Winning a contingency job order is not “making a sale”

August 30, 2018

Winning a contingency job order is not “making a sale” …

No money has exchanged hands,

There’s zero commitment from the client,

There’s not even any real commitment from you as the recruiter,

You’ve basically just agreed to work for free on the understanding that you MIGHT get paid IF you fill the role…

And here’s the hard truth….

Let’s say your fill rate is 30%, that means 70% of the time you’re doing the work and not getting paid…

Most other industries would never accept terms that meant they’d only ever get paid by 30% of the clients who use their service or product…

I don’t think any employees would ever accept terms that meant they’d only get paid for 30% of the work they do (if you know any let me know) …

But it’s the norm for so many Recruitment and Search Business Owners….

And if you have a team of consultants, it means you’re paying them to do work that 70% of the time won’t lead to any additional business revenue…

STOP doing it…. You don’t have to!

As a business model, it’s fundamentally flawed…

“But, Terry… My fill rate is 90% and not 30%”

Well done, I’m happy for you… But whatever way you look at it, it’s ALWAYS better to get paid ‘sooner’ rather than ‘later’…

The faster the money is in your account; the more time you have to use it for growth…

So assuming growth and higher profits are what you’re aiming for… Retainers are the way to go…

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