don’t know where you’re going, you will not get there.

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Benefits and Liabilities of a Business Partner

There are many possible benefits, but also many possible liabilities when you enter a business partnership. It is important that the partnership agreement protect both parties in case the partnership does not work out successfully.

Many partnership agreements assign 49% of stock to each partner with 2% of stock outstanding. If one person wants out of the partnership, the remaining partner then receives the outstanding 2% of stock, providing them with majority ownership. This is extremely important if the original partner sells their stock to someone who is not on the same page as the original two owners.

Some benefits of partnership include the following:

• Additional knowledge, skills and experience
• Shared liability

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