Add Freelance Recruiter Agreement Template Mark with airSlate SignNow

Add Freelance Recruiter Agreement Template mark

what's going on guys hey it's Ben thanks for checking out the channel once again I truly appreciate all of you subscribers but those of you that have not subscribed yet please hit the sub button down below and if you like the content in this video a bit but at the end or all of my videos for that matter so anyways let's dive right into it today this is a question basically video question based video that came from the comments I believe yesterday somebody asks something along the lines of how do you know how much to charge a client and so I'll rephrase that a little bit and I'll say how do you structure your fees so I'm just gonna make this short and sweet and I think a lot of you are probably thinking the same thing starting a recruiting agency nobody really understands how this works because it's really private it's very back-end a lot of people don't want to disclose this type of thing they don't want to talk about it and you know generally just don't know what a recruiting agency is charging their clients for sure if you're a candidate you're definitely not knowing what what the client is actually paying for you to be on most likely so there's two sides to it there's contract labor and there's direct tires we know and so I do a lot of direct hire much more than contract labor but I'll talk about both so I work in the general labor space and so in the general labor space there's admins there's warehouse there's drivers there's cleaners there's production facility workers anything that's lower level skilled you know mediocre high turnover high demand you know for employment that sort of thing so that's general labor those positions generally command about a 10 to 15 percent max fee on gross annual earnings okay so the wave fees are structured in recruiting are you take what that employee is going to make over the entire year so if it's $18 an hour they're gonna make about $34,000 a year ten percent of that is about thirty four hundred dollars which means you will make thirty four hundred dollars when you place the candidate that makes $18 an hour so that's how a fee is structured generally I started my business and recruiting going in at ten because it's basically bare-bones nobody goes below 10% you pretty much undercut everybody in your entire city or your area or whomever and if you're willing to work and grind it out and hustle 10% is where it's at because you'll grab clients left and right and just be you'll be overwhelmed with clients basically if you want to get a little bit more bang for your buck you can bump your fee up to twelve thirteen fourteen up to 15% in general labor I would not go anywhere beyond 15% in general labor because it's just simply outrageous beyond 15% gets into the tech recruiting realm and that's 15 up to 25% and it's just a whole different ballgame so basically that's gonna be where you're gonna want to hit at now 10% is going to be written out in a contract you're gonna put that in the contract like I showed on the other video 10% fee you can even write an example if a candidate makes $40,000 annually the fee will be $4,000 and then you're going to put your collection terms when you want to get your money I put net 14 days two weeks in and then I put a guarantee period of 30 days meaning I guarantee that the pool employee will stay for 30 days or I will replace them never refund never refund so anyways beyond that there's the contract side so how do you structure a fee for a contract employee this one's a little bit harder um you really have to kind of look at your market and it's a very geographic based so I talked to somebody that was in Indiana once and they were doing staffing and they told me that I think the minimum wage was like $8 an hour and people were getting paid at warehouses something along the lines of 850 or nine bucks an hour or something like that and basically you couldn't make a markup on anything you did there you could not make a markup and really what you didn't want to do in contract staffing is make a markup so or what we call a bill rate so you're gonna basically pay the employee one fee like 15 dollars an hour and then you're going to build the company another fee let's say $30 an hour okay that would be a huge markup a pretty good markup that's kind of what you would want your aiming for basically the most money you can get out of the company in contract labor versus what you're actually paying the employees so that margin that spread is what you're actually taking home in your pocket after you paying taxes on the employee like they're you know Social Security Medicare FICA futa all those taxes that employees have to pay out their paychecks like when you you know work in corporate America you've got taxes that get take it out of your paycheck just like that you actually have to pay those so you have to account for that in your markup and this can get very convoluted but basically understand that anywhere between like a 48 percent to 55 percent markup is a pretty good decent markup you're probably gonna make some profit you'll cover all of your losses on the taxes and whatnot and you'll come home making you know a couple hundred bucks or or more on each each worker that you have working on a certain contract if they're contracted through you the other thing with that is you know do you want to charge a certain bill rate that pays you a ton of money but also puts a huge burden on the company well the company's not really wanting to do business with you a ton if you're billed rate is super high like if you come in and say hey you know I'm gonna pay the guy 15 bucks an hour but I'm billing you $45 an hour well first off they'll just tell you to eff off they're not gonna work with you but if you come in at a rate that's reasonable that most company is you can do research or most companies in your area are coming in at they're gonna do business with you and you'll be able to make a nice little spread margin and you know get a ton of group of guys that are working for you making you pretty much residual income all you have to do is payroll and stuff like that and so my next video I think is going to be about payroll systems and how they're utilized and how you can set it up so that you can pay contract labor and stuff like that because I myself do direct hire and contract labor so any that's it for today guys I'm gonna you know get back to work myself I hope you are grinding it out today I'll catch you on Tuesday take care peace