568: How to Start a Recruiting Business and Earn $10-20k Per Hire

8 Jun 2023 · 54 min

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Episode Summary: How to Start a Recruiting Business and Earn $10-20k Per Hire

Podcast Overview Podcast Title: The Side Hustle Show Host: Nick Loper Episode Title: 568: How to Start a Recruiting Business and Earn $10-20k Per Hire Guest: Jon Chintanaroad Description: Jon Chintanaroad, a seasoned recruiting professional, shares insights on how to launch a recruiting business that can generate substantial income. He discusses strategies for attracting clients and candidates, along with effective practices to ensure success in the recruiting field.

Key Themes and Insights

Introduction to Recruiting as a Side Hustle

  • Potential Earnings: Recruiters can earn between $10,000 to $20,000 per hire, making recruiting a lucrative side hustle.
  • Matchmaker Role: The essence of recruiting is connecting job seekers with companies, akin to playing matchmaker.

Jon's Journey in Recruiting

  • Accidental Start: Jon fell into recruiting by seeking a job at a staffing agency. His knack for connecting people led him to a career in recruiting.
  • Transition to Entrepreneurship: After facing layoffs, Jon was encouraged by clients to start his own recruiting business, leading him to establish Recruiting Accelerator.

Recruiting Best Practices

  • Client Acquisition First: Jon emphasizes starting with securing clients before focusing on finding candidates.
  • Targeting Small to Medium Businesses (SMBs): The ideal clients are typically SMBs that have hiring needs but lack the resources to manage recruitment internally.
  • Industry Knowledge: Recruiters should begin in industries where they possess prior knowledge to effectively communicate with hiring managers and candidates.

Effective Outreach Strategies

  • Stealth Mode: Jon advises recruiters to keep their side hustle discreet, especially if they are employed in a recruiting role. Avoiding visible branding can protect against potential conflicts of interest.
  • Automation Tools: Leveraging automation for client outreach can save time and increase efficiency. Jon developed a 2.0 version of his training program focused on automation.
  • Personalization: Despite automation, adding a personal touch to outreach messages, such as using video introductions, can significantly enhance engagement.

Candidate Engagement Techniques

  • Engaging Passive Candidates: Finding and contacting candidates who are not actively seeking jobs can be challenging. Utilizing creative messaging and relationship-building techniques are crucial.
  • Qualifying Candidates: Understanding a candidate's career pain points is essential. Jon uses softening statements to engage candidates and assess their interest in new opportunities.

Navigating the Recruitment Process

  • Metrics for Success: For every position, it is advised to submit at least three candidates, which requires talking to about 50 people. Ultimately, this means reaching out to around 100 candidates to find the right fit.
  • Counteroffer Strategy: Preparing candidates for potential counteroffers is crucial. Jon provides coaching on how to handle them effectively to avoid losing deals.

Closing Thoughts from Jon

  • Continuous Improvement: Jon emphasizes the importance of ongoing learning and adapting to new tools and strategies to stay competitive in the recruiting industry.
  • Networking and Investment: Investing in mentorship and networking opportunities can provide significant returns and accelerate business growth.

Conclusion Jon Chintanaroad's insights into starting a recruiting business offer valuable guidance for aspiring recruiters. By focusing on client acquisition, leveraging technology, and understanding the nuances of candidate engagement, individuals can successfully launch and grow their recruiting side hustles.

For more information and resources, visit [Recruiting Accelerator](https://recruitingaccelerator.com) or listen to the full episode on The Side Hustle Show.

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Key Takeaways

  • Start with Clients: Prioritize acquiring clients before seeking candidates.
  • Automation is Key: Utilize automation tools for outreach to save time and enhance efficiency.
  • Engage Creatively: Use personalized messages and creative engagement techniques to connect with candidates effectively.
  • Prepare for Counteroffers: Equip candidates with strategies to handle counteroffers and navigate the job transition smoothly.

Resources

  • [Recruiting Accelerator](https://recruitingaccelerator.com)
  • [Side Hustle Nation](https://sidehustlenation.com)

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Transcript

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0:02Earn 10 to 20 grand per hire and how you can get started part time. What's up? What's up? Nick Loper here. Welcome to the Side Hustle Show. It's the business podcast. You can actually apply. Today, I've got a fascinating side hustle for you. It's recruiting. I knew there was money in recruiting, but I had no idea there was this much. John Chintana Road is here. He knows the recruiting business inside and out, having worked for several staffing agencies before starting and selling his own recruiting business. Today, he runs recruitingaccelerator.com, where he's helped hundreds of people start and expand their own profitable recruiting businesses.

0:38John, welcome to the Side Hustle Show. Thank you for having me, Nick. Excited to be here. Likewise, stick around in this one to learn what John calls stealth mode, how you get started without your nine to five noticing, and how to set yourself up for success, essentially playing matchmaker between job candidates and companies who are trying to find them, companies that need their help. If you're new to the show, make sure to grab your personalized playlist at hustle.show. There are over 550 episodes to choose from, which can be intimidating. But if you answer a few short multiple choice questions, I'll build you a custom curated playlist of the ones I think are going to be most relevant and impactful for you.

1:17Again, that's at hustle.show. But John, my understanding is your solo ventures as a solo recruiter kind of started a little bit by accident. Can you explain? Yeah, well, actually my whole career started by accident. Like most recruiters, I fell into it, right? You don't go to school and major in recruiting. You kind of just find it after you graduate. So I actually walked into a staffing company looking for a job. And then they said, hey, why don't you just come work here as a recruiter? And that never occurred to me, but I thought to myself, well, I'm kind of a people person. And I'm always making connections for my friends.

1:51And a lot of those connections, they would end up getting jobs. So I was like, well, I'm already kind of doing it for free. you might as well kind of get paid to do that. So then I kind of started staffing there and then eventually worked my way up to more boutique recruiting companies where I would, you know, make a percentage of the salary. Yeah. And a lot of people don't realize that recruiters, they typically charge 20 % of someone's salary. So if you're placing a six-figure salary person and your fee is 20%, that's over$20 ,000 per hire, right? That goes to the agency. Unfortunately, as an employee, yeah, you get a percentage of that.

