I’m happy to report today that I started a staffing company in August of 2015 and I generated $2.1 Million in sales in 2016. Thank you for your inspiration and tips.
Russell Liebowitz . CEO & Co-Founder, BroadStaff, llc
Financial Success in Recruitment Industry – Digital (PDF). April 2007,updated on March 2016, by Dougles Chan (Author)
Chapter 1 – A BIG Congratulations to YOU
Congratulations! Your decision to invest in this manuscript is perhaps one of the most important decisions you have even made, why is that so? The answer is simple, because you have taken the first step of ACTION to achieve your own PERSONAL and FINANCIAL FREEDOM.
Your decision to invest in this manuscript shows that your strong desire to achieve MORE than what you want at your current situation, be it personally or financially.
Many people claim and say many things and they never take action but you decided to take REAL ACTION, this is one of the most important aspects in achieving success in life.
It is important to know that I will do my part to guide you and show you all I know about the industry and I will hold nothing back in order for you to be successful. Hence you must also approach this manuscript with an open heart, with faith and most importantly – MASSIVE ACTION!
You must also understand that I can show you all my HIDDEN secrets and teach you the best way to achieve personal and financial freedom but if you do not do it and take any action on it, then it will be completely useless, isn’t it? The rule is this – Read this book cover to cover, page by page.
Hence, putting all else aside, VERY IMPORTANTLY – YOU MUST TAKE MASSIVE ACTION. Alright, let us step on the accelerator now and let the journey begins!
“The journey of a thousand miles begin with the first step” Confucius
Chapter 2 – My First Interview with a Recruitment Company
It went back twenty years when I was still a teenager searching for a job. I flipped through the newspapers, calling a couple of telephone numbers and I was granted 1 interview as an inventory controller.
I put on my pressed shirt and took the journey into the heart of the commercial district – Raffles Place. Entering into the district was an eye opener for me. I took the elevator up to the top floor and located the unit number I am supposed to go into.
When I was outside the company door, I looked at the signage and it read XXX Consultancy. I was wondering, what does the job of an inventory controller got to do with a consultancy company. I could not figure out an answer but I entered the office anyway.
I approached the receptionist and informed the sweet girl that I am here for an interview. She greeted me with the sweetest smile I had ever seen and passed me an application form for me to fill up.
It seemed a lot of things to write in the four-page application form and it took me about 20 minutes to complete. The forms were the first application forms I had ever filled.!
After filling in the form, I approached her and handed the form, looked at her enchanting eyes and said, “I am done~~~~ anything else I need to do?”
She said, “Thank you so much! Do wait for a couple of minutes and the consultant will be with you. Do have a seat over there and help yourself to the water at the water cooler if you are thirsty.”
I thanked her and waited at the row of seats beside the receptionist’s counter. I noticed that there were another four people waiting at the seats also and I took the only empty seat available.
I was waiting anxiously, thinking to myself, what should I answer when the “boss” ask me this question or “that question” ,etc.
My mind was filled with questions as this is my first interview in my life!
10 minutes gone….nobody attended to me…
22 minutes gone…. The other four people in front of me had already finished and left. I was still waiting…
30 minutes gone – Wow! it’s been a long wait. I approached the receptionist to check what was happening. She mentioned that the consultant was still unavailable and would be with me very shortly.
38 minutes gone by, a young lady, about 1.6 m tall, which I reckoned was about 22-24 years old approached me with a file and said, “You must be here for the interview for the post of Inventory Controller?”
I acknowledged and she brought me to a small corner where I could hardly squeezed in. Both of us cramped into the corner and sat down. It was not even a room at all. I reckoned the whole place is not more than 1000 sq ft and the place was filled with many tables and chairs.
The interviewer showed me her business card. Her title – Senior Consultant, Tracy C.
Wow! I thought to myself, as far as I know, “Consultant” ought to be someone who was an expert in something and a young lady like her was already a Senior Consultant. She must be somebody great!
I was wrong! The first sentence which came out from her mouth was “You! No experience in working! Your resume is the worst I have seen!”
I was shocked and was also in a loss for words! Not only did the sentences she had used were not professional, the way she spoke was like a very uneducated person!
She continued, “My client, KS Semiconductor from Japan, needs an Inventory Controller and based on your experience, you have no experience in the area, do you think you are able to do stocktaking?”
I answered: “Though I have no experience, I am willing to learn from scratch. In additional, I was an ammunition store man when I was serving my national service the in army, it should not be much of a problem. ”
She said, “Alright, I will send your resume to my client and inform you the outcome soon. Thank you for coming in today.” She showed me the way to the door.
I looked at my watch. 8 minutes of interview….Wow! That was fast and “efficient” and laughing on my way out and finally understood what an employment agency was all about.
|Pointer 1 – An employment agency is a third party that assists companies (Clients) to search for suitable candidates that they require in a specific requirement or condition. It can also be classified as a party that helps candidates to find a jobs too.|
One week later, I received a call from Tracy. It was very unexpected. I was told to go to KS Semiconductor for an interview. I was glad to receive the call because it showed that KS was interested in me that was wonderful because would have the opportunity to be hired for the first time in my life!
Tracy informed me of the date and the location of the interview and reminded me not to be late for the appointment. I thanked her for the information and assured her that I would be punctual
Chapter 3 – My First Interview
On the day of the interview and I arrived at KS Semiconductor, a Chinese lady opened the door and I told her I was here to meet Mr. Watanabe. She showed me to the meeting room with a seating capacity of six people and asked me to wait for a while. I looked at the office and realised that it was a small company with less than 10 staff. The office should be less than 1000 square feet, with about 10 tables spreading around an open-concept office.
She left the meeting room and I overheard her talking to a few people. “The boy for the post of Inventory Controller is here.” Subsequently saying another few sentences in Japanese which I do not even know what she was talking about. Subsequently I realised that her name was Irene.
Few minutes later, three tall men walked in and I realised that they were all Japanese! Oh no, I do not even know how to speak their language! How am I able to communicate with them!
One middle-aged handsome guy who sat in the centre looked at me said with a Japanese accent, “You are here to apply the Inventory Controller, Ka?”
Ka? What’s that! I anxiously replied, “Yeesss, Inventory Controller, YEsss!”
Although the fluency of his English was not even acceptable, I could understand what he was saying.
During the interview, the three Japanese guys asked me a couple of questions and I guessed I answered them extremely well as I could feel that we were actually having a lot of fun with me during the interviews. The entire interview lasted about 30-45 minutes. They thanked me and said they would inform the “agency” whether the interview was successful.
|Pointer 2 – Usually the client will inform the agency if they are interested to hire the candidate.|
After I left KS office, I was feeling hungry and went to the nearest café for my lunch. It was quite a lunch crowd and I was having a hard time finding a place to sit! It took me about 30 minutes to find a place! Oh my and the food was not cheap! S$5.00 for just simple meal that time was truly costly! After having , my mobile phone rang. Tracy called!
“Hi, Dougles, this is Tracy. Remember the interview you went earlier? The company had decided to give you the job and they are offering you a salary of $1,400 per month! Can you start work next Monday?”
I was so happy and accepted the offer immediately. I also thanked Tracy about it. Wow! $1,400!!!! That was a lot at that time and without any experience, they were willing to hire me! Perhaps it was because I made them laugh or perhaps due to other unknown reasons? I am not sure, but I really did not bother because I GOT THE JOB! (I finally knew every bit of the reason now! I have discovered it and written it in another of my manual – Job Seekers Power Manual which will reveal the simple techniques and secrets on how I actual use NLP (Neuro-Linguistic Programming) without even realising it. This manual will teach and show you how you can create a lasting interview with little effort. Most importantly, your chances of getting a great career will skyrocket!
In the Job Seekers Power Manual itself, I have also included more than 10 actual case studies on Candidate Marketing which will be discussed on chapter 13 of this manuscript.)
“Luck is preparation meeting opportunity!” Denis Waitley
Chapter 4 – My First Day @ Work
On the first day at work, I arrived on time and started my exciting journey at my first job!
What I have learned @ KS:
- Always be punctual, the Japanese DO NOT LIKE people who are late. Even if we are not dealing with Japanese, we must always be punctual because we have to respect other people’s time.
