Who says there’s no money to be made in a split fee recruiting network? Whoever it was, I can tell you who it was NOT. It was not any of the Top Echelon Network recruiters listed below. That’s because those recruiters combined to earn $419,202 in placement fees during the first quarter of the year!

Do some quick math and you discover that the average fee was $41,920. Let’s run that through the TE cycle, shall we?

A first quarter cash bonanza!

Okay, Top Echelon takes its 6% brokerage fee off the top, 3% from each recruiter. That’s $2,515.

Now there’s $39,405 left for the two recruiters to split. Do some more quick math, and that leaves each recruiter with $19,702.50. For a split placement they made with another recruiter.

How many of your non-split fees this year have been less than $19,702.50? At the very least, that is a highly competitive fee. Anytime you can score almost $20,000 from a single placement, it’s a good day.

No, there’s money to be made in a split fee recruiting network. Are you going to earn $20K from all of your Network split placements? Of course not. Don’t be silly.

But since you pay $1,560 in monthly dues, what you will receive is a hefty return on your recruiting network investment. And that’s only is you make one placement per year.

Surely, wouldn’t you like to make more than one placement in Top Echelon’s recruiter network? The recruiters below certainly would.

Congratulations to everybody who made placements in Top Echelon Network during the first quarter! May the second quarter bring many more!

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Largest Split Fees of the Quarter
First Place:

Debbie Winkelbauer of Surf Search and Trey Cameron of the Cameron Craig Group

The position for this split placement was a Director of Utilization Management. Winkelbauer was the job order recruiter, and Cameron was the candidate recruiter.

The action that stimulated this split placement was listed as, “Regular communication with a Top Echelon Network member.”

The fee for this split placement was $67,500.

— — —

Second Place:

Mary Anne Buckley of Interstate Recruiters Corp (job order recruiter)
Justin Bidwell of Bidwell & Associates, LLC (candidate recruiter)
Position Title: Director of Quality Compliance
Fee percentage: 25%
Split Fee: $52,500

Third Place:

Bob Long of Executive Personnel Services (job order recruiter)
John Moskonas of Executive Personnel Services (candidate recruiter)
Position Title: Director of Financial and Regulatory Reporting
Fee percentage: 25%
Split Fee: $50,000

Fourth Place:

Carolyn Barcus of Barcus Associates (job order recruiter)
Mary Morris of Big Haystack (candidate recruiter)
Position Title: Business Development – Sales
Fee percentage: Flat
Split Fee: $40,012

Fifth Place:

Pamela Ratz DeVille, CPC (job order recruiter)
Catherine Sousa (candidate recruiter)
Position Title: VP of Contracting & Network
Fee percentage: Flat
Split Fee: $38,665

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Sixth Place:

Pat McCombs, CPC of KB Search Team, LLC (job order recruiter)
Ann Boland of The Boland Group (candidate recruiter)
Position Title: Vice President of Sales – Europe
Fee percentage: 30%
Split Fee: $38,025

Seventh Place:

Adrienne Colvert of Cambridge Consulting (job order recruiter)
Ken Nunley of 7 Solutions USA (candidate recruiter)
Position Title: Procurement Manager
Fee percentage: 25%
Split Fee: $33,750

Eighth Place:

Tim Piccini of Phillips Recruiting Services (job order recruiter)
Mark Diamond of Diamond Executive Search (candidate recruiter)
Position Title: Plant Manager
Fee percentage: 25%
Split Fee: $35,000

Ninth Place:

Melissa Truax of Premier Health Careers, Inc./Premier Paths (job order recruiter)
Barry Showe of Show and Associates, LLC (candidate recruiter)
Position Title: Director of Revenue Cycle – Physician Credentialing/Healthcare
Fee percentage: 25%
Split Fee: $32,500

Tenth Place:

Lois Rupkey of Byrnes & Rupkey, Inc. (job order recruiter)
Mark Diamond of Diamond Executive Search (candidate recruiter)
Position Title: General Manager
Fee percentage: 25%
Split Fee: $31,250

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Top Echelon determines the monthly and quarterly winners of its Network recruiting awards in four distinct categories, which are listed below:

1.) Recruiter of the Month
2.) Largest Split Fee of the Month
3.) Recruiter of the Quarter
4.) Largest Split Fee of the Quarter

The winners of these awards are only announced in The Pinnacle Newsletter Blog, usually (but not always) in the issue following the conclusion of each month and/or quarter.

