3 by Avalaxy | 0 comments on Hacker News.
We're looking to start a new IT recruitment company (targetting a specific niche). We made some assumptions about this business, but we would like to hear the thoughts of other people to check if these assumptions make sense. Of course I thought about asking recruiters what they think of it, but they probably don't want to give their secrets away and help a potential competitor. Some background info: we are based in the Netherlands and are looking to hire an experienced recruiter. There won't be a pool of candidates or customers from the beginning, we will start looking for those from scratch. We will try to match both freelancers looking for gigs, as well as employees looking for permanent jobs. Here are the assumptions: 1) We will be able to match our first candidate with a job within 4 months after starting. 2) We will be able to convert 2 succesful matches per month (with 1 recruiter). 3) A €3000 gross base salary per month + 10% bonus (of the total fee) over every match that the recruiter manages to convert is a fair salary (the base salary might be difficult for people from other countries to judge, but does the performance bonus structure make sense?). 4) A freelancer will probably stay at his job (and thus provide us revenue) for 6 months on average. 5) Asking for 3 months' worth of salary for a permanent employee match is a fair compensation. Are there any people with knowledge of the recruitment business who can shed some light on whether or not these assumptions are accurate?
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