2:23Right. It's a lot. And if you think about it, it's because we don't get the easy jobs. We get the jobs been open for six months. They've like tapped their network. They're scraping the bottom of the barrel. Yeah, yeah. And like, okay, we still can't find the right person. Let's throw money at this and hire a professional headhunter recruiter, right? So then we come in to kind of save the day. When I actually got into my own recruiting business was because one day I walked into the office on the Monday and said, hey, we're laying off you and your entire tech division, right? That was my manager to me.

2:55I'm like, wow, okay. So I went home, actually stopped by the bar, had a couple of drinks first to lick my wounds, went home. And then I'm like, well, I'll call my top couple of clients, break the bad news and say, hey, sorry, I won't be able to send you any more engineering candidates. My company laid off the whole tech division, including me. And surprisingly, my top two clients said, hey, why don't you start your own thing? And we'll stick with you. We want to keep working with you. And so that gave me the courage. I wish I would have said I pulled a Jerry Maguire and just stormed out of the office, grabbed a goldfish, grabbed one of the employees with me.

3:28But like most recruiters I talk to, I was too comfortable being in the nest. Even though I was frustrated with all the meetings and rules, bureaucracy, and all these things, all these KPIs that weren't helping me generate more money. And I was really frustrated comparing what I was making for my agency owner to my paycheck. That$20 ,000 didn't go to me. It went to my boss. I split that with a salesperson who got the client, and then I got a certain percentage. So I felt like I was working very, very hard for a small slice of the pie. And I realized the only way I could make the whole pie was to do it on my own, except I never had the guts to just make that leap.

4:06I had to get pushed out. So I thought, you know what? I have like six months of unemployment. Let's just give it a try. And worst case, I can always just go back to the world of recruiting, find a job. But it worked out and I haven't looked back since. Yeah, that's really exciting. And you definitely get people's ears perked up when you say, well, 20 % of somebody's first year salary, but there is work involved. It's kind of like a long, sometimes a longer lead time to make this deal happen. Like you're not going to pick up the phone or send a couple emails and say, all right, where's my check?

4:39You know, you're coaching people to get started in this. You know, where do you recommend people start? Like on the job? I guess it's playing matchmakers. You got to have a connection with the job searchers, the viable candidates, and then the people like the companies, the HR departments like making these hires too. So which where do you recommend people start? Right. Yeah. So it's like the chicken or the egg, right? A lot of people ask that. And it really comes to the client first, I believe, which is because they're the ones that's cutting you the check, right? The companies and hiring managers specifically that will bring you on saying, I will pay you 20 % of your candidate salary if I hire your person, right?

5:16So the idea is really client acquisition. I think it's where most recruiters struggle, which is because recruiters are good at recruiting. They're good at finding candidates. And they'll tell me, hey, if you give me a motivated hiring manager, a clear job description, in a few days, I can find some people. I can build a pipeline of candidates. But because that's what they do in their job all day long for many, many years very well, but they're very siloed, right? They're not exposed to the client acquisition side of the business. Normally, that's the agency owner or maybe their senior executive will go and hunt for new business.

5:46And that requires selling to VP-level hiring managers and committing them to use their services and negotiating fees. And that stuff is really foreign to most recruiters, right? So then that's why they come to me and say, hey, how do I go and get my first client? And how do I convince them to work with me versus the larger firms out there and that sort of thing? So client acquisition, once you crack that code, the rest is pretty straightforward. Yeah. So do people start locally? Do people start within a specific industry? Like we're in Seattle or outside of Seattle. So we've got Amazon here. We've got Microsoft here.

6:22We've got Starbucks here. We've got Boeing here. Do people start or do you start in an industry that you already know? Yeah, so I found the sweet spot for targeting clients is somewhere like the SMB or small to medium-sized businesses. Because if a company is too big that they're an Amazon of the world, they have an army of recruiters already internally. So as an outside agency recruiter, you're not able to add that much more value than their team of 40 recruiters. But if you go for too small of a business, they probably can't afford your fees, right? Nor are they really growing as much. They might be a one-time deal.

6:59So you want to find a sweet spot where typically they have like one HR person, maybe one junior recruiter, but they're just slamming. They're growing too fast where they can't possibly like fill all the roles themselves that quickly. They're kind of flooded with all these online applicants, right, from their job posts. And that's when you can come in and help ease some of that hiring pain. So that's kind of the size of the company I found works really well. And in terms of where you start, yeah, I think the main thing is if you work backwards and think, all right, picture yourself talking to a hiring manager, Maybe VP level, director level hiring manager.

7:30And when they start to explain to you their hiring needs, who they're looking for exactly, their perfect candidate, their requirements, everything they're looking for, the projects this person will be working on, that has to be very, very familiar with you. Because if your eyes kind of glaze over, if it goes over your head even just a little bit, if any part of you is thinking, I don't really know what this person is talking about or this role entails, the hiring manager is very intuitive. it, right? They'll know really quickly that they're like, okay, I just lost this person. And so they're not going to give you a shot, right?

8:00So if you have an IT background, right? It's natural start with IT recruiting. If you have a healthcare background, doing healthcare recruiting, there's a niche for everything in recruiting. And be able to speak the language. I can see how that would be a benefit to you. Right. Not just to get the client, but then when you actually go and recruit the candidates and they start spending their nine to five job, like you have to really understand that too. But the The good thing is it's not rocket science, like you said earlier. It's just playing career matchmaker and having phone calls and sending emails.

8:27So it can be learned as a skill, right? Kind of like sales, like public speaking. It's just any other skill. And if you're already like a good people person, then it comes very naturally. Are you looking at like Inc. 5000, Inc. 500 lists to say, well, here's a company that at least is growing top line revenue very quickly publicly. and then well within the industry that I know about you know here are the seven companies that made the list and now I can go start to find them on LinkedIn just try to narrow down the sea of all of the you know non-Fortune 500 companies that are out there. That's how I got started that's how most people do they kind of go and hunt for companies that are advertising that they're growing or advertising that is raised funding right which means they're growing or they're advertising specific jobs, you can go on a job board, see who's hiring and find that company and then reach out to them, right?

9:19Because you know, they're specifically looking for certain roles. But the problem is that's what everyone's doing. So you're fishing in a very crowded pond. And it's so time intensive. As you can imagine, if you have a list of 10 job posts to go find the company, find at least two or three people at each company that could have hiring authority, right? Maybe it's a director, maybe it's a VP, maybe it's a head of talent acquisition, then find them on LinkedIn, right? Send them a message, create a follow-up task. Like you can easily spend like half a day just reaching out to 10 companies only, and that will barely move the needle with such low volume.