- Personal grooming is important, dress like a winner and you will look like a winner.
|Pointer 3 – Normally the longer the interview, the greater the interest the company is going to hire you!|
During my work at KS, Irene told me that KS had paid the XXX consultancy a certain amount of money for the service to help them search for an Inventory Controller.
|Pointer 4 – Client will pay the agency a fee for the service upon successful search for the position they are seeking to fill.|
Subsequently, I stayed in KS for about 4 months and decided to leave as I am planning to pursue my studies in business. Before I left, I handed my duties to another guy who was also introduced by Tracy again!
|Pointer 5 – Agency usually does not charge the candidate any fee, however, sometimes they do!|
I was wondering, did Tracy earn any commission from the transaction? The answer was a definite – YES.
|Pointer 6 – Generally the agency does not charge the client any fees during the interviews or when there is no successful placement. However, minority of the agencies do charge a service fee upfront.|
Chapter 5 – The Journey to Diploma of Romance
The decision to leave KS was one of the most important decisions I have ever made. I remember when I was studying in my secondary school my results were only fairly average. I passed all my subjects but all the results were not good enough to go to the next level and to be honest, I was in the Science stream and the subjects did not interest me at all. I had absolutely no intention in pursing further into the Science stream and I knew since the age of 16 years old, my interest was in business.
I joined the full time course in Diploma in Business Administration and that was where The Journey to Diploma of Romance started!
It was a great surprise to me when I received my results in the first semester, four subjects, Business, Accounting, Economics and Communication, they were all A’s! I could not believe myself as I have not even study them at all!
|Pointer 7 – If you do what you like and like what you do, your effort will usually yield double the rewards!|
All I have done was spending 10-15 minutes every day after class and revised what the lecturers had taught me! Many of my classmates were amazed at my results and asked me for help when they were unsure of the subjects.
Some of you might wonder how I did it. The secret is – I know the tricks and short cuts…which is the same theory, I will show you the tricks and short cuts to make things faster and easier over here.
Another amazing thing about the whole process I remembered was that there was a particular topic about public speaking and everyone needed to go up to the stage and do a presentation on any topic they can choose!
I have never done any presentation before and I DID NOT LIKE IT and did not feel comfortable about it. Like most people, I have stage fright!
To my amazement, I decided to tell them a story of what love is about and my experiences with it. Of all the 60 presentations from my classmates, I was given the overall best results in the presentation! It’s something like I have never ever done before and I got the best of the best! It was amazing and with that my confidence in public speaking grew tremendously.
|Pointer 8 – Sometimes in life, you will never know the outcome until you really try, the results can be quite amazing and rewarding!|
During the period I was studying the course, I got along well with a couple of gals and we actually build a certain friendship with someone – DK. There were no sparks at all between me and her at that time. It was all pure friendship, after all I was also not really in the mood to build any special relationship as I wanted to focus my time on the studies of business where my passion was.
Chapter 6 – My First Business
I left school and decided to venture into my own business. During the period I was studying, I did a couple of research on a few businesses overseas and decided to venture into it.
I decided to raise my capital by giving tuition during my spare time. I managed to save about $10,000 as my initial capital.
I rented an office on the 2nd floor near Bugis Junction and it was about 900 sq ft with three rooms and a toilet. It was a big office for me. I managed to register a business and negotiated the rented unit plus organized the renovation within 4 working days.
|Pointer 9 – Focus your time on one thing at a time. If you focus on too many things, the results will usually be not outstanding.|
I decided to sell information to overseas customers and with a little creativity; I managed to get many distributors in many countries for my services. Within 30 days of my start-up, I had already secured 2,000 clients with half of them already paid for the service. Cash were flooding in like madness; even the postmen were carrying stacks of letters from overseas with money in every envelope! (There was no email at that time)
During the period when I was almost sleeping every single day in my office, I flipped through my old telephone book and decided to call the friends I had when I was studying in the previous school.
I try my luck to call the residential number of DK as I knew she should not be in Singapore as she was most likely back in Indonesia after she had completed her course.
An old lady whom I learnt was her aunty picked up the phone and I asked for DK. She mentioned she was not around and would be back that night. I was glad that she was in Singapore as she had just returned again for a vacation.
On that very night, DK called me back and she told me she was helping her friends in a certain project for a short period and would be returning to Indonesia very shortly. We met up and realised that her younger brother was studying here to sit for the O levels’ examination. He was then having some problems with his English Language. I volunteered my tuition service and they accepted the proposal.
Hence, every time I gave the tuition to her brother at McDonald’s, I would purposely go and meet DK at her friend’s place and walked her back to her home.
It was about only on the 8th occasion when she told me that she was going back to Indonesia as she felt she was away from home for too long. She also mentioned that her parents were arranging a match-making session for her and she joked that she did not like that guy at all!
When I heard about the word – “Match-making” I did not know why but there seemed to be a sharp-knife stabbing my heart!
Instantaneously, I cracked a joke, “Since you are intending to get married in Singapore, why don’t you marry me?” (In my mind, I was serious about it!)
She answered, “I know you are a nice person, but honestly I do not think you are my type..”
My heart was broken into pieces when I heard her rejection, but I was pretending that it was a joke to prevent any embarrassment for both parties.
However I continued to phone her long distance every day for at least fifteen to thirty minutes after she returned to Indonesia to chat with her. She knew I was interested in her but I told her that I did not expect any return in these calls. (I really meant it at that time.)
We continued to become friends and chatted over long-distance calls and my telephone bill was about S$5,000 every month. (This is not a printing error, it was S$5,000!!!!) until to-date, she never know about it…
|Pointer 10 – Initial rejection may not mean a “NO”, with determination and a never say die attitude, you can always turn the table around. Most importantly, you must know why the other party says “NO”|
Chapter 7 – My Trip to Solomon Islands
My business grew to a scale of 20,000 customers based in Solomon Islands and another 20,000 worldwide. I had to make a trip over there to Solomon Islands to explore the possibilities of opening up a branch office over there.
Within 2 days, I packed my bags, got a ticket to Brisbane, Australia and took a transit plane to Solomon Islands which the plane seems like it is going to crash anytime. My business in Singapore was left in the care of my good friend Frankie Teoh to manage.
It was about a two-weeks trip and I realised that the place was not conducive enough for me to set up a business there. The main reasons were:
- It took a very long time for the foreign investment board (FIB) to approve a foreign business registration; there were even cases where it took about 7 years to approve! Compared to Singapore it takes less than an hour!
- The corporate tax is 50%!
- Occasional cyclone happens on the islands, which can damage buildings and properties. I cannot imagine my office being ripped into pieces! The business environment was not healthy for any foreign business to be in, as such, I gave up the idea.
- Although it was considered a third world country and with plenty of potential for growth, the overall market condition was not good.
|Pointer 11 – Always check your business environment, make sure it is to your advantage, if it is not, and consider changing it to an environment where it will best suit your business nature.|
When I returned to Singapore, Frankie told me that there was a lady who kept calling my office almost everyday. Frankie did not tell her where I was as I did not inform anyone where I had gone to. She did not leave her name but I knew it was her…
I called her back when I reached home and she was SO HAPPY to hear my voice! At that very instant, I knew that she do have some feelings towards me and during the conversation, she told me that she was very worried and asked where I was during the period when I was missing in action. She also wrote a letter to me confessing her feelings towards me at her end but the letter was never sent to me, instead, she read it over the phone to me.
|Pointer 12 – With ultimate determination, one can achieve almost anything!|
It was simply amazing, the confession of her feelings towards me made my tears dropped which I had never experienced before. My whole body was shivering too and it made me pop the powerful question again.
I asked her “Will you marry me?”
She agreed and we got married in one of the best hotels at that time – Westin Stamford within 2 months! It was a simple and yet grand wedding. We invited many of her family and relatives from Indonesia, some even from Hong Kong. The rest is history….
Chapter 8 – Introduction to The Recruitment Business.
In this part, I will cover the technical aspects of how and what a Recruitment Agency is about.
The basic principle
What is a Recruitment Company?
A recruitment company (agency) is a third party that assists the clients as well as the candidates to match jobs. Once there is a suitable candidate, the agent will make recommendation to the clients and upon any successful introduction, the agent will charge a certain amount of fees to the client. Under standard situation, candidates should not be charged.
Usually, the charges will be levied to the client and will vary and under current market practice, is about 100% of the 1st month salary. Some “desperate” agents charge 40-60% but usually such agents will not last in the market.
Example of how the fees are charged:
The agent who successfully helped find a suitable candidate for the client at a starting salary of $2,000.00 per month, and when they had earlier agreed a fee of 100% of the one month salary , the agent will be paid $2,00.00 as a service fee by the client.
Note that the percentage agreement between the agent and client must be agreed and confirmed by both parties before any work is done.
Generally I do not practice a difference in percentages for different clients as it will create more problems when clients discover that there is discrimination in prices. I would again advise you to charge a standard price for every client.
