Recruiting Franchise vs. Recruiting Network – Which one is right for you?

by Veronica Blatt

When hiring is robust, like the cycle we are entering (or are already in, depending on the market), there is high interest in starting a recruiting business. It can be a lucrative and rewarding career; it’s attractive to many former HR and corporate recruiters, and high-producing third-party recruiters who have no equity in their current employment situation may consider going out on their own.

Two of the more common models for starting a recruiting business are purchasing a recruiting franchise, or going it alone with the help of a recruiting network (it’s the old “buy or make” dilemma). If you’re interested in starting a recruiting business, here is a list of key differences between a recruiting franchise and a recruiting network that might be helpful in your decision-making:

Recruiting Franchise Recruiting Network
High start-up costs – purchasing a franchise can cost more than US$50,000 Low start-up costs – you can start your business from your home with a phone and computer
Franchise fees   – a portion (5% or more) of gross REVENUES paid each month Recruiting networks can charge monthly dues, brokerage or commission on placements, both dues and brokerage, or be free
Varying levels of autonomy as a business owner Total autonomy as a business owner
Purchasing a business process and corporate marketing/branding Purchasing access to connections, referrals, and/or trading partners
Software – usually have to purchase and use corporate-mandated system Software – free to choose your own based on what works best for your needs
Prescribed business practices – A franchise must be run according to the corporate model Guidelines and best practices – A recruiting network will offer guidelines and best practices as opposed to a specific business model, with a community of peers to learn from
Lots of training Varying levels of training

Purchasing a recruiting franchise can be a great option for those with a lot of up-front cash who want to follow a corporate model with lots of training. For those with a more entrepreneurial style, an independent business combined with membership in an established recruiting network can offer more freedom and flexibility. Both choices can be successful; the key is to find the one that best fits your needs.


Business Growth for Recruiters

by Dave Nerz

The economy is recovering, or at a minimum it is much improved from 2009 and 2010 levels, but are you seeing an increase in recruiter profits? Are you feeling that you have a plan in place for business growth for recruiters and your business?

If you want to be a very successful business owner or recruiter, so much of your success depends on focus.

Warren Buffet is quoted as saying, “The difference between successful people and very successful people is that very successful people say ‘no’ to almost everything.” That is why I am a proponent of a “Stop Doing This List.” In order to focus, we all must decide what we will stop doing to make time for the really important stuff. As with all things in life, moderation in the execution of an idea like this makes the idea more realistic. Don’t give up eating, sleeping, and breathing, but look for other things that add no long-term value to your focus and defined goals.

Here are some ideas I have been working on. It is a work in process for me so check back and I’ll let you know how it’s going.

  • STOP…Spending time on junk email. I have spent time setting up some really good filters on my Outlook so if it hits the “Junk Folder” it doesn’t even get a second look.
  • STOP…Doing things at or past the deadline. It takes less time to do these things on time or ahead of schedule. Less follow-up emails and reminders to worry about.
  • STOP…Sending very long emails. Pick up the phone it might even save you time.
  • STOP…Being disorganized. It takes time and creates stress.
  • STOP…Taking phone calls, emails, or meetings that do not align with your goals. If you made a commitment or if you see potential for profit, saving, learning, or growth, then go for it. Don’t turn off new ideas, but choose to be selective.
  • STOP…setting all meeting times for 30 minutes or 1 hour. If you set the expectation of an hour, it will last an hour. Try setting a 15 minute meeting instead of a 30 minute session. Or, be really strange and try a 12 minute meeting.

You get the idea. It is not easy and the old habits will die hard. But your sacrifice just might create some space to do something that increases recruiter profits and creates growth for your business.