9:52And I quickly found this out when I started doing this at scale and teaching people where they would say, hey, this stuff works, all your process works really great. I just don't have enough time in the day to do all of this manual prospecting work. And now it's back when we were on the 1.0 version of the program. And when I realized that it was so time intensive, especially for people who are doing this on the side part-time, I actually said, you know what, let me just actually what happened was it was kind of a shock, but somebody asked me for a refund. It was my very first refund request. And it was someone who I worked really closely with for like six months that I was really optimistic for.

10:25And his name was Ryan. He goes, Hey John, look, I got to tell you, like I did everything you said. It just, I just don't have enough time in a day between my day job and my three kids, right? And my wife, like, I like a refund. And that kind of was shocked, it kind of shocked me. And I was like, you know, went through the rollercoaster of emotions. But then, so I said, yeah, sure. You know, of course, like, so I pushed the button, hit refund, you know, sent those thousands of dollars back to him. And I'm like, oh, my wife's gonna kill me when I tell her, but she's like, actually, she's very proud of me.

10:52So, you know what, you did the right thing. Right. But when I actually sat down, and I said, you know what, if I were to be like 100 % personally accountable? How did I fail this person? What did my program not provide to lead to this result? And I realized, you know what, I'm making it too hard. People doing what you said, finding these companies by hand, just takes too much time. So I actually paused enrollment for like eight months and rebuilt the program from the ground up, the 2.0 version, using complete automation. So now we use automation tools to go and prospect for new clients, both on LinkedIn and through email.

11:29So that way it runs on autopilot and it works. The moment we did that, it's just 90 day difference. People got results super, super fast, right? Weeks and months instead of six months to 12 months. Okay. Interesting. I like the, well, obviously anything you can automate. That sounds better. I'm curious, like how does, if it's all automated, like how do you add a element of personalization? because I'm on the receiving end of a lot of automated PR junk and other pitches and stuff. And it's like, that's cool. I guess it's a numbers game and you hope to get a 2 % response rate or something. But if you put a little more effort into it, I'm sure the results could be better.

12:11Yeah. So we kind of solved for that by doing two things. One, instead of running one kind of general campaign, that's like, here's my generic message I'll send to every single hiring person. manager. Instead, you can build many campaigns and be very specific. So for example, I can pull up a list of only VPs of engineers with the keyword cloud security or something, or cloud cybersecurity. And then in my message, I can say, no, we specialize in placing cloud engineers with a focus on cybersecurity. And you can kind of have everything I do is contingency. That means there's no fee, no obligation upfront to view my candidates or even interview them.

12:49Please let me know if you'd like me to send you my two best candidates, right? And now because you're only targeting those specific hiring managers with those keywords, it tends to build resonance. Like, oh, that's exactly what we do. And then another campaign can go towards, you know, network engineers and how you use Cisco technology. That's your specialty, right? And you create these mini campaigns and that has a high response rate. But we also use video technology a lot, right? I think everyone's writing these like canned messages, these templates, and you can tell within a split second that they're not really customized for you.

13:19But we have technology and tools where you can actually record a template video message and using AI, it splices their first name into the message. So I can wave my hand, say, hi, Nick. And then what you can do, and this is kind of like some of our secret sauce, but you can take a screenshot of their LinkedIn profile and take another screenshot of their careers page, right? And then show your website. So then in a video within like 30 seconds, they'll say, hi, Nick, I'm reaching out to you because I saw you're hiring senior engineering managers and then I'm on your LinkedIn profile, right? Then automatically it switches to your careers page where I can say, I know that you're hiring these type of roles and we specialize only in this field and it goes to my website.

14:00So we would do all that by hand. And as you can imagine, it's very, very personalized. It's a custom video, right? But we realized at scale that takes a long time. So we've actually automated that process where we can create these templates and the software ties it all together. So you can mass send personalized videos where it bounces to their LinkedIn profile and their website and their careers page as many pages as you want. You can put it all together. The bad part was you used to have to record every single name. There's like 700 names. Do you have to pre-record? So then the software can insert that name.

14:31But now with AI, it does it for you. So you don't have to do that anymore. It's pretty funny. Dang. That's really cool. I mean, it's cool and it's kind of scary, creepy in a way. Yes. It is. We must use our powers for good and not evil. It's really weird. But you know what? The world of recruiting is very, it's been around forever. It's a very old industry like insurance or real estate. And I think the challenge that a lot of recruiting business owners or even senior recruiters looking to do this is that they just know what they've been taught to do, right? Which is manually go and smile and dial and do all the reach outs, right?

15:06But using technology, using B2B automation, things like that, the world of marketing, the world of recruiting, they don't overlap. So even for me, I knew none of this. I had to hire coaches and take programs to learn email automation, LinkedIn automation, using video technology from marketers, right? And pull it and apply it to recruiting. And when you're armed with stuff like that, no one else is doing any of this. So then you have a really competitive edge as a solopreneur or a small business owner in recruiting. Yeah, you really stand out. The job roles that you mentioned, like VP of engineering, that level, I guess probably based on the size of the company too, but is that kind of who you're targeting on the outreach side?

15:49Yeah, exactly. Anything above VP, they're really not hands-on enough to, or they're not involved in the hiring process, right? But even a manager, a manager doesn't typically have the hiring authority to onboard a vendor, right? Onboard an outside agency, they have to take it up to their boss. So typically, we'll say reach out to three people, each company, the VP of that role, the director of that department, and also the highest level HR person. So typically like an HR manager or talent acquisition manager, because you never know, they may be, you know, they may be the gatekeeper or they may be a partner that you can work with and work alongside with.

16:27Okay. Are you sending these through LinkedIn, just kind of cold? Or are you sending these through email? Both. Yeah, we do. that's kind of a one-two combo because everyone's on LinkedIn, but not everyone checks their LinkedIn inbox like every day, but people check their email every day. But of course, people get a lot of emails and this is good spam filters, right? So you have to do the email correctly to avoid the spam filters. But when you do both LinkedIn and email, then and have a sequence, right? Where you follow up with them offering value every step of the way, then you tend to catch them over time.

