Can owning a recruitment agency make a good living?

Question

I am looking at starting up, after first spending some time working for an established agency to get some insight and build a client list.

Can running a recruitment business be lucrative? Also, how exactly do recruitment agency's make money?

Regards

James John-Smokelight

Answer 1

It indeed is a very profitable venture.

You provide manpower to the companies and they pay you commission for it which is usually equivalent to 8.33% of the annual package or equivalent to a month's salary of the candidate that you get placed with the company. [For e.g. if u get candidate 'x' a job in company 'y' where the monthly salary he gets is say 3000, then you get 3000 as your commission. Imagine your monthly income if you get 20 such candidates placed in one month :-) ]  

You need to have good contacts across the industry so that you can get empanelled with the companies as a supplier of Manpower. Even if you don't have contacts no need to worry, it just means a little of extra work for you. You need to advertise yourself by sending letters, brochures, etc to prospective clients. Basically if you don't have contacts in the industry, the only way out is to Advertise yourself the Best you can.

Also you need to negotiate salaries on the client side and manage expectations on the candidate side.

You can source candidates through personal contacts AND through advertising vacancies in local newspapers, websites, etc AND through Job Portals.

For any further help Free feel to contact me at :

[e-mail]

OR is it

[e-mail] (Sorry, Am not sure. U can try both.)

Answer 2

Yes you can make quite alot if you are owning one. They make money by charging the client a percentage for the candidate and then giving the consultant 5-20% and the reminder will go into the company, there salary and there manager etc, I have been in the industry for 15 years and it can be stressful but can be rewarding, you need to have money incase everything goes haywire. Good Luck

Answer 3

very profitable business