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How Recruiters Can Effectively Negotiate Fees

by Beverly Aarons 14. January 2010 08:59

Fees are the lifeline of every recruiter’s business. But how do you negotiate fees with enough tact and poise to create a win-win outcome? Let’s take a look at some successful tactics:

  1. Qualify your client before the negotiations begin.  Is the client really looking to fill a position now or are they just a tire kicker?  You can find this out by asking them, “When do you need to fill that position?”  Does the client have the ability to pay for you service or is there firm experiencing tough times?  If they are struggling, watch out they may be looking for a discount.   
  2. If your client is looking to fill a job order immediately and they are able to buy, you need to find out what it is they are looking for.  What type of fees are they use to paying?  A good question to ask might be, “What fees do you usually pay recruiters who are top performers?”   What you don’t want to do is under bid or over bid for a job order.
  3. If the fee is lower than you expected or desired, you need to further assess the situation before your accept or reject the offer.  How much do you need this client’s business? Has it been a slow year for you?  If so, taking a lower fee may make sense even if it is for a lower fee; however, you may want to make it clear to the client that the fee is only “introductory.” You don’t want them to become accustomed to lower fees.
  4. If you want to turn down a client’s offer, do it with tact even if a few was outrageously low or a job order is so demanding it would be impossible to fill. Thank the client for the offer and leave the door open for future business.


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