17:00You kind of have to, you know, pump yourself up in a way, hey, we specialize in, like you say, you know, cybersecurity engineers, and maybe you haven't placed any cybersecurity engineers. So it's kind of like, we, you know, we plan to specialize in this. And then, you know, and then what happens when they respond? It's like, yeah, send me your top two candidates. The good thing about that is that you have some time, right? Because then, because it's not that time sensitive. If you email me back in the morning, sure, send me your top two candidates. I could spend the next four hours now going and finding and cherry picking and identifying the profiles.

17:34Now, ideally, I have a rock star already in my back pocket that can reply back and say, here's somebody I can be really specific about where they went to school, where they live, what salary range they're looking for. But worst case, I can just go into LinkedIn and cherry pick like two profiles, you know, make sure they don't work at that company, right? And then attach them, maybe take out their names and make it confidential, right? Like scrub the resume is what we call it. And then in my response, I might say something like, Nick, attach to profiles of individuals I've identified that could be a possible fit for your role.

18:06And so I'm not saying that they're real candidates. I'm saying that they're profiles I've identified. And when I show them to you, and I can say something like, attach to the profiles, obviously I'm taking a shot in the dark here just based on your job description. But if I'm at all close to the mark with what you're looking for, then let me know. I'd be happy to jump on a quick call. I can learn more about exactly what you're looking for and send you even better candidates. Right. And most people don't even do any of that. So you're actually like offering value and doing some of the legwork up front.

18:35Okay. Gotcha. So that's kind of the typical process flow, you know, cold outreach, get a bite and then, you know, provide some like, Hey, based on what you told me or based on the job description, here's some profiles that I found that might fit your, fit your needs. You know, let's, you know, does it make sense to continue the conversation here? And you get the, get the ball rolling. And then when you do schedule a call, it might be one or two days out, in which case you can then find a live candidate that you've spoken to, right? Even if they reply back saying, hey, tell me more, you can then kind of honestly tell the hiring manager, I'm in early conversation with this individual and have a couple of people kind of just to show.

19:12And that way you come to the table with something and not nothing. And that's kind of what we call our candidate focused approach in sales, because it takes the attention off you and all the questions they might grill you about how long you've been doing this, which other clients do you work with, which tends to be very scary, right? And instead, you put the attention of the candidate. So if you're a hiring manager and I brought to the meeting, two profiles are very, very strong. You're probably not going to grill me too much about whether or not I know how to find them, because I'm already showing you that here are people that I brought to the table.

19:43And so, yeah, it makes it a lot easier and takes the pressure off trying to have to sell yourself to everybody. A lot of side hustlers suffer from what-if-itis. What if it doesn't work? What if I don't have the skills? What if I pick the wrong path? But one thing 100 % of our amazing guests have in common is they took their shot. They faced down those what ifs and they got their answers through taking action. Our partner Shopify helps turn what ifs into why nots. Shopify is the commerce platform behind millions of businesses around the world. From household names to the very guests on this show.

20:16What if I can't design a website? Shopify's got you with ready-made templates to match your brand style. What if people haven't heard about my brand? Shopify helps you find customers with easy-to-run email and social media campaigns. And what if I get stuck? You can tap in to Shopify's award-winning 24-7 customer support. Let's turn those dreams into and give them the best shot at success with Shopify. Sign up for your$1 per month trial and start selling today at shopify.com slash side hustle. Go to shopify.com slash side hustle. Shopify.com slash side hustle.

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21:32Because if you can't answer the phone, Quo's AI agent can, it can qualify leads, it can route calls to the right person. And it's going to make sure no customer is ever left hanging. Think of it like having 24 seven support without the 24-7 payroll. More than 90 ,000 businesses are already running on Quo, from solo operators to growing teams. Try it free when you go to quo.com slash side hustle. That's Q-U-O dot com slash side hustle. You can even keep your existing number. Quo. No missed calls, no missed customers. Yeah, I was going to ask if you include like a website link or a LinkedIn profile link in the signature of the emails that somebody can click on and you have at least a brochure up about who you are and what you do and how long you've been doing it or you change your LinkedIn profile.

22:26Well, I feel like the less you have to, the less marketed you are, the more it comes across just organic and natural. And he goes, hey, this is what we do. Here are the only people that we place, Which is why it starts with my six-step process for this is step one is pick a hyper-focused niche. So that way people see you as a specialist and not like a generalist recruiter, right? So you kind of have to have a specialty to really stand out. Because otherwise, if you see a recruiter in pretty much any type of role, then it's hard to get traction that way. Interesting. It's like the Cheesecake Factory.

23:01When your menu is 300 pages long, are you really going to be a specialist in any of this? Firstly, the burger joint that has like, they serve one thing, which is a burger. No chicken, no hot dogs, just burgers. And you know, like just line out the door for it, right? Okay. So the reason I bring that up is like, okay, we don't necessarily need to overthink it, put the cart before the horse by, you know, creating this whole, you know, web presence for this. It's kind of like do this outreach stage first to see what kind of traction you get or what kind of reaction that you get in the market. Yeah.

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23:32And you don't even have to say, yeah, people do ask about like, do I need to do a lot of content marketing and be a thought leader and post yeah make videos and content and really like you don't need to like it's just direct reach outs because in recruiting you only need like three to five clients to be like absolutely busy because think about it three let's say you have four clients you get through this direct outreach method and each client gives you three positions to recruit for that's 12 open job orders is what we call roles for you to fill and 12 different roles that might have and most of them might be different too right so then you're in conversation and each position you want to send like two or three candidates, right?

24:09Let's say three candidates per role. Now you need to submit 36 candidates, which means you probably have to talk to like 300 people. So you're kind of like slammed, right? So once you get three or five clients, you're good. And then later on, the game is like, okay, upgrading those clients and getting ones with higher fees, better clients. And without a process for getting new client calls printed on your calendar, though, you end up kind of being stuck with the one or two clients for most of your career and never quite grilled beyond that. And because you're not, you know, creating YouTube content, you're not creating social media content.

24:45It is kind of how you described as stealth mode, where you're not necessarily waving the flag in front of your current employer and say, hey, look at me, look at my side hustle. Exactly, exactly. Which is why we say on LinkedIn, you don't want to put like founder of so-and-so staffing company. No, no, you want to just, you can have your LinkedIn profile completely, not have your business on it. Your website can have your business, but not your face and your name, right? These are some stealth mode best practices that we teach. And then when you reach out, and the tricky part is if you work at a recruiting agency or you work as a corporate recruiter, then they get kind of where people get worried about like non-compete clauses or potential conflicts of interest, right?

