If you’re a professional recruiter, you may wonder why you should bother joining a split-fee network.
Whether you’re an independent, full-desk recruiter or work for a recruitment agency, you want to keep the money that you make. Why let anyone else take a cut?
There are definitely drawbacks to the traditional world of split-fee recruiting arrangements. Let’s talk about the reasons why you should NOT join a split fee network… and the one reason why you should.
3 Reasons You Shouldn’t Use A Split-Fee Network:
Reason #1: You have to split your fee!
Okay, this one’s self explanatory: don’t join a split-fee network if you want to keep your whole fee every time.
If you’re a full-desk recruiter, you work with both candidates and clients, and help bring them together. However, most job recruiters tend to be better at one of those things than the other.
So that’s why they turn to split-fee arrangements. You provide the position, I provide the candidate, we each take a percentage.
For many recruiters, that’s an acceptable situation. After all, it’s just as easy to see the situation as you taking a part of someone else’s deal as it is to see it the other way around. But if you don’t like the idea of sharing the bill with another recruiter, a split-fee network is not the best option for you.
Reason #2: You don’t trust your fellow recruiters.
In the past, it’s been pretty easy to get burned by other recruiters and get stuck with some pretty awful deals. And nobody likes being taken advantage of… especially when the whole purpose of the deal was to work out a mutually beneficial arrangement.
While the opportunity exists to build long-lasting and trusting relationships with fellow recruiters that leads to increased profit for both parties, there definitely are bad people in the world who can take advantage of that goodwill.
If You Do Choose To Use A Split-Fee Network For Recruiting, be sure to have your contracts drawn up to protect your interests. At Cloakhire, you are free to use your own contracts, or we have pre-drawn contracts that you can use to make sure both parties in a split-fee arrangement come out ahead. They’re absolutely free.
Reason #3: The Network Platform Takes A Cut!
Okay, you have worked hard to set up a beneficial arrangement with another recruiter.
You’ve taken the time to find them on a networking platform.
You found the way that you could help each other out the most.
You negotiate a deal that benefits both of you, the client, and the candidate. Everybody’s happy.
Well, almost everyone. As you’re ready to sign on the dotted line, the platform that you already pay for comes in and wants to take 6-7% off the top.
Why? Because they can.
You’ve done the hard work, you should keep the money. A fee like that makes for a pretty compelling reason to avoid using split-fee networks entirely.
Of Course, At Cloakhire we do things a little differently. Unlike other split-placement networks, we don’t take any cut. You make the deals, you keep the money. It’s just how we roll.
So What’s The One Reason You Should Consider A Split-Fee Network?
Simple. You can make more placements.
Making more placements means making more money.
Let’s face it, you probably have clients right now that you’re struggling to find the right candidates for. You’ve interviewed plenty of candidates, and they could be great, but you don’t have quite the right position for them.
So why not start using those candidates that are not correct for your client? You can find another recruiter with a different set of opportunities and you could both walk away making some money.
No one will argue that taking 100% of the profits of any deal is better than taking half. But half of something is better than 100% of nothing.
In addition, working with other recruiters can help you become a better recruiter. Compare best practices and business models. Pursue collaborative interviewing. Help each other get better at what you do… and make more profit in the process.
Cloakhire: A Split-Fee Network, Simplified
If you’re avoiding using a split fee network, you may want to consider Cloakhire. We provide contracts to make sure that both parties come out ahead, and we never take a cut of your hard-earned deals. Mitigate the risks you take with ratings & verification from an impartial 3rd party.
Sign up today and get conversion tools, support, and applicant tracking system CRM you can use to start making better split-fee placements today!