Usually, the higher the salary, the higher the percentage I will charge of the starting month’s salary. Please refer below for an example:
Salary $1,500 and below @ 100%
$1501 – $2,500 @ 120%
$2501 – $4,000 @ 150%
$4,001 and above @ 25% of annum salary
|Pointer 13 – The higher the salary the company offer, the higher I will charge the client.|
The higher the salary range, the tougher it is to source for the right candidate, hence, it is perfectly fine to charge a premium for a more difficult job.
The percentage mentioned above is just my example. You can choose to charge at any percentage you deem fit. However always take note of the law of demand and supply, the higher the price, the lower the demand = the fewer clients you will have.
You will need job assignments before you start the ball rolling. Each client will send you their requirements that they want to search. The requirements sometimes can be as long as a few pages, however, usually ½ – 1 page will be challenging enough.
For Example : One company looking for an admin/secretary
JUNIOR SECRETARY (ADMIN ASSISTANT)
- Typing of quotations, tenders, purchase orders, invoices, correspondence
- To provide administrative and secretarial support to Secretaries and Sales Team
- GCE ‘O’ Levels
- Ability to multi-task in a fast paced environment
- Good team player
- Must be proficient in MS Word/Excel
|Pointer 14 – Always good to focus your time on a few types of assignments, too many different assignments can drain your energy and resources.|
General rule of thumb:
- The more requirements from the clients, the harder the assignment it is going to be.
- The lower the salaries offered by the company, the harder to find the candidates.
- Candidates usually prefer to have a 5 days/week work rather that of 5 ½ day/ work week.
- The higher the education level needed, especially in terms of technical aspects, the more difficult you will be to find the candidate.
- If the clients give you 10 – 15 requirements to find a candidate that pays less than $2,000, and they want all the requirements to be perfectly matched, please do not waste your time, move on to the next assignment or to another company.
- There is no such thing as perfect requirements. If you can get about 70% of the requirements, it will be good enough.
- If the company is very reluctant to provide more information on the job requirements or the company itself, be very careful. There might be certain information which the client wants to hide from you.
- If the company does not even have a website, be extremely careful and ask this question, “What KIND of company is it if they do not even have a website?” Do your homework before committing your time and effort to it.
- If the company has less than five staff, do be careful, the company may not even have the money to pay for your service fee! It does not mean to say that all companies under 5 staff are “POOR” but it’s a good guide.
The Contract and the Agreement
It will be a standard practice to forward a copy of your contract to the client and this should be signed before starting to source the candidate for them. If they were to say that they will sign after you search for them, forget it, move on to the next company.
Ask them to sign the agreement first. You never know what will happen next as the company can always say that they are not agreeable with the rates and negotiate for better rates after you have done all the work!
|Pointer 15 – Always sign the contract first, nothing else matters!|
Worst case scenario is that they will not even pay you at all! Mind you, this kind of thing does happens!
** There are cases where clients will not even pay you after they sign the contract, do be careful about such companies.
Of course you can always go through the legal way to recover the amount but it’s not worth the time and effort unless the amount is very substantial.
Remember, always make sure the client signs the contract first, it’s always good to be safe than sorry. A professional company will willingly sign the agreement before asking you do the job. Do not be afraid to offend the “BIG BOYS”, because it is always the BIG boys that are always “bullying” the agencies! Of course there are good “BIG BOYS” out there for sure.
Chapter 9 – The Pitfalls & The Market Tumours
The true colours of clients’ assignments
Great! Client XYZ Pte Ltd gave you the assignment after meeting them after several conversations and emails. You worked on it, placing 100 advertisements in the internet, placed some paid ads in the newspapers, etc. Then you managed to get some positive responses. You filtered the resumes/CVs you received. After hours of filtering, you interviewed a couple of candidates and decided that two of the candidates are very suitable.
You send the CV of the candidates to the Client XYZ. One day gone, no reply for the client. Three days gone, no reply too… You decided to call the company.
“Good Morning, Mr XYZ, I have sent you 2 CVS of the potential candidates to you, have you got it?
Mr XYZ, “Oh yes indeed, I have received. Thank you so much, I am so busy that I have not got the chance to go through it, give me a few more days and I will revert to you”
|Pointer 16 – The clients can promise you anything, but it’s the final deal that matters!|
Few days gone, you received an email from XYZ saying, with regards to the position above, would like to inform you that the position had already been filled, thank you for your time in assisting the search…
OH MY …..!!!!!
You have spent many days posting over 100s of advertisements…
Spent over hundreds of dollars in the newspaper ads…
Spent hours filtering CVs.
Spent your time interviewing candidates….
The Result = “thank you for your time in assisting the search…”
Behind the scene, what really happened!
XYZ company might had sent the same assignment given to you to perhaps 10 other different agencies, maybe 20 of them or perhaps even 50 of them or even more!!!! I will not be surprised at all that they had sent the same assignment to different people within the same agency! (Each consultant usually works independently.) This is to say that you are potentially competing with perhaps 50 or even 100 parties at the same time!
XYZ company may also place their own advertisement in the newspaper or online ads! Isn’t it?
Your probability of closing the case? 1 to 5 % ONLY!!!
- The client has no obligation to inform you that they have sent the assignment to more than one agent. Even if they do inform you, you cannot stop them!
- The client has no obligation to even inform you that the position has been filled/ closed. If they do, it’s a good gesture, but many of them do not do so! Hence, sometimes you work till so hard and when you sent the CVs to them, they will inform you that it had been filled!
- The client does not need to assign you as the sole agent!
Let’s say if you are lucky enough and managed to get the candidates to attend the interviews. The chances are that they have already arranged more than one candidate to go for the interviews for the same position via different sources.
Your probability of closing this case? Perhaps 20 – 30%
Behind the scene, what could have happened!
1) Well, the interviewer might be very interested in the candidates that you have recommended and have a small discussion with HR (Human Resources). After some discussion they find that your price compared to another agency is more expensive, hence they made the decision to hire another candidate from another agency! How’s that for your hard work?
|Pointer 17 – Follow up with the candidates after they have been interviewed by the clients. You can get many interesting feedback from them and also gain more insights about the client too.|
2) The interviewer loves the candidate you introduced! They want to hire her, but they hired her under another company name! The final outcome? The candidate is not hired by the client but by another company which is related! (Of course they will deny everything.) Your hard work had all gone down the drain…Sad isn’t it? These kinds of things do happen!
Read on, there are more to come….
Chapter 10 – Candidates: Love them or Hate them?
Remember the section I mentioned where the client assign the assignment to many agencies? Hey, I have “GOOD” news too! The candidates you are talking with are DOING THE SAME THING!!!
They sent their CV not only to you, but to over 50 -100 companies or agencies!!! How’s that for “motivation.”
|Pointer 18 – Most candidates will go for the company that offers the highest salary. If you know your clients are not offering a good salary, you will have an idea how your chance is of getting the deal done!|
There will be many times where you are almost closing a deal and the candidate will tell you, “I have a better offer from ANOTHER COMPANY! Thank you for helping me!” You can spend 1-2 hours or more of your time building rapport and creating bonds to ensure that he/she will stick to you. However, let’s face it, if there are other opportunities given to them by other companies and at a better salary, THEY WILL TAKE IT! Forget about friendship or even rapport building!
Your probability of closing this case? Very likely 1% or less
Are you getting the feel of how “TOUGH” this industry it is? Read on, there are more to come…let us do the calculation on the whole rate of success…it will look astonishing and frightening….
Chapter 11: The Realistic Numbers that Spells Trouble!
Let us be practical and realistic, we need to work on the equation to see your chances of success in this recruitment industry:
Client and Candidate = Sales
Probability of closure
Client( 1% – 5%) X Candidate (1 %) = ???
Let me share with you the final “GOOD” news, your chances of closure on that case is absolutely less than 1%!!!!!! Not even 0.5%!
So if you work SUPER hard and have 100 assignments within a month (100 assignments a month is consider a GURU already using traditional methods), you should close 1 case. Perhaps 2-3 cases if you are lucky!! How’s that for a GREAT BUSINESSS in RECRUITMENT? Fantastic isn’t it?
We need to really wake up on this right now…it really spells TROUBLE!
I am not trying to be sarcastic but I want to bring one message to you – It’s really a HELL out there!
That’s why so many consultants quit and change jobs after they have failed to achieve their targets, and that is the MAIN reason why so many agencies closed down!!! Of course there are so many new ones opening up too. Even those who are surviving are barely breaking even!
The very fact is that the current system does not work and it will not work in the future, don’t fall for it!
Remember the DOT COM era where almost everybody flopped (Indeed a flop) and everyone is trying to have a piece of the big cake? Everyone was following what the Romans did, in the end what happened? The bubble burst together with the Romans!!!
Special Section: Careful of The Back Stabber
If you have read until this section and really feel like going to start your own recruitment agency, I will want to stop you from doing so because we have not reached even the surface of the whole “Secret.”