25:23I'm like, well, I, you know, my company does IT recruiting, but I want to start my own IT recruiting side hustle. how do I go about doing that without stepping on toes and sleeping well at night and not looking over my shoulder? But as long as you implement these best practices, then everything is kind of above board. Your message, though, needs to be vague enough where if I send a reach-out message to a hiring manager who happens to be best friends with my boss and they fork that message saying, hey, I think one of your people sent me this, it better, one, not get you in trouble, and two, ideally, make you look good.

25:55So, example, if I was working at an agency or even a corporate recruiting role, I could say something like this. I could reach out to a hiring manager to say, hey, I'm reaching out because I'm working with a candidate who has XYZ background, highly skilled, just start looking for new opportunities. And that would say something like, unfortunately, I don't have anything for them on my side. No, but they saw that we were connected on LinkedIn. And when I asked them which companies to respect in their field, your name came up first. So I wanted to see if you might be interested in having a broker introduction, right?

26:26Something like that. Okay. If your day job is already in recruiting. Right. If your day job is in recruiting, you have to say something like, unfortunately, we don't have anything for them at my agency. And that way, if your boss finds out, it'll just look like you are trying to do what we call preserve the candid experience. Because even though, even corporates, like corporations, Microsoft will say, hey, if we pass on somebody, make sure they leave feeling good, even though we took them through eight rounds of interviews, make sure they leave feeling good so they don't badmouth us to all their other colleagues, right?

26:56So they're very sensitive about that. So if they see that message, it just sounds like you're trying to preserve the candidate experience by trying to hook up a candidate who you said no to and trying to at least send them off in the right direction, right? Okay. Yeah. Avoid conflict of interest because yeah, until this thing is up and running, definitely don't want to burn any bridges with the day job. That makes sense. Yeah. So what happens next? So you got a couple bites from this cold outreach and now you got to go find the potential candidates. Let's talk about that part of the process. Yeah.

27:26So a lot of people think that the hard part is finding the candidates, but it's actually not that hard because nowadays with all the LinkedIn services and platforms, we all have the same tool. So finding the people is relatively easy, but engaging with them is hard, especially engaging with what we call passive candidates, people who aren't looking for a job. They're really working for your client's competitor. They're heads down. They're not taking any interviews. how do you engage with them in such a way well they're even they'll even take your call right especially when they get bombarded like every other day by recruiters so that's the tricky part and that comes down to having the right message doing creative things like video messaging we talked about or on linkedin you can send an audio message like things that kind of stand out then hey i saw i have a great opportunity for you like you know first name right like you want to avoid those anything that you send sounds like a canned template or sounds like something a traditional salesy recruiter would say, you just have to do the opposite, right?

28:23Which is why when you talked about brochures and marketing language, I'm like, oh, no, no, we want to go meta, go the other way. They sound like you're some dude who's on the couch or you're just kind of like sending this through your mobile app, right? On LinkedIn or something like that, really casual. So yeah, that becomes the hard part is how do you engage with good candidates? And lastly, like once you've tapped LinkedIn, like, you know, most people, once they reach out to everyone on LinkedIn that could be a fit, then they've exhausted their search because there's nowhere else I can find them.

28:52And then having skills beyond that to find people past LinkedIn, like using Google as a hidden resume database, knowing these what we call Boolean search strings where you can type in long strings of code or basically it looks like code and they can actually pull up like PowerPoint presentations from keynote speakers at cloud security conferences where the last slide says, contact me. Like being able to pull up those little things like Ninja Server or pull up a spreadsheet of conference attendees that has their name, title, contact information. Because when you register for a conference, you normally have to put in that information.

29:24So you can pull that up. You can actually do some ninja headhunting. And those people really aren't advertising themselves on LinkedIn. So that's another skill to be able to find people that aren't easy to find, right? What's that typical first message like? Like, hey, without sounding overtly salesy, like, hey, I got a great opportunity for you. If that's a red flag, what gets those emails opened or messages opened and responded to? I like starting off my messages with what I call like a softening statement. Because most people who reach most salesy people and salesy recruiters, they're very optimistic, positive and upbeat.

30:05So I try to be the opposite, which is skeptical, curious. You know, like that's where energy. So I'll say something like, hey, Nick, not sure if this would even interest you, or not sure if my timing is right. But look, given your background in this role, this, this, as well as your experience working at this company, so I'm calling out a lot of specific things, right? And your location in Seattle, I thought you might be a good fit for this opportunity in Seattle. They're looking for someone just like you. Gotcha. So what kind of fact finding do you have to do if you get somebody to take a call with you in terms of their expected salary, their timeline?

30:44Like what, you know, to convince somebody to leave their job for something else is a big, it's a big ask. We can have a rule where like the reason for your call is to uncover the truth about whether or not that person is looking to make a move at the time of your call, like right now. So number one, I'm looking for some type of career pain or hiring pain. So if I say, hey, Nick, it looks like you've been here for six years. Is there anything you're looking for outside your current job? And they're like, no. And if I ask you, well, what brings you on this call? Well, you reached out to me. I already know, okay, this is not going to go well.

31:20They don't have any real reason to leave, right? But if you say, you know what, my commute is two hours round trip each day. I'm missing time away from my family. My wife's upset. or I've been at the same position for two years now. They keep promising me a promotion. It hasn't happened. Or there's financial stability in my company. I see people getting laid off, right? I don't want to be, I want to get ahead of this. Like those are real, those are real pains, right? And then because if you're not motivated to make a move, the last thing I want to do is to present you to my client, have them spend time taking you through their interview process, get them excited, they make you an offer.

31:54And you're like, no, you know what? I'm good. I'm going to stay where I am at, right? Now the client will get mad at me for getting their hopes up and wasting their time. So I'm really trying to figure out whether or not there's pain there. If not, that's okay. Yeah, how serious are they? Right. And I'll say things like, you know what? The last thing I want to do is break up a happy home. If you're happy where you're at, that's great. I don't think you should make a change. Because I'm going in very skeptical. I think the more skeptical, the more, you know what? like it might not even make sense for you to look elsewhere then the more you start to prove and qualify to me why you are and why you want to make a move right yeah it's almost a like a reverse you know qualification process and it starts with your what you called your softening statement like hey not sure if the timing's right not sure if you'd be interested like just you know knowing that it's a numbers game and i've got to kind of reach out to 100 people to find the one it's like you know if you got to check all these boxes to kind of make it through these these filterings filtering process but i'll tell them as i'll in my message i'll say look you're not you're not one out of 100 people reaching out to this week there's only like eight people about eight people i found in the seattle area they can do this specific job and you're one of them so i'm hoping to at least connect with you and and share with you some information right okay yeah so that's part of the messaging too right gotcha and then you share the the company posting or the one that you're specifically looking for candidates for?