Remember that blog post we published a few days ago? You know, the one that asked, “Who says there’s no money to be made in a split fee recruiting network?” Here’s another question: “Who says there are no high-quality network candidates in a split fee recruiting network?”

Well, there are both high-quality network candidates AND plenty of money to be made. And we have yet another case study to prove it!

This case study involves one of the most successful recruiters in the history of the Network: Pat McCombs, CPC of KB Search Team, LLC. Pat has made a handful of split placements with Catherine Bateman-Stewart of Woods & Paolino Recruiting Solutions. As you can see from Pat’s comments below, their latest placement was a doozy.

The bottom line: even though Pat’s client hired another candidate for the position, they liked Catherine’s candidate so much that they created a position for him!

Share quality Network candidates!

When a client creates a position so they can hire a candidate, it tells you how much they like the candidate. Consequently, it also tells you that the candidate was of very high quality. Top Echelon recruiters share quality Network candidates with each other. They don’t hoard their best candidates. They share them, and that’s how they make money.

Here are a few more interesting aspects about this case study:

• This placement was Pat’s 103rd as a Network member.
• The fee associated with this placement was $26,072. Not bad for a position that didn’t even exist prior to presenting the candidate.
• That Vice President of Sales – Europe position that Pat mentions below? She filled that position with a candidate provided by another Network recruiter, Ann Boland of The Boland Group. The fee associated with that placement was $38,025. It’s one of the 10 largest fees in the Network for the first quarter of 2017.

When you submit and share high-quality candidates to Top Echelon’s recruiting network, you make placements and you make money. This case study is yet more proof of that!

— — —

Pat McCombs, CPC

Catherine Bateman-Stewart

“Once again, Catherine provided excellent candidates. The original search on which she worked was a VP of Sales – Europe for our same client. Another candidate was selected for that position, but our client liked Catherine’s candidate so much, they created a new role for him. He was delighted! Such a nice win/win!”

Submitted by Pat McCombs, CPC of KB Search Team, LLC regarding her Network split placement with Catherine Bateman-Stewart of Woods & Paolino Recruiting Solutions

Position Title—DIRECTOR OF BUSINESS DEVELOPMENT – EUROPE

Fee Percentage—25%

(Editor’s note: This is the fifth Network split placement that McCombs and Bateman-Stewart have made together in Top Echelon.)

As most of you have already guessed, it was Trey Cameron of the Cameron Craig Group who recently made his 600th placement in Top Echelon’s recruiter network. Trey has proven himself to be a non-stop placement machine in the Network during the past several years.

Incredibly, the rate at which Trey is making TE split placements appears to be accelerating with each passing quarter. As of the writing of this blog post, his cash-in total for the past 12 months is $1.3 million. In addition, Trey continues to set records in the categories of placements made in a:

• Single month
• Single quarter
• Calendar year

Money made: $4.6 million!

But, wait . . . there’s more! Trey also has the highest cash-in total in Top Echelon Network history. His total currently stands at over $4.6 million. At this point, it’s a foregone conclusion that Trey will eventually set records in TE that will never be broken.

But what other recruiters like about Trey are the candidates that he supplies through the Cameron Craig website. In fact, two of those recruiters are below.

After all, Trey may have earned $4.6 million in the Network . . . but that means other TE recruiters have made that much, as well. If you asked them, I’d guess that they’re pretty much happy about it.

Congratulations (once again) to Trey Cameron of the Cameron Craig Group! And congratulations to his trading partners, too!

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Trey Cameron

Al Daum

“Thanks, Trey! I knew this candidate, but I did not know he was looking until he applied to my job on your website!”