I remembered many years back where I taught a few neat secrets to some of my fellow consultants. They actually brought in a lot of sales. They were so confident that they set up their own agency using the techniques I taught them. They actually believed they would make a lot of money!
Within one year, the company fell into the trap of the “Market Tumours”. At that point, I had not even shared with them about the “Market Tumours.” It’s a pity, they were very good consultants. The company did not survive and went into bankruptcy after that.
In fact many people copied the way I marketed. It goes to show that the methods I had used were working very well. However, they forgotten that business is more than just marketing itself, it combines many factors to make it really work. Thus, you have to learn all that is being taught in this manual.
My advice to you: Learn EVERY part of this manual, do not skip any part, once you skip any part and start your own business, you maybe doomed for failure!
Chapter 12: Re-Inventing the Wheel
Let’s continue back from Chapter 11.
So much of a great “motivational” overview of the system and how inefficient and ineffective it can be. When I went through the whole process, it took me less than 3 months to realise how “GREAT” this system is and I can foresee what I will land into in months to come after you set up your agency.
I cannot let this Market Tumour stand in my way.
|Pointer 19 – Do what the Romans do and you will be out of business! You will need to reinvent the wheel.|
I know that I can come out with a better method of “recruiting” so that I can assist more people and also achieve financial freedom.
One fine day, I came across one resume that is so interesting that I told myself, I got to see this lady before I recommend her to my client, I met up with her and at that instant I came out with an idea. It turned out to be a great idea eventually.
I told the lady, can I create a small portfolio of you in my website? I asked her, “Give me a couple of your casual photos and I would write some points about our interview with what kind of industries you are keen in”
She said “YES”. This is how one of the SUCCESS FORMULA is being created.
Chapter 13: The Concept of C Marketing
C Marketing, stands for Candidate Marketing – In simple terms, instead of asking clients what they want, I ask the candidate what he/she wanted. After understanding what he/she wanted, I would market that particular candidate to ALL my clients.
I will create a FULL webpage all about him/her with her/his photos. It’s almost like a photo album but with his/her resume in it. I do not use passport photos which are absolutely BORING! The more interesting the photo is, the better it is! Of course if you do not think photo will help due to some “technical” reasons, by all means, just put the resume there. The keyword is – it must be interesting.
|Pointer 20 – Candidate marketing is the latest and surest way to find a job for the candidate.|
I will write some comments about the interviews and put it in the webpage.
– What is his/her expected salary?
– The preferred industry he/she wants to go into.
– My comment about this candidate.
– Other relevant information which needs to be taken note by the potential employers.
- The Process
After I have created the webpage and uploaded it to my webpage, I will email to 30,000 companies, regardless of what industry or what location they are in, it really does not matter at this point.
Once I receive any phone call or email from the potential employer who wants to interview him/her, I will do the following filtering process:
- Check the company information, the location, industry, etc
- Check what position the company is keen to explore with the candidate
- Check the working hours and salary range.
- After gathering all the data of the company, the I will inform the candidate. If the candidate is keen, then arrange the interview.
- Filter out those companies which I believe the candidate will not be interested, such as salary mismatch, location too far, job scope not to the candidate’s expectations, etc.
- The Actual Result
I have over thousands of hits to the webpage itself and my telephone was ringing non-stop for the next 4-5 hours enquiring about the candidate after it was hosted. I was so exhausted that I decided to hang up the phone so that people cannot reach me! (I was working alone and I have no assistants at all.)
My email Inbox was filled with enquiries about the candidate!!! For the coming weeks I had continuously received phone calls and email about this candidate. I had to delist my phone number from the website and email to ensure that my clients only can contact me only via email!
I filtered all the non-qualified companies and the candidate herself agrees to see 4 companies for interviews.
|Pointer 21 – Candidate marketing will create multiple streams of interviews for the candidate so much so that they will have too many job offers to choose from!|
In 2 days’ time, she had gone for four quality interviews. She got a job in record time with a better pay package and a better company!
The best part is that I have pushed my price UP by another 100% on my usual charges and the company was still willing to pay for it!
I tried the same method on the 2nd person the following week and the same result happened! I was overjoyed and looking forward to help more people find suitable jobs!
Initially, it may seem a bit tedious on the process, but after some rounds, it will become so easy that you can close your eyes and do it! (Ya, I am BS but I guess you get my point. J )
The rest was history and I never look back after that. It was a proven successful formula and guess what, some people tried to copy what I was doing but without much success. The reason ? DATA + X Factor
Chapter 14: The Ultimate Secret
Formula + Data + X Factor = Success
You have the formula above now and the next very important thing is the DATA.
|Pointer 22 – Data is defined as email addresses of potential clients that might need the recruitment agency services.|
How I collect data?
It is considered quite fortunate that I have over 200,000 companies’ data that are from my previous businesses. I used them with a mass emailing software and by using them, I can send emails to hundreds of thousands of companies within minutes, with personalised messages!
These are the various ways I have collected those email addresses from which are not exhaustive:
- Internet portals, job search websites, business websites.
- Newspaper classified advertisements
- Old name cards
- Referrals from your friends or relatives
- Yellow pages, directories, etc
- Flyers or brochures from advertisers
It is important that when you collect the data, you will need to filter those which are from the same trade or any companies you believe is not relevant.
You can download an email harvesting software where you use it to extract all the email from any unsecure website.
Imagine you can get all the email address of a job portal website just by clicking a button! It’s amazing how wonderful technology can do for you. Each job portal website automatically gives you thousands of emails and in less than one day, you can have more than 50,000 email addresses of companies in your database! It actually saves you thousands of man hours surfing, typing and keying in the data!
You can have the best candidate, the best data but if you lack the X factor, then it will not work also.
What is this X Factor, let us examine:
- Your marketing message must be appealing enough to get the person to read your email or message
- It must be real, simple and yet down to earth.
- When you market, make sure you are really sincere in helping them.
- Treat this candidate that you want to market as you are the person applying for a job.
Well, there are still many factors on the X factors but I guess you get my point, the word is – Sincere.
Chapter 15: Multiplying Your Source of Income
It takes some practice for the process of candidate marketing and I would suggest you do the following:
- Try one candidate on the first week, get the feel of it. Carry out the interview, create the web page and market it. Once you have successfully found a job for the candidate, then move on to the next potential candidate you would like to market.
- Once you are getting the hang of it, try to market two candidates per week.
- After you are comfortable marketing two candidates per week, move to the next level of 3-4 candidates per week.
- Move on to the next level of 5 candidates or more per week.
- What’s next? You will be so busy that you will be crying help for assistance!
Chapter 16: The Secret That Start with the Letter F
FOCUS, FOCUS & FOCUS.
After I applied the success formula, I had a pleasant surprise. Many companies were automatically sending me the job details of the assignments they were seeking for without even asking! Many of them even wanted to meet me personally in which many a time I declined.
|Pointer 23 – Candidate Marketing automatically makes the potential client email you their current and latest jobs’ requirements and assignments.|
I do not even have to call them or visit them to make them give me the assignment. It had come to a stage where I was flooded with hundreds of assignments every month!
It’s truly great to have assignments to work on. I also distributed the assignments to my consultant usually fifty each. It was considered to be a lot of assignments by industry standard. Our Consultants were initially overjoyed despite being overloaded.
I was so happy and over-confident about the success of the new formula that I actually forgot about the “Market Tumours”!
Within weeks, I noticed that my Consultants seemed to be losing focus. They were extremely overwhelmed with the high number of assignments I gave them. Not only their performance dipped, the number of people we were able to help to secure jobs dipped too!
I quickly called for meetings to understand what had happened. I got to the bottom of it and implemented the following important rules:
Firstly, focus 80% of your time on Candidate Marketing.
Next, focus 20% of your time on the assignments given by the clients or potential clients.
Within one week, I saw drastic improvements. Total candidates assisted jumped by another 200% from the original level before the dip!
Final results, each consultant could help 10 to more than 20 people secure jobs every week.
Again, take note that there are actually 2 main focus in this FORMULA:
- Focus on the Candidate Marketing (80% of your time)
- Focus on top 3 clients. (20% of your time, 80% focusing on top 3 clients.)
|Pointer 24 – Too many assignments kills the momentum. Too many is not always good!|
That is to say that:
We only focus on 2 areas, Candidate Marketing and top 3 clients assignments. Any other available time we have will be allocated to the rest of the client and assignments…Nothing else matters.
Definition of top 3 clients’ assignments’: Clients who had already have some transactions with you before and are GREAT paymasters.
Hey, you might ask, what about the rest of the hundreds of clients and assignments? Isn’t it a waste if I were to ignore them? They are tremendous potential clients and profit too? Isn’t it?
