Business Idea

Start A Recruiting Agency

About

Starting a recruiting agency requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell recruiting service, or selling recruiting service online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a recruiting agency ➜

Key stats

market size
$152B
revenue (monthly)
$270K
starting costs
$27.2K
gross margin
30%
avg product price
$700
time to build
10 months
growth
SEO
business model
Consulting
time investment
Full time

About

Starting a recruiting agency requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell recruiting service, or selling recruiting service online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a recruiting agency ➜

Key stats

market size
$152B
revenue (monthly)
$270K
starting costs
$27.2K
gross margin
30%
avg product price
$700

 

time to build
10 months
growth
SEO
business model
Consulting
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $500 $5,000
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Software Expenses $150 $3,044
Advertising & Marketing Costs $0 $2,300
Training & Education Expenses $0 $1,000
Other Expenses $0 $800
Total Startup Costs $6,517 $47,794

Successful Businesses

Business URL Rank
Employment Development Department edd.ca.gov #251
SEEK seek.com.au #1,314
Staffing Agencies & Recruiters roberthalf.com #9,639
Recruit.net recruit.net #29,212
Aerotek Recruiting and Staffing aerotek.com #37,925
Jobs, Staffing, & Workforce Solutions randstadusa.com #40,691
Creative Staffing Agency aquent.com #57,397
Etcareers Jobs in Ethiopia etcareers.com #70,041
Michael Page michaelpage.com #93,471
Permanent Staffing & Temp Agencies for Job Seekers adeccousa.com #94,211
Antal antal.com #110,461

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Rewarding work Starting a recruiting agency can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections You never know who you will meet as a recruiting agency. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Pick & choose the clients you work with Recruiting Agencyes have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Control of workload With starting a recruiting agency, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins The gross margins for your recruiting agency are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the recruiting agency, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a recruiting agency, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
High overhead expenses With starting a recruiting agency, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    The most tried and true way to grow a recruiting agency is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to recruiting agency.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