Submitted by Alan Daum of Alan N. Daum & Associates, Inc. regarding his Network split placement with Trey Cameron of the Cameron Craig Group

Position Title—PROCESS AUTOMATION SYSTEMS LEAD

Fee Percentage—20%

(Editor’s note: This is the third Network split placement that Daum and Cameron have made together in Top Echelon.)

— — —

Lynda Mammel

“You worked your magic again and found the perfect candidate again. Thanks!”

Submitted by Lynda Mammel of The PRA Group, Inc. regarding her Network split placement with Trey Cameron of the Cameron Craig Group

Position Title—APPLICATION CALIBRATION ENGINEER

Fee Percentage—22.5%

(Editor’s note: This is the third Network split placement that Mammel and Cameron have made together in Top Echelon.)

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If YOU are looking to make more placements with your Top Echelon recruiting network membership, then contact Director of Network Operations Drea Codispoti, CPC/CERS. You can do so at 330.455.1433, x156 or at drea@topechelon.com.

One of the most difficult aspects of contract staffing from a recruiter’s perspective is payroll funding. The nature of contract staffing requires you, as the employer, to pay the contractors BEFORE you are paid by the client.

While you pay your contractors weekly or at least every other week, it could be 30 to 90 days before you receive payment from the clients. You could have several thousand dollars outstanding at any one time for just one contractor, let alone several contractors.

But don’t let this keep you away from adding what could be a very lucrative line of business. There are a number of ways recruiters can handle payroll funding. You just need to select the one that works the best for your firm.

Below are four payroll funding options for contract staffing recruiters:

#1 — Self-funding

This is the preferred method for many recruiters. That’s because there are no fees and no debt. But unless you can draw from your existing direct hire business, a large savings account, or another source of income, you may not be able to float the payroll until your contract staffing services become profitable. Fortunately, there are other options.

#2 — Line of credit

You could simply go to your bank and ask for a line of credit. This can be a viable option for large, established firms. However, smaller start-ups may find it difficult to get funds from banks. Another caveat is that obtaining a line of credit that is either too large or too small could result in unnecessary fees. Finally, banks usually like to lend against hard assets, such as property, vehicles, etc. So you could risk your home or business if a client doesn’t pay.

#3 — Payroll funding and factoring companies

Funding and factoring companies, on the other hand, tend to lend against accounts receivables rather than hard assets. They will typically purchase your invoices and then take responsibility for collecting on them. They take a percentage of the invoice and may also hold a percentage as a deposit until the client pays, according to the Staffing Entrepreneur website. The approval process usually moves more quickly than with bank funding.

Keep in mind that vendors will often consider your clients’ credit rather than yours. While this may seem to be an advantage to smaller firms, these vendors tend to be very picky. You may find yourself turning down business you would like to take. These companies vary in how they operate and what services they offer. So be sure to select a vendor that meets your firm’s needs.

#4 — Contract staffing back-office

While the previous options address the payroll funding issue, they don’t relieve the other challenges associated with offering contract staffing solutions. Unless a funder also processes payroll, you will retain all of the administrative payroll duties. These include timesheet collection, calculating pay and taxes, direct deposit, and tax withholdings and filings. As a result, using recruitment back office solutions are an attractive option.

A recruitment back-office provider will take on these other payroll tasks in addition to the funding. Plus, they become the legal employer of your contractors. That means they handle all of the other employment responsibilities, as well. These include contract negotiations, Workers’ Compensation, unemployment, benefits administration, background checks, invoicing and collections, and more.

Get started on the road to making contract placements. Download our Quick-Start Guide to Contract Staffing!

What do recruiters like to do? They like to make placements. So what should recruiters ALSO like? They should also like other recruiters who like to make placements.

Makes sense, right? I’m glad you agree because we have more new Network recruiting firms in this issue of The Pinnacle Newsletter Blog!

Welcome . . . to Top Echelon Network

The top five industries in Top Echelon Network last year in terms of placements were Industry & Manufacturing, Engineering, Information Technology, Sales & Marketing, and Healthcare. I bring this up because this new group of members is right in the Network’s “wheelhouse.”