History had proved again and again that having too many things at one time will not help you. In fact, it will be to your disadvantage instead.
Remember the Market Tumours – Do not fall for it!
|Pointer 25 – Re-read the Market Tumours again if you are unsure. It’s always good to understand the basics before you move to the next step.|
Hence, remember this very carefully – FOCUS! That’s all. Nothing else matters! Don’t be a “smart” guy and focus on too many clients and assignments at one time, it will get you nowhere. (I was one of them)
Being FOCUS and doing one thing at a time applies not only in this recruitment business, it can be applicable in your other businesses and personal matters too.
Chapter 17-The Forest Fire Technique
Have you seen a forest fire before? The fire spreads so fast that it can wipe out the whole forest in a very short time and even the fire-fighters cannot really do anything about it!
Use the forest fire technique! It works wonders!
What is a forest fire technique?
In simple terms, it is something that spreads so fast that it will go out of control! In this application, I show you a very simple formula on how it works:
Step 1: Help 1 person find a good job at lightning speed, he/she will spread your name to 2 of his friends.
Step 2: Help the 2 friends to find a good job at lightning speed too. They will spread your name to 4 of their friends.
Step 3: Help the 4 friends to find a good job at lightning speed too. They will spread your name to 8 of their friends.
Step 4: Help the 8 friends to find a good job at lightning speed too. They will spread your name to 16 of their friends.
And it will go on and on….
What will happen? Many of the “friends” will email you or call you to ask you to help them to get better jobs, be it whether they are currently working or not.
Now here’s the real fire, remember the first few people whom you help? They will still continuing recommending other friends to you! This will create multiple spiral-cycle effect and you will come to a point where you will not be able to handle all of them! The fire had come to a point where there are so many fire spots and you will not be able to handle them alone!
This exponential technique is EXTREMELY powerful; do not use it unless you are ready for it!
The Secret to Forest Fire Technique – You need to find a job AT LIGHTNING SPEED for the candidate! If you take your time, this fire technique will not work.
|Pointer 26 – How to use Forest Fire Technique – Use the C Marketing Technique and it will automatically create small fire sparks. Once you find jobs for them at lightning speed (In which you add more fuel) the fire will become bigger and faster!|
Chapter 18: The Business Aspect of HR (For Singapore)
If you are not from Singapore you can skip this part.
Basically there are different types of companies, the list as below and the websites will give you more information how they can be set up :
General guide for Sole Proprietorship or Partnership : For people who have limited funds, for start-ups who are starting their first business. Please take note that this type of business have unlimited liabilities and you can be made bankrupt by creditors who are owed more than $10,000.00 each. (Under Singapore law).
LLP is more suitable for two or more partners where they can enjoy certain limited liability.
A Private Limited Company is for people who have some extra cash and would like to have protection if the business fails. This will be an ideal setup compared to the other two.
Order of preference on which type of formation is ideal
1st Choice: Private Limited Company
2nd Choice: LLP (For partners)
3rd Choice: Sole Proprietorship or partnership
|Pointer 27 – Private Limited company formation can be expensive, but it is worth the protection on your personal finance and assets.|
Chapter 19: Getting the License as Easy as ABC
If you are not from Singapore you can skip this part.
It is essential to obtain a licence when you want to operate a recruitment company. You can visit the link below to see the procedures and the steps to take.
* Note that if you are not operating a business that involves maid agencies, there is no necessity to for to attend a course and examination.
Basically, the basic requirements are as follows:
- A company, business or LLP entity
- The person, which is you, to apply for a license via MOM for a license under your personal name or corporate entity.
- A security deposit of $60.000 or $20.000
- You need to take the exam of Key appointment holder and must register your name in mom.gov.sg.
- The applicant should not have record of any convicted offences under the Singapore law.
- If you do not have $20,000 or more in the bank, you can go to a general insurance company to ask them for assistance in providing a security bond of $20,000 – $60,000 as a premium.
|Pointer 28 – You can get a license without having hard cash in the bank as a security deposit, use leverage offered by the insurance company!|
Note that each of the insurance company’s requirements varies and please do your homework before committing to any of them.
- It is advisable not to operate the business without any licence. The first time offender can be fined up to S$5,000 and up to S$10,000 for a repeat offence. (The MOM had revised the penalty upwards from 1st July 2011), please check with mom.gov.sg for details. The worst thing is once you have been fined before, your chances of applying for a licence next time will most likely be unsuccessful.
|Pointer 29 – In Singapore, the basic rule to apply any licence is quite straight forward and simple. Provide all the documents they need and you will get things done pretty fast.|
* Please visit your local government agencies to check on any licensing matters.
Chapter 20: The Money Making Formulae
For start-ups, I would recommend following the basic principle of business management and accounting.
In simple terms, maximize your sales and minimize your cost. It’s a simple process but sad to say not everyone can follow it due to too many attractive packages in the market that makes you increase your costs.
Formula Number 1:
Maximize your sales and minimize your cost
- Maximize your sales – Use the Candidate Marketing technique with Forest Fire technique together with the power of Focus on chapter 15 and you will definitely get plenty of sales.
- Minimise your cost – I will devote the entire next chapter to explain on it.
|Pointer 30 – Your first objective is very simple – Cut your cost down to almost zero when possible. Next make as much sales as possible!|
Formula Number 2:
Principle of Initial Capital
I came to know of this formula when I was reading an investment book that was about 500 pages thick! One of the chapters highlighted the importance of initial capital outlay.
To make it simple for you to understand, here are the following:
To make money in any investment (or start a business), you must protect your capital to your maximum. If you have $10,000, make sure you keep this capital tightly and no matter what happens, do not let go of this $10,000 in any situation. This money is your capital for emergencies and for the running of the business, to pay the rent, to pay for utilities of the operation of the company, etc.
The point is, if you do not have any money left, you are out of business! No matter how GREAT and POWERFUL your business idea is, it will not work because you do not have the means to carry on!
Hence, the ability to continue to operate is far much more important than any fantastic ideas! Take special note on this – No money = No operations, No operations = No financial and Personal Freedom!
The ability to preserve your capital is always your top priority!
Formula Number 3:
Mind your cash flow
This can be a repeat of formula 1 and 2 but if you take a closer look at it, it is somewhat different. A company can have cash flow problems if they do not manage their income and cost properly. Here is an example:
Company A had generates sales of $20,000 in January but the client will not be paying until 2 months later. At such, for the month of January and February, technically there is no additional cash of $20,000 from the sales in the bank! However, the company is still paying for the rentals, utilities and wages!
Hence, for the months of January and February, the company is indirectly making a loss!
How to solve such problem:
- Cut your cost to the minimum, anything that is not necessary cut it or do not engage in it unless your cash is plentiful.
- Negotiate with the clients to have shorter credit terms.
- Tell the staffs that commissions will be paid only after clients had paid.
Formula Number 4:
Look at things in whole picture
What do I mean by saying “Look at things in whole picture?” in many monetary issues, it may seem very little but when you look at it at a larger picture, it will make a LOT of difference!
You agree to charge the client at 10% discount of your normal rate, tabulate the rate and let’s say you are giving a discount of $150 for a 10% discount.
Multiple $150 by 12 (1 year) = $1,800 (Taking into consideration that every month you close one case)
Or multiply $150 by 10 = 10 transactions = $1,500
Ask yourself, is the whole amount really a lot? Another $1,500 extra or $1,800 in your bank will make your bank account better isn’t it? Hence, always look at the whole figure. Your decision will hence be different.
Preserving and managing your money is the ultimate key to making money, in your life, there are hundreds and thousands of advertisement to catch your attention to make you depart your money EVERY DAY. Always ask this question, do I really absolutely and definitely NEED it, most of the time, the answer is NO but look at the things you have bought, many a times, the things you have bought are things that you do not really need! J
Things to consider before you buy or invest in anything:
- Will this increase my productivity?
- Will this investment create more sales?
- Will this investment save me plenty of time?
- Will this investment cut down my cost?
If you have a YES for any of the question above, very likely this investment will be worth considering.
Most importantly, TIME is your best asset! You cannot buy TIME and if the investment can ultimately free your TIME, usually it will be a GREAT investment.
Some of the investments I always do to FREE my time.
- Invest in a better computer or software that allows me to work faster and more efficient.
- Invest in taking a taxi rather than taking a bus.
- Invest in hiring people to do the job rather than I do it myself.
Always remember this, YOU CANNOT BUY TIME, BUT YOU CAN ALWAYS FREE YOUR TIME!
TIME is your GREATEST asset. Invest heavily on it!
Chapter 21: Sure Fire Techniques and Methods to Cut Your Running Cost to almost ZERO!