33:21And then at what point? So they say, yeah, the commute is awful. I'm worried about the solvency of this company long-term. Yeah, I'm open to all opportunities. What have you got? Yep. And then so then that's when I'll talk about my client, what to do with the name, the salary, the pay range, paint the picture for them, right? Which is why I'll ask the client, hey, how do you sell candidates on your opportunity? And I'll write that down and And I'll just regurgitate your soundbites because you sell your company the best. You're the CEO. You're the VP, right? And then if they're interested. And then I ask them one very specific question.

33:56Very, very important. And when I mess this up, it's always been to me, right, in the butt, which is, have you ever applied to this company or been presented by another recruiter or submitted your resume online before? Because if they say yes to any of those questions, then I can't use them. Like I have to end the call. because otherwise if I send your resume over and they say, oh, hey, thanks, but I have, oh, you know, we have him in our database, but thanks for bringing that to our attention, right? Or I see him here. So we only get paid as recruiters to present people who are brand new that they've never come across before.

34:29So I always make sure that you haven't applied online directly. If you have, then I have to find you another opportunity, right? Which is why when I tell candidates, what should they do for their first step in their job search, which is, hey, reach out to recruiters, Let them exhaust their network first. Because if you go online, apply to every single job posting online, and then use a recruiter, you basically kind of tie their hands. You know, you reach out to all their clients already. They can't, like, vouch for you with leverage their relationships on your behalf. Yeah. Yeah, like, we're not paying you the finder's fee because, you know, that guy already found us.

35:01Exactly, exactly, right? I'm like, oh, okay. So we make sure we ask that question a lot. Yeah, it's the same way with certain affiliate programs. We're going to pay for sending us a new customer or we're going to pay you a bigger commission for sending us a new customer versus a repeat customer. Like, you know, that was already our customer. We should have. Exactly. Why would they use$20 ,000 for that? Yeah, exactly. Yeah, yeah, yeah. Okay. So if they have never applied to this company before, they're not in their database of resumes. Do you then encourage them to go apply to the online system?

35:35Do you send an introductory email? Like what happens next? Exactly. Then we do what's called a candid presentation or candid submission where I'll then send the candidate over to the hiring manager. I'll write a nice little email with the bullet points of their qualifications, their salary, the reason for the pain that I learned, the reason why they're going to make a move, and then their availability for interviews. So that way, all the client has to do is say yes, and then choose a day and time, and then book the interview. Or if they say no, then I ask the client up front, hey, if you pass on them for any reason, can you at least give me feedback why they want to fit?

36:12And that way, I can dial in my search, get your people closer to the mark, right? Okay, gotcha. Yeah, and then at that point, yeah, so I kind of handhold everything. You want to have what we call a candidate control or client control. You want to be really on top of everything. make sure nothing slips through their cracks and that you're like the middle man and just kind of moving this thing along. Yeah. Make sure that, well, make sure that they know that it came through you. Yeah, exactly. The moment email is when you get dibs. Yeah. You, you kind of put dibs on the can at the moment you like send that email over.

36:44Okay. No, that makes sense. And then. Did you know there's a disease running rampant alongside hustlers and new entrepreneurs? It's called superhero syndrome. Symptoms include a feeling like you got to do everything yourself. thinking you're the only one who can do it right and struggling to let go of certain tasks. Does that sound familiar to anyone? But the good news is there is a cure. Our sponsor Indeed can help you find the best candidates for the roles you need to fill and find them fast. Stop struggling to get your job posts seen on other job sites. Indeed's sponsored jobs help you stand out and hire fast.

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37:56Terms and conditions apply. Hiring Indeed is all you need. From there, the person, you know, goes through the interview process, they get hired and, and you get paid. Yeah. Well, yeah, you get paid. And ideally, you also want to help mitigate, avoid any type of potential bombs that can blow up, right? For example like uh you know and this is an early mistake that a lot of recruiters make and i made for sure is like once they uh got the job offer and they accept it i thought done deal i'm already figuring out what i want to spend the twenty thousand dollars on right uh but then they end up giving the two-week notice and their boss sits down they're like nick whoa whoa whoa like where's this coming from have a seat you know like uh we were just talking about a big promotion for you right just around the corner this would be the worst timing like show me the offer that you got oh you know what we can beat that give us a chance to like beat that for you right like yeah so you'll and so then you get that call like hey hate to bad you know break the bad news but i'm not gonna start work and then that's how you lose clients because they get mad they're like you know you should have you should have been on top of this right so part of the r2 is like coaching candidates on how to give a two weeks notice and like being firm and and role-playing with them about what if they got counter offers, how would they, what would they say?

39:11Right. And so that way they're like, you know, they don't get susceptible to like, yeah, having a change of heart, right? Stuff like that. So you have to do all those things because especially when there's 20, $30 ,000 on the line, you want to make sure like there's no hiccups, right? No, no surprises. I can see that happening all the time. Well, yeah, it's because it's expensive to fill these positions. Like, wait, wait, wait, don't go. We can, we can batch that. Right. They have to be like, well, Hey, listen, did you really want to stay with a company that's, that's only going to pay you what you're worth once you threaten to leave.

39:40Or talk about how counter offers are just a temporary band-aid of basically they're buying themselves some time in order to replace you long-term. Because you've already signaled to them and the whole company that you're not loyal, that you've already interviewed and accepted an offer. That's how much you want to leave. And them keeping you, this is going to help find your replacement without downtime. You've got to do all that stuff before they even get the counter offer. So that way, the moment they get it, they're not even tempted by it. So, lots of little nuances. And that's really kind of where the art of recruiting comes from.

40:12It's hard to learn that unless you've been working and recruiting for 5, 8, 10 years of coming across scenarios after scenarios where this stuff happens. Because when you make those mistakes and you learn through the trial and error, these are very expensive mistakes, right? These are like$20 ,000 mistakes. So, kind of what we do is we try to help make that a little easy. Like it's the easy button because I've made those painful mistakes, every mistake in the book. So hoping fewer people will have to. Yeah, no, I'm grateful for you sharing that stuff. It's a different ballgame, but I read this book on college athletics recruiting and a lot of salesmanship that goes into it where it's like, you know, the best people have the best pick of all these different schools.