The firms listed below specialize in the following areas, among others:

• Sales
• Healthcare
• Information Technology
• Manufacturing
• Engineering

So YOU like to make placements. These recruiters like to make placements. And they work in the same industries and niches that represent the majority of placements that are made through the Network. It doesn’t get much better than that. These firms are primed and ready to make split placements in our elite recruiter network!

All you have to do is reach out to these recruiting firm owners. Welcome them and ask about the biggest need on their recruiting desk.

You never know. You could be making splits with these new firms in no time!

What’s not to like about that?

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BAY COLONY SEARCH
Date joined: March 8
Location: Boxford, Massachusetts
Industries:  General
Agency members: Brad Trull

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MEEHAN GROUP
Date joined: March 9
Location: Evansville, Indiana
Industries: General
Agency members: Patrick Meehan

— — —

KURZ SOLUTIONS
Date joined: March 16
Location: Albuquerque, New Mexico
Industries: We are recruitment process outsourcing firm working predominantly in healthcare, but in other disciplines, as well.
Agency members: Rob Kurz

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JTR RECRUITMENT/TECHCONNECT
Date joined: March 16
Location: Powell, Ohio
Industries: Experience in recruiting and placing top talent with the following skills: Java, .NET, Python, Ruby, Rails, Full Stack Devs, Software/Web/Apps Developers, Big Data, Data Warehousing, Hadoop, BI, Analytics, Cloud, Mobile Apps (Objective C, iOS, Android), IT Security, IAM, IDM, Salesforce CRM, ERP, Oracle, SAP, ITSM, ITIL/ServiceNow, Cisco, IT Audit, QA. I also recruit Accounting and Audit and Tax professionals, as well as Sales executives (selectively).
Agency members: Jamie Rule

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WEBSTER & WEBSTER ASSOCIATES
Date joined: March 16
Location: Beltsville, Maryland
Industries: DOMAINS: Real Time, Embedded Systems, Internet of Things, Industrial Internet of Things, High-Performance Computing, Supercomputing, Cloud Computing Mobile, Cyber Security, Telematics, Automotive, Military, Avionics, Transportation, Medical Device, Industrial, Consumer Electronics, Security, Finance, OEM, and ODM. SENIORITY: Executive, Manager, Director, Senior Associate, and Associate. FUNCTIONS: Engineering; Sales & Marketing; Professional Services; and Executive, Managerial, Supervisory, Technical, and Information Technology positions in a variety of industries
Agency members: Marcus Webster and Diavia Webster

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MARVEL CONSULTANTS, INC.
Date joined: March 17
Location: Woodmere, Ohio
Industries: Electrical/Electronics, Engineering, Fluid Power, Food Service/Equipment Sales, Healthcare, Industrial Sales/Marketing, Legal, Manufacturing/Quality, Marketing, Nursing, Rubber/Plastics, and Sales
Agency members: John Sowers, Bill Weiss, Amy Bluso, Eric Bergsman, Brian Cayne, Marc Charney, David Goldie, Sandra Hershkowitz, Monte Kushkin, Annette Malkin, Mark Salem, Dave Sevel, Michael Ward, Laura Oriani, Philip Major, Peter Dobrowski, Sharon Grobelny, Stacy Warner, Robin Graves, Ron Eliason, Kevin Ward, Suzanne Woods, Ron McCoy, and Alex Harris

— — —

AMBS CHEMICAL SEARCH
Date joined: March 20
Location: New Braunfels, Texas
Industries: Engineers in Chemicals, Refining, Midstream, PharmChem, and BioChem; SPECIALTIES: Process CHEs from Chemicals/Refining, especially Olefins, Polymers, and Refining, as well as Reliability and Maintenance Engineers in the Chemical/Refining industry, especially Rotating Equipment Engineers, Fixed Equipment Engineers, and Corporate Reliability Engineers
Agency members: Robert Ambs, June Ambs, and Chelse Conlan

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It doesn’t matter if you’re a newer Network recruiter or an established member. If you want help making more split placements, then I welcome you to contact me! You can do so by calling 330.455.1433, x156 or by sending an email to drea@topechelon.com.