- Setting up a business as Sole proprietor is the cheapest and surest way to set up an entity without draining your funds. It costs only S$65.00 to register a business entity! I strongly do not encourage getting a partnership due to potentially unlimited complications from partners.
*Once you have start making money within the next 6-12 months, quickly convert the business into a private limited company. Though more expensive, it is worth it.
|Pointer 31 – Start with a business or partnership entity if you are cash tight. Convert to private limited company when you are more cash rich!|
- Business card creation – There are many printing companies charging at around S$40 per box. Please don’t waste your money. You can go to http://www.namecardonline.com and create your own professional business card at less than $10.00 (Single sided)
* Do not be a smart chap and print from your color printer, your clients are smart enough to spot it immediately.
- Office rental – I do not recommend you to get an office at all for the startup. If you do, please remember that you will need to commit at least 1-2 years with minimum of 1-3 months of deposits. As such, it can cost you around $5,000-$10,000 initially (Excluding any renovation, furniture and electricity deposits!)
- If you do not have that spare cash, I would recommend you to get a virtual office or a business address registration company where the company will allow you to use their office address as a registered office. NEVER use your home address, it is NOT PROFESSIONAL!
Generally, with a virtual office package, all mails to you will be sent to the registered office address and can be forwarded to your home address automatically.
On renting a shared office, there are some places where you can share an office at $500 – $1000 per month, unless you really need a private room where you need complete privacy and quietness to work and do not mind the extra cost, then it can be a good choice or else, don’t waste your money! You still have to pay deposits too! Keep the money in your bank!
On renting a shared table, there are also some companies which provide a table space at $300-$400. If you do not mind sharing with other people and need a good working environment to focus, it will be quite ideal. Remember, usually, there is a need to pay a deposit too!
- Creating Your Website: There are many web design companies providing such services from $1,000 – $5,000. You don’t have to go to them, there are hosting services that are available at less than $20.00 per month and it also includes a business email which you can create and use. You will save a lot of money by doing it yourself. It is not as difficult as you think it is!
All my websites are created via this hosting company and so far it has not given me any problem yet. DO NOT USE websites that share a certain domain, even though it can be FREE. Your website must look like http://www.yourdomainname.com and not like this http://www.otherpeopledomain.com/yourdomain.html
|Pointer 32 – Learn how to use Front Page software. You will need it for the Candidate Marketing process!|
Remember, image is very important! You can save on certain dollars but not some! Once you have come to a stage where your client thinks you are not professional, they will not give you the business. You must act, show and behave professionally!
|Pointer 33 – Personally I do not give my business to anyone who does not even have any website or a proper domain email!|
- Interview location: If you are on a budget, you can go to any café or fast food restaurants to meet up with your candidates. However, do make sure the place you are choosing is conducive for meeting and interviewing. If you can afford it, then choosing a more uptown and up-class café or fast food outlet may be more presentable.
Another thing worth mentioning about interview location is that you try to choose a location that is near to where you are staying, it will save you money in transportation cost.
|Pointer 34 – Choosing an interview location is very important. It shows your character, your style and your taste!|
- Internet access: I will not recommend you to get broadband or fiber internet package under your company or business entity where usually you will need to pay $80-$150 per month. Register one under your personal name and not your company name, it will be cheaper. Apply for a mobile broadband where you can plug it in your laptop or PC. It costs cheaper and also pretty reliable.
- Hiring workers : For a start, do it yourself first, after a few months of hands on, when your workload is getting heavier and your income is regular, it will be the right time for you to hire someone.
- Free lunch and dinner? Yes, I really mean free lunch and dinner, or maybe high-tea! You can enjoy great food at fine dining restaurants or café with a little leverage.
How to do it? It’s quite easy, ask for it! Yes, for those candidates where you have successfully found a great job, the very first thing they will say is that they will give you a treat! It’s the truth! Sometimes you do not even have to mention about it but it is happening on my side almost every day! I have come to a stage where so many people wanted to treat me lunch or dinner but I told them – Keep your money, you will need it for other things! Well, this technique will depends on whether you are comfortable using it but to me, the word – Thank You from the candidate is good enough!
- Your attire: Get at least two pieces of good shirts and long pants (Men) or at least two pieces of professional looking jacket and skirts (Ladies) with a pair of professional looking shoes or high heel shoes. Usually you don’t meet the same candidate for more than twice, unless you are dating them!
You can get more sets of clothing when you are richer!
Word of reminder: Always wear professionally, look smart and brush your teeth before meeting the candidates. Act professionally and you will invite many delightful events!
How to choose your attire: Before you buy the clothes, try it, bring your friend or your mate along, and ask them for an honest opinion. Do not shop by yourself; sometimes people do have different tastes – Which is TASTELESS and they do not even know about it!
Make it simple– Professional is the word, look at the mirror, do I look professional enough? If not find something that is!
- Telephone: Here’s the most important tool you would need, for a start, I would not suggest installing a telephone line for your company to save cost. As there is an installation cost and also activation cost. By the time the line is up, it will easily cost you around $200.00 without even using it. All our major telcos are providing a digital voice phone line packaged with broadband and other services which are much more value for money. Please call them and checked out their competitive rates. You should be able to get some package deals.
- For mobile phone line, I would strongly recommend you to have a caller ID subscription to ensure that you know what telephone number is calling you as sometimes you might miss a call and you can return your call back instantly.
Usually it is cheaper to subscribe to a service under personal name compared to using a business entity. Check with the provider on the costing, you will be amazed how much savings it can be!
- Fax line: If you already have a telephone line installed, you might want to use it as a fax line, only for fax, that’s all. Do not share the normal phone line with a fax line. It is not professional and the client will know that you are a very small player in the market. A fax line is useful only when client fax you the signed contract, else usually you will not even need to use it at all
- Computer/Laptop: This will be your “office” and it is the most important investment you will need if you do not have a computer.
How to choose a PC/Laptop:
– Must have at least 4 GB RAM
– Minimum 500GB of HDD
– A build-in wireless network adapter (For Laptop)
– Minimum of 3 USB ports.
– Must have at least Window 7 or above software. Sorry no apple products here, there is a technical reason for it.
– Must have MS words and excel programs.
|Pointer 35 – Personally I would prefer a laptop than a personal computer as it is mobile and I can use it anywhere I want!|
- Communication methods: Usually I will skype to communicate with my candidates online as it is FREE and it keeps a record of what you and the candidates have said.
You can also download skype directly from www.skype.com
16) Hiring Workers @ Zero Cost
For a start, do not hire any staff and pay them a certain salary as it will drain your resources very quickly. Focusing on generating sales for the first few months is your top priority.
In the event you need to hire to delegate what you are doing I would suggest the following:
Hire full-time consultant purely based on commissions only. Commissions can vary from 30-70% of the deal done. I would suggest about 40% will be good enough, that means for every case the consultant closes, they will get 40% of the amount invoiced to the client.
In simple tabulation, if the person closes 4 cases per month, he can easily receive about $2,400 (4 x 600) per month (Basing on $1,500 invoice per case)
There is one challenge for this; many people who are salary based for a long period will not be very keen in this offer. However, there are ways you can overcome it.
- Keep a record of yours sales transaction for the last few months, show them your bank statements or the cheques the clients had paid you.
- Illustrate the potential of unlimited earnings in this career.
- You may want to cover some of their transport or lunch expenses if they were to close a certain number of cases within a month. This will motivate them to give it a shot.
- You can also mention they you are willing to advance them certain percentage of the commission earn for the first 1-2 months before the clients had paid to ensure that they have sufficient money to survive.
Chapter 21: Special Advanced Techniques
- Leads, leads and leads
What is the most critical factor in this recruitment business? A good resume/CV is the critical success factor
The theory is simple, without any resume, you are not able to make any recommendation to your clients!
How to generate leads for resumes/CVs?
- Tell everyone and anyone that you know you are in the recruitment business. Let them have your business card. Send them an email, talk to them, send them an SMS, use your MSN or facebook to tell EVERYONE & ANYONE about it! Tell them that if they are looking for jobs, contact YOU!
- Advertisements: Online advertisements can be posted in many hundreds and thousands of websites available, such as forums, yahoo groups, classified, etc. There are virtually many of them out there, it’s for you to choose!
Important: Unless you are very FREE and have nothing else to do, I will not recommend this step as usually your advertisements in the internet will generate low responses and will usually generate SPAM mails from many advertisers. As such the effort you put in will yield minimum results.
- Delegation of advertisements: As per point 2 above, it is not advisable to post advertisements yourself but instead you can delegate it to other people, how to do so? You can recruit people to help you based on the following conditions:
– You will pay them $0.20-$0.50 (You will decide the price) for every advertisement they help you to post in the internet. There are many people who are willing to do this job.
