Recruitment is a core business service that has lots of potential for business owners to start. Normally a recruiting business can run from home or in a small office but collect big fees from paying customers, making the chance of significant profits high. So here are the steps that you need to know for how to start a recruiting business.

How to Start a Recruiting Business

Why Start a Recruiting Business?

There are numerous reasons why you will want to start a recruiting business. Here are some of the suggestions on why you should start a recruiting business.

1. Significant Profits

One of the major reasons why recruitment businesses are so popular is because of the potential reward that is on offer when it comes to business activities. Recruiters can expect to charge somewhere between 15-20% of the candidate’s first year's pay.

Though the most successful recruitment firms can charge up to 30%.

When the average salary in the US is $54,132 a year, which means the average consultant can charge approximately $10,000 for every placement. Good recruitment consultants can place between one and two candidates a week, so can be earning $520,000 to $1,000,000 a year.

2. Candidates are Always Needed

Even in recessions, candidates are always going to be needed as someone will always want to expand or seek replacements. Therefore, there is never going to be a time when a recruitment consultant will not have work.

The market might be competitive, and there might be tough competitors to beat to a position. However, a hard-working business owner can always make this work well.

How to Start a Recruiting Business

3. Businesses can be Run from Home

To save on costs, recruitment businesses can be run from a home office. Therefore, there are no costs for offices or additional energy. It also means that you can spend less time commuting and improve your work-life balance.

4. Recurring Customers

In addition, a successful recruitment consultant can get some brand loyalty. Therefore, when a firm gets a good candidate and they need more people, they will tend to work with the same recruitment firm again and again.

Therefore, you can earn a lot of money very quickly with a very short list of customers. There is also a potential of getting a lot of referrals. Sometimes a hiring manager in one department will use a different recruitment firm, but they might seek advice from others, who might then recommend you.

Therefore, marketing is going to be good.

Plus, if you work with temporary or contract workers, you might get some very loyal candidates who will only work on contracts that you work with.

How to Start a Recruiting Business

How to Start a Recruiting Business

The start of a recruiting business is much different from how you might start other businesses. There is going to be a lot of networking and going out to meet potential customers. So in the following steps, you will find out how to start a recruiting business.

Step 1 – Choose a Business Model

The first thing that you need to do is to choose the business model that you’re going to operate as. For example, you might want to run a recruitment business that deals specifically with IT contractors, or you might want to help temporary construction workers or perhaps permanent staff in the office.

Choosing the niche that you’re going to follow allows you to build a more specific model and allows you to market your brand.

Step 2 – Select a Business Name

Now you need to select a business name. This can be a very long process. And you might need to use a business name generator. You should also need to choose a name that is not taken by another business owner. So check on social media, in-state business searches, domain searches, and Google to ensure the business name is not in current use.

Step 3 – Create a Website

Now you need to register your name everywhere and create a website. Websites can be rather simple for a recruitment business. You need to make your business more contact, speaking and emailing customers/candidates to ensure that you have the best relationship with them.

How to Start a Recruiting Business

Step 4 – Get Sample Candidates

Now you need to get some sample candidates to showcase to your potential clients. You need to bring in candidates with excellent resumes, and experience. These candidates can be part of your marketing portfolio, allowing you to show off what you can offer them.

Step 5 – Network

Now you need to network with potential clients. Reach out to business networking groups and see if they have any space. You can also cold-call hiring managers and see if they will sit down with you for an informal meeting.

Always go to the meeting with some treats and gifts. These small offerings can improve the initial impression of you.

Step 6 – SEO and Email

Now you need to improve your SEO and your website’s general marketing. Email marketing is also going to be a key option when it comes to building client lists and attracting audiences. Blogging is a good way to help you rank higher on Google. Writing a blog post at least three times a week can help you attract new links to your website and more.

Step 7 – Call New Prospective Clients

There are several key steps you should be taking every day, and one of those is calling new prospective clients. You should call at least ten new prospective clients every day. That way, you’re talking to about fifty people a week, and you should get a new long-term contract at least once or twice a week.

How to Start a Recruiting Business

Final Word: How to Start a Recruiting Business

When it comes to learning how to start a recruiting business, there is nothing usual about the process. You’ve got to find candidates and clients, build a reputation and do a lot of introductions. Networking is going to be one of your key activities. And you should be proactive. There’s a lot of competition, but the rewards can be very high for your business.

Therefore, following the step above on how to start a recruiting business can help you to get the best success from your venture. But remember that it is important to get that name right, 80% of businesses won’t buy from a brand if they don’t have a good name.


The average fee for a recruitment firm is about 15-20% of the first year of the candidate’s pay. If they are on a temporary contract, it can be as much as 30% of their hourly rate.

Yes and no. If you offer contract workers, you are responsible for paying them their holiday pay. Therefore, you can lose some of the revenues to complete this work.
Getting regular clients. It is a tough, competitive industry, but it has its rewards and you can make a lot of money with the work.
Social media can help you attract candidates and improve your SEO. Therefore, you might want to consider working on an active campaign: especially on LinkedIn and Facebook.
The average recruitment consultant pay is $62,000 a year, but this is for the employee. A business owner can earn double this, especially if they have employees.