40:52Hey, full ride scholarship, who do you want to play for? And it's just, you know, which coach and which coaching staff and which facilities can make that presentation the best. And it's just, I mean, it's fascinating high stakes world. and even more here where you got lots of money changing hands in potentially a short period of time. But I was going to ask if there are any metrics that people ought to be aware of, like it's going to take, you know, a hundred emails, it's going to take 300 emails. Like what, what kind of, you know, working through the funnel of potentials, candidates to phone calls, to, you know, introductions, to interviews, to hire, like it's, I imagine there's a lot of drop-off every step of the way.

41:35Yeah. So we kind of say like for every one position you want to fill, you want to submit at least three solid candidates. And to get to three candidates, you probably need to talk to maybe like 50 people, right? To get your top three. And then 50 people to find three that are not just qualified, but are currently open to interviewing at the time of your call, right? So timing is everything. So talk to 50 candidates and then, and that's for every single job you're working on. And to talk to 50 candidates, you have to reach out to maybe a hundred. So to do that at scale, if you have several jobs you're looking to fill, it's really impossible or near impossible to do it by hand, unless that's all you're doing, which is business development.

42:15But the moment you get a client that gives you business, people tend to take off their business development hat and put on their recruiting hat and go fill the role and try to get what's called closest to the dollar. which is why like I think I've been such a big proponent of like using the automations to just have that send out the high volume messages to hiring managers and then you just focus on you know finding the perfect candidate right which does involve more of a hands-on customized approach because you don't want to send you definitely don't want to send like a canned message or an email blast to candidates because it might only be a handful in a specific area that will be the perfect candidate so you don't want to like shoot your shot and not have it be like the best shot, right?

42:55Right. With the somewhat softening of the labor market, especially in tech with tech layoffs going on the past six or 12 months, like, have you seen any ripple effect of that for yourself or for your students? No, but because you're doing a nationwide search for clients, and like I said, you only need three to five clients to really stay busy, then it doesn't take that much time to, because right Right now, if you go on LinkedIn, type in United States, type in jobs, there's like almost 6 million job posts right now on LinkedIn. And these are companies that are struggling so much with hiring that they're paying LinkedIn for a paid, expensive, advertised job slot.

43:33So if you can get three jobs out of the 6 million or maybe it's 300 ,000 when you narrow it down by your niche and your location. But still, it's 0.01 % of the market that's hiring. If you can pick that up, you're in very good shape, right? Yeah, it doesn't take much. I think that's one of my biggest takeaways from this, where, you know, if you just get a handful of clients, you help them fill their positions, you can make great side income doing that. Do you need to do anything to protect yourself up front with like contract-wide? Like, hey, just want to make sure that we're going to be, we're not going to have any misunderstandings here down the road if and when that person eventually does get hired.

44:10We have those out of the box and they're pretty straightforward. It's a one-page that says, if I hire your candidate, I'll pay you 20%, 25%, whatever you agree to and that we guarantee them for 90 days typically so within 90 days if they don't work out you let them go they'll leave for any reason then we'll either replace them or give you a refund so that's kind of the standard recruiting agreement yeah this is i can see it fitting in as a side hustle especially with automation and especially like taking calls after hours like well shoot i'm working if i'm uh happy or reasonably happy with my day job but i'm open to opportunities like yeah i'll take your call at you know 5 30 you know as i'm driving home or something.

44:47And so I think I see it fitting into the gaps in people's schedules without having to necessarily, especially if you target people from different time zones, if you're on the West coast and you're talking to New York clients, it's like, okay, they're, they're 6.00 PM. It's only your 3.00 PM. So it's, it's easy, right? Absolutely. So you've got recruiting accelerator.com help people get started over there. Where do you want to take this thing? What's next for you? Yeah. So for me, I've been kind of fortunate enough to build a team around me for coaches and enrollment people and marketing and operations where I get to really just geek out now and work on products.

45:20So right now, I'm really just focused on building the 3.0 version of the program, which involves new AI tools out there, different tech stacks, how to hire and train a virtual team of recruiters, things that really people are struggling with. And I think a lot of people in the course and coach base in general, they kind of are selling programs they made like four years ago and they're teaching the same old stuff right so i i know maybe it's my like i'm just never content i always feel like it's better stuff out there and if i see better stuff and i know that i'm not offering it i kind of feel like i'm cheating my my people like so i really spend as much time as i can r d uh as much as possible they're just building better tools and testing it out beta testing it and then rolling out to my people so well i think it's really telling sorry to interrupt there well i had one person ask for a refund and you're like full stop I got to pause this thing.

46:12What did I do wrong? I let him down. I let him down. I got to pause this thing for eight months and revamp the whole thing. Where it's just like, hey, maybe it wasn't a fit for this. I could see myself being, hey, you win some, you lose some. Okay, give the refund and on to the next thing. But yeah, so I think that's really telling. Thank you. Yeah, so it's really fun to kind of see people get results so much faster than I did when I did the old way, the trial and error way, right? And I think as a side hustle for your people, like the people I found that really resonate with this business are people who they're entrepreneurial.

46:48They have people skills and they don't really necessarily want to learn a whole different technology. Like they don't want to get into like social media marketing management or e-com or drop shipping or things that are just like skew code. Things are very technical and like, like, ah, they're more like, I just want to talk to people and I'm, you know, use my personality and I'm good at sales. I'm good at people. Right. So. So, yeah, really low overhead, like almost no startup costs. Yeah, low overhead. Just raise your hand and say, okay, I'm going to try this out now and do some recruiting. Low overhead.

47:19You can do it from home. It's helping people. You're helping companies hire good talent, helping talent, like upgrade their careers. And you're making a difference. You can sleep well at night. You get paid a lot of money. The problem is it's very competitive because it's a low bar to entry. So, unless you know how to stand out from the crowd and you do things that they're doing, which is really kind of like harking to what you're saying about the most common mistakes is everyone goes out there, but they sound like every other recruiter to the client and to the candidates. And so they get lost in a sea of competition and then they just kind of get frustrated and give up.