– You will pay them 5-20% (Percentages you decide) for every case closed based on the advertisements they helped you to place.
– You will pay them a certain $0.XX and a certain percentage of the case closed.
How much you want to pay them is up to your budget and comfort level. Choose the level that best suits your budget.
- Direct referral from friends is another great method to generate resume from your friends. It is because your friends know you personally and the person that is recommend to you will also trust you! It will save you plenty of rapport building time.
- Another interesting way you can generate leads are from facebook.com and www.Linkedin.com , it’s an international networking portal that allows you to make a lot of friends.
- Attending seminars, there are basically many FREE seminars that allow you to do your networking and exchange business cards. Flip to the papers and you will be spoilt for choice!
- Referrals from clients. You will be surprised that sometimes leads can be even generated from the clients itself. The clients may have friends, relatives who might be looking for a job! Sometimes even the clients themselves might be looking for a job too!
- Attending courses, if you have some free time and extra cash, go and learn a new language or some self-improvement course. You will be able to network with more interesting people who share the same interest who could very well be your next client or candidate.
- Parties! Yes, Birthday parties, reunion parties, whichever parties your friends ask to you attend, go for it! Bring a couple of boxes of your business cards, you may need them!
- Attend tradeshows, exhibition or road shows. You will be able to network with many high profile people who can be your clients or even candidates in futures!
- Acting like a customer- When you can walk in to an exhibition hall or showroom, act like you are interested to buy something they are selling. Walk around, see which are the more promising or outstanding sales person or manager, approach them with some questions about the product, you can easily get their business card!
- Freelancing Men & Women
There are basically many people who are willing to do things part-time to earn an extra incomes for their family. As such, it can be leverage to you when you utilise their skills at the right time and at the right price without paying full-time salaried workers’ pay!
Here are some examples
- Data entry – You can hire people to assist you to do data entries based on project basis.
- Consultants -you can even hire people to help you on your daily chores by giving them a certain percentage of the sales. They can work at home or in your office.
- Website designers- If you are not familiar with FrontPage program, hire someone who will help you design your website or your candidate website based on per project basis.
- Advertisements poster – As mentioned above before, pay them to post advertisements and pay them basically on results or the number of ads done.
- Resume referrals – You can hire a part timer who has referred resumes to you, based on the number of resumes they refer to you or based on successful
|Pointer 38 – Creativity is ultimate key to success. Never stop what you have now, and always invent new ways and methods to do things more effectively and efficiently.|
You see, ultimately you will have tons of work to do and only 24 hours to do the work. Your time is so limited that you are unable to so EVERTHING yourself.
The word is DELEGATION – Know how to delegate and when to delegate.
- Advertisement techniques
Advertisement is an art and science. You must know how to place it. Doing it properly comes after with many trials and errors.
I have compiled these tips which will be useful for your internet advertisement campaign:
- Check the speed of connection to the websites – If it takes more than 3 seconds to load the main page, skip it to the next available website for advertisements, don’t waste your time on it.
- Check the traffic and check on other people’s ads. Sometimes there is a section to see whether how many people have seen the ads. If the numbers is too low for many of the ads the advertisers posted, you might want to skip this website. Also as we can conclude that there is not much traffic there!
- Websites that advertised aggressively is a good indication of the traffic. The more advertisements they have done, the more traffic it should have that is the more responds to your advertisements.
- When you post your advertisements, NEVER make your ads BORING, make it exciting that it attract interests in your ads.
Example of Boring Ads:
Title : Seeking Customer Service who lives in…..
Title : If you love to talk, love to meet people…..Click here
- Trial and error – Always try different titles and subtitle to see which is the “Keyword” that attracts good response.
- Creating different emails for different websites advertisement – to track which websites is generating better response. You can create different emails which allows you to track which website is generating more responses.
Cv1@abc.com – Advertisement in website A
Cv2@abc.com – Advertisement in website B
Cv3@abc.com – Advertisement in website C
|Pointer 39 – At some point of your business, you will need people to help you, you will not be able to do all by yourself. Doing everything yourself will not make you rich, it will only make you very BUSY!
You don’t need to be BUSY to be RICH!
- Many advertisers in that website = potentially many response? Not really, there can be a lot of advertisers in a particular website and it seems that many people are advertising so they must be generating many responds? Isn’t it? Not really! Sometimes the website itself have an auto-repeat ads function that automatically repeats an ad after some time and creates an illusion that there are many advertisers, especially those paid advertisements in the websites. Hence, do not be misled by the surface! It may look good in front, but it could very be an empty shell behind!
- Millions of HITS = Millions of Visitors? BULL Xhit!
There are many websites which claims to have millions of hits and claims to have millions of visitors, don’t fall for it, we can have millions of hits but there can be chances that there are only 100 visitors!
|Pointer 40 – Initial tracking of which website is generating better response is important, once you have done it, you do not have to do it anymore and you will know which website is the best for you to post advertisements.|
- Following up on the clients
Remember one thing – Your clients are your paymaster! Always follow up with them no matter what happens.
Scenarios as follows:
– For any successful case closed, call them and thank them and check with them why they want to hire the candidate, understand them further.
– For cases that are not successful, check with them the reasons why the candidates are not being selected, you might gain plenty of insight of the client and the candidates!
– Even if your current or potential clients are not actively recruiting, always give them a courtesy call, ask them how are they, etc. Remember, they are human too!
– Pay the client a visit every 3-6 months and call them once every 1-2 months when possible to build bonds and rapports. Remember only the top 3 clients only!
– Do not talk to the direct personnel, you can also follow up with the subordinates too, example, if you are directly liaising with the HR manager, talk to the assistant too! If you are dealing directly with the boss, talk to their PA or assistant too! Build rapports, build bonds!
|Pointer 41 – Build strong bonds and rapports with your top 3 clients only.|
- The bargains hunters
The bargain hunters are clients who will bargain with you on your prices and terms to the lowest and eventually you will not close any deal with them.
Who are the bargains Hunters?
Assistants of HR Managers, usually only entry level such as HR Executives or HR Assistants, sometimes even Admin officers.
What they do is that they will compare your price with other agencies and ask you to give a better price that other agencies are already offering.
The truth is that they are only scouting around and could be saying the same thing to other agencies too!
What will they bargain for?
- Your price
- Your credit term
- Your guarantee period for a replacement in the event your candidate leaves the company.
How to deal with such Bargains Hunters?
- Tell them that your price and terms are fixed and unable to revise until the client is a regular client. If they refuse, move on to the next available client.
- Completely ignore their request if their proposal is too low, it shows no respects to you and your organisation.
- You can counter their proposal and set it to a level where you are comfortable. I do not recommend this step as it will give an impression that you can be negotiated. Once done, there is a high chance they will negotiate with you again in a very short term (Unless you are desperately trying to secure this client, do not be obliged to their request)
|Pointer 42 – As a rule of thumb, I only negotiate prices with ONLY existing clients who have established themselves as TOP CLIENTS.|
|Pointer 43 – Mail Bomber allows me to mail to thousands of clients in seconds without me doing it myself. It saves me plenty of time in the marketing process.|
- Going the Super Extra Miles
It really pays to go the Super Extra Miles and when I mentioned about super extra miles. That means that you give the extra services to your clients or your candidate without expecting any return in monetary.
Examples of Super Extra Miles
- Fetching candidates to the client’s place for interviews.
- Fetching candidates from custom, airport to the interview location.
- Giving treats to candidates or clients for lunches or dinners.
- Attending clients’ open houses, sales presentations, and events.
- Attending candidates’ parties, drinking sessions, birthday parties, BBQ, etc.
- Helping clients or candidates to attend to things that are totally out of the recruitment area.
- Give consultation to clients or candidates that will be beneficial to them without any monetary rewards.
- Assisting candidates to fine-tune their resume without charging them anything.
- Send birthday cards or cakes to candidates during their birthdays.
- Auto pilot
Auto Pilot is going to be a strong word and a dangerous word too, what do I mean by autopilot?
Definition: Auto Pilot happens when you delegate ALL your work to someone or some group of people where you do not even need to attend countless of meetings every day.
|Pointer 44 – Hiring good Caretakers/Managers will mean a difference between you being successful or not, hence, choose them carefully.|
How to Auto Pilot Your Business.
1st – You will need a Caretaker (Manager),select someone who has good leadership, speaks well and can lead a team.
2nd – You must be willing to delegate 100% to the Caretaker.
3rd – Spend 1-2 hours of your time every week on your business and enjoy the FREE time you have!
When and how to find a Caretaker?
Only find a caretaker or manager when your business is generating at least $20,000 every month.
You will need to have at least 2-3 existing Consultants that are already familiar with your style of working before hiring a Caretaker.
You can advertise in the internet and other methods of generating leads mentioned above to source for suitable candidate for the caretaker.
Never pay more than $1500 as a basic salary per month, (Amount will vary upon which country and state you are located). Offer him the caretaker profit-sharing or commission remuneration structure where the caretaker takes home pay is based on the total output of the caretaker.
You can offer him the package above to him for the first 3 months, if the caretaker is proven trustworthy and competent, you can revise his salary and commission accordingly to your own preference. However, never pay a caretaker too high a salary, anything that is more that 10% of your total sales per month is not encouraged.
Trails of a good caretaker/Manager
- Good communication skills
- Leadership qualities
- Share the same vision as you.
- Education is secondary; having a good character is more important.
- Should not be too egoistic
- Your FEEL, if you feel that person is not good enough, go with the feeling…Usually this gut feeling will be right!
After you have selected the caretaker, this is what you must do:
- In the Contract/Appointment letter with the Caretaker, you must indicate that he/she will not supposed to engage in the same business or trade within a specific number of years. For me it is 5 years. This is to protect yourself from any caretaker duplicating your efforts and taking away your clients.
- Spell out very clearly with the Caretaker what are your expectations are and the number of cases you will require the managers and the team to perform per month.
- Delegate 20-30% of the work you are doing to the caretaker and gradually delegating all your work to the caretaker in the next couple of months eventually.
- Conduct group meetings with the Caretaker and the Consultants every month to understand what they are doing, tackle problems and build bonds with them. Do not spend more than 1 hour meeting with them.
What you must do after you have delegated 100% of your work to the caretaker?
Every week, you should contact the Caretaker by phone and check if he/she has any difficult issues that cannot be handled. It’s always good to discover the small problem earlier rather than let it snowball to a bigger problem eventually.
You ought to keep in contact with your existing Consultants to make sure that they know you still care about them. Mode of contact, by email, phone, skype.
You should visit the office (If you have one) once in a while to do some spot check to ensure everything is in order.
Maintain regular contact with your regular clients and candidates by email or phones.
Chapter 23: Choosing the Starting Point.
Since you have some ideas on how to start a recruitment company and how the trade actually works, it’s time to make some important decisions.
Would you want to work for an existing agency or do you want to form a business or company and do it yourself? You will need to weigh your priority.
|Pointer 36 – Never hire a full time paid worker unless you have $20,000 in your bank account!|
Things to consider before choosing your path:
- Your financial status, do you have extra $1,000-$2,000 you can put aside for the setting up of the business or company?
- Can you afford not to have any income for the next 2-3 months?
- Are you willing to work all the way to overcome any obstacles to achieve your goals?
If all of your answer is “YES” for all questions above, then you are ready to start your own business, if one or more of your answers have a NO, then it will be good to start off working for someone who already has a company. After you have work for 3-6 months and once all your answers are YES to the 3 questions, then you are ready to start your own business.
|Pointer 37 – Decide what you want and take action! No Massive Actions = No Results!|
Chapter 24: Turning Bad Economy into Your Unfair Advantage
In good times where the economy is booming, the number of cases you can close will generally be more compared to a normal economy. However it’s not important to highlight what you should do during good economy but rather what you can and should do during BAD ECONOMY!
What happen during BAD ECONOMY?
- Companies will cut cost in many areas.
- Workers get retrenched, this will lead to more people searching for jobs.
- Salary of workers may be reduced, potential bonus, commissions or incentives may also be reduced or even eliminated!
- Companies stop recruiting until the economy reverses, directly causing recruitment companies to face tougher competition. Remember the TUMOURS? Under this situation, the TUMOURS get bigger! More recruitment companies will go bust!
- Price of real estate will go down.
- More people without jobs, unemployment rate will go up!
- Possibly more social problems like crime rates going up, unrest, etc.
- More people willing to work part time or contract work.
- Many companies will close down
|Pointer 45 – View things from the clients view point and you can discover many methods to generate new business even in extremely bad economy.|
How to take advantage of Bad Economy and turn the tables around:
- Real estate – It will be a good time to rent office unit or even buy an office unit if the price is a good bargain.(Provided you have plenty of reserves in your bank). In such cases, you can even push the rental or selling price to a level you might not have even imagined!
Since there will be many companies that will close down, there will be situations where the potential office will be filled with suitable tables, chairs and other fixtures. You can rent the whole unit at only the rental cost and save on hundreds of thousands of dollars in renovation and buying of fixtures!
|Pointer 46 – Keep track of the price movements of the real estate for at least a minimum of 4-7 months before making a move into it. If the price is still dropping, do not enter until you feel that your business is picking up, this could be an indication that economy is reversing.|
I remember the time where economy was really bad. Nobody was renting the office units at Raffles Place, especially the bigger units, I spotted a 3,000 sq ft Grade A office unit and managed to get it for only $3.00 per sqft! 2 years later, the rental price skyrocketed to $15.00 per sqft!
There was another instance where I managed to secure a 4000 sqft office that was already fully renovated. Most of the tables and chairs were still around as the previous company had gone bust! I rented the office at $3.20 psf and save over $200,000 – $300,000 in renovation and fixture costs!
- As companies are cutting costs, there will be companies finding alternatives to get the jobs done. One way is to hire foreign workers, as such, there will be more cases where companies hire Malaysians who are usually more value for money.
As such, you can use the Candidate Marketing method to market Malaysians instead of locals too! The demand will be higher! You will be surprised by the kind of response it can generate! You see, ultimately you can choose what are the products to “market” if product A is not working, go for product B or even C.
- Since more candidates are willing to do contract or part time jobs, you can market candidates to clients and mentioned they are willing to do part time or contract based jobs. This will attract more clients to respond to your marketing.
- Getting FREE office? This method requires some negotiating skills and could be extremely beneficial to the landlord and yourself.
Under extreme bad economy, many offices will not be able to be leased out and as such, landlords are usually open for lower prices. However, let’s get a little creative over here, why not you propose to the landlord that you will give him 5-10% of the sales per month if he were to allow you to use the office at no cost!
Under such proposal, the landlord could get more “rental” and you do not pay any rental unless the business is generating sales, it’s a WIN-WIN situation for both parties.
- Getting Freelancers! Please remember the freelancer topic mentioned above, during bad economy, it will be very easy to hire people who fall into this group. This will allow your business to leverage the available workforce and skyrocket your business to the next level. Take the best leverage available.
Chapter 25: Putting it all together
Well, after so much detailed explanation on how things work, it’s time to put them all together and start the ball rolling: – Let’s get started!
- Choosing the starting point – To work for yourself or for others?
- If you choose to work for yourself and be your own boss, go to step 3, else if you decided to work for other companies, choose the company you would like to work for and go to step 7
- Choose a company or business name.
- Register a business or company.
- Register a website for the company.
- Create a working email under the company website.
- Generate leads and resumes.
- Choose the resumes you would like to market.
- Interview candidate and generate a webpage for them.
- Market the candidate by sending emails to clients informing them about the candidate.
- Filter companies and arrange interviews for the candidate with the clients
- Follow up with the candidates and clients.
- Close the deal.
- Go to step 7 again. Repeat the process until you have accomplished certain amount of targets per month.
- Once you are starting to reach a point where you are feeling overworked, you can start to recruit one Consultant to assist you, offer them based on commission basis only (Unless you have a lot of money in your bank account, you can pay basic salaries and commissions).
- Continue to recruit another one or two more Consultants to assist you.
- Start to source for potential Caretaker or perhaps promote from within the group of Consultants you have trained.
- Repeat step 15-17 until you have various groups with multiple Caretakers.
- You can expand further by hiring a General Manager and let him take care of the whole office.
- At this point of time, you will have achieved financial and personal freedom! Congratulations!
Chapter 26: Final Words
During the process where you are working hard to reach your goals for personal and financial freedom, you will definitely meet with many obstacles that can and will obstruct your progress towards your goals.
Some of the possible obstacles are:
Complains from family members.
Accumulation of outstanding bills.
Discouragement from friends or family members
Unhappy encounters with clients and candidates.
Problems with your staffs.
The list goes on and on… However, remember one thing, success usually comes after you have hang on long enough…. DO NOT LET GO AND GIVE UP TOO EASILY!
To overcome it, you must be able to solve the problems and focus on your objectives. Sometimes there is a need to sacrifice and forgo certain things and you will need to weigh your option. If it is worth to sacrifice it, you will need to do so.
The journey to your success is not an easy route as success comes after having paid a price.
Hereby I wish you success in your journey to Personal and Financial Freedom.
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