47:51Whereas if they could just apply a few tweaks, right? Or a few different tools, then it kind of cracks the code and they do really well and they enjoy it. And they can work from home, they can travel, they can have freedom and just enjoy talking and helping people. So it's kind of a nice business for those type of people that like that sort of thing. It makes sense to me. So we're recruiting accelerator.com. You can check John out over there. Side hustle nation.com slash recruiting is your quick referral link to an evergreen training that John's put together on the six step process to scoring your first client.

48:24So side hustle nation.com slash recruiting for that. John, thanks so much for joining me. Let's wrap this thing up with your number one tip for side hustle nation. does not have to be recruiting related just to whatever entrepreneurial wisdom that you'd like to impart. I watch YouTube videos. I go and get free content. I listen to podcasts. Great information out there. But I feel like whenever I pay to join a mastermind or pay to join a networking group, the content and insight and the connections I meet are definitely worth the ticket price. This past year, I recently invested in a mastermind for business and marketing.

48:57And they charge$68 ,000 a year for this mastermind. And at first I was like, this is crazy. but you know like i thought you know slept on it for weeks and i finally pulled the trigger and we did a live event they went to did a live event in cabo and it blew my mind and already like i've made money just from the networks and we did business and just unlocked so many things but yeah you kind of get you kind of want to pay for a mission to be in a certain room or be around coaches or mentors or anything so and i've kind of been able to accelerate my career and my business just from being the right people and i think that also like the idea of investing money you naturally as a rational human being you're looking for an ri on that money so you're actively pushing to go and meet people and try more and you know you put your money where your heart is and so yeah that's my one tip yes it's true it's an accelerator in a lot of ways and it took me a long time to come to appreciate that like just a very naturally frugal and stubborn you know like i could figure this out on my own and like just beat my head against the desk and have you know for the last several years, at least to my credit, have, you know, raised my head up and, you know, could I, who could I learn this from, you know, to accelerate this?

50:06And so that's been beneficial in some ways. And you do see the ROI and at a certain level, you may only take one idea, one, you know, a 1 % improvement, if you're already operating, you know, could be worth quite a bit and easy to recoup that investment. So that's, I have yet to invest in the$68 ,000 mastermind, But maybe someday that sounds like a pretty serious. One last thing is by paying that much money to go in other people's programs, other mentors and coaches, then when I charge what I charge, right, then I can do it with a straight face and confidence. Because I'm like, yeah, I invest as much in – I invest thousands of dollars everywhere else.

50:44So otherwise, I had the weird imposter syndrome when I was charging high ticket, but I wasn't investing in high ticket myself. I was like, okay, like, you know, there's some cognitive dissonance there. But when you're used to investing in yourself, and then all of a sudden, when you ask for that investment from other people, they can pick up on it that you know this is valuable because you practice it by implementing yourself, right? So that's all. That makes sense. Yeah. So I like this call. It's only going to take three to five clients to make this a viable thing, at least on the client side.

51:18Then you go out on the candidate side. But then your point about recognizing that this is sales. This is a numbers game, kind of like any sales role. But the idea about searching for pain, really on both sides, like on the candidate side. Look, if this were easy, we would have filled this position. Or rather, on the client side, if this was easy, we would have filled the position months ago. But instead, we're really having a hard time. So yeah, we're willing to cast as many nets as necessary to go out and fill this role. And then on the candidate side, well, yeah, it's finding, well, do you not like this commute?

51:52Have you been, you know, are you at the ceiling of your advancement at this company? Are you worried about the future? Like all those kinds of things that like, you know, really trying to, you know, improve people's outlook, improve people's careers while helping these other companies solve these problems. So I think that is a natural fit for people who like to play connector, like to play matchmakers. You got it. You can, you can, you can recruit now. Yeah. That's my next, my next side. I actually did. So total, total side note, I was doing like virtual assistant recruiting, very part time, kind of in the early days of the side hustle show.

52:27I had this virtual assistant website and, you know, it was not advertising the service, but, you know, I, a reader of the site, you know, reached out. It was like, could you define, could you find me some like Squarespace specialists? And it's like, I don't know, I'll take a crack at it, you know? And it was probably similar, you know, it's probably 10%. of their first year's salary. Maybe I was undercharging, but I'd never done it before. I had no idea what I was doing. And I ended up finding probably four or five people for this guy. I don't know. It was an interesting little side project at that time, kind of an accidental.

53:04Did he ever come back to you later on for more people? Did he ever ask you again? Yeah, we had a thing for a handful of months. And then it became hard. I don't know. We tapped out the available people, at least that I knew how to find. And so it was kind of like, I hit up the ceiling of my own capabilities in that space without really investing to learn more and how to find extra developers. No, but you fell into it as well. See, there you go. People just fall into it. And yeah, and when you get the opportunity, you kind of rise to that occasion and take a crack at it. And when it's your own thing, and then it's very motivating to like work hard and make it happen.

53:38I totally forgot all about that. That's like a funny reminder. That was probably almost 10 years ago. Wow. Side hustles on side hustles again. Uh, John, you can find him at recruiting accelerator.com. If you're new to the show, that is awesome. Thank you for joining us. There are hundreds of actionable evergreen episodes in the archives. If you're not sure where to start, why not generate yourself a personalized playlist? You can do that at hustle.show. All you got to do is answer a few short multiple choice questions. I'll build you a custom curated playlist of the episodes that I think are going to be most relevant and most impactful for you.

54:15That is at hustle.show. Big thanks to John for sharing his insight. You can hit up sidehustlenation.com slash deals for all the latest offers from our sponsors in one place. And thank you for supporting the advertisers that support the show. That is it for me. Thank you so much for tuning in. If you're finding a value in the show, make sure to text to a friend. Check this out. Until next time, let's go out there and make something happen. And I'll catch you in the next edition of the Side Hustle Show. Hustle on.

54:46We'll be right back.

From the publisher

Starting a recruiting business can be a lucrative side hustle, especially if you love playing matchmaker.
Jon Chintanaroad knows the recruiting business inside and out, having worked for staffing agencies before starting and selling his own recruiting business.
Today, he helps hundreds of other people start and expand their own profitable recruiting businesses at Recruiting Accelerator.
Tune in to episode 568 of The Side Hustle Show to learn:

Jon’s best practices for acquiring new clients and finding candidates

what he calls “stealth mode”

how to set yourself up for success

Full Show Notes: How to Start a Recruiting Business and Earn $10-20k Per Hire
New to the show? Get your personalized money-making playlist here!

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