A Tale of Two Recruitment Business Owners

April 25, 2012

(NB: This is a true story, only names have been hidden to protect the innocent)

One day, on a rainy spring afternoon in London, 15 years ago, two men attended a seminar for budding recruitment business owners…

They were very much alike, these two men. Both wanted to make a difference in the recruitment world, both were friendly and people focused, and both had big dreams for their future recruitment businesses.

They vowed to stay in touch, but as the years rolled by they gradually lost contact, that was until recently when they ran into each other at a soccer match.

They were still very much alike. Both were happily married. Both had children. And unlike many who attended the same recruitment business seminar, both had started their own recruitment businesses AND were still in business, despite the ups and downs of the economy.

Both also had excellent reputations for being great recruiters.

But there was a striking difference…

One of the men worked in his business 40-50 hours a week, and made a modest income for his family. (around 85k pa) The other spent more time with his family than he did working, and enjoyed a multimillion recruitment business.

What Made The Difference?
Have you ever wondered, as I have, what makes this kind of difference in people’s lives?

It isn’t always intelligence, or hard work, or luck. And it certainly isn’t that one person wants success and the other doesn’t. The difference lies in what each person knows, and how they make use of that knowledge.

The first man – who worked very hard to bring home a modest income for his family – had become an expert on the latest techniques in recruitment, you name it, and he did it! The second man – who had achieved all his financial goals – had become an expert on marketing. The first man had become a master of his craft and had a job… while the second man had become a master at bringing in new clients, getting bigger deals, and had a business.

The first man took pride in doing every job himself – he had to make sure it was done right… while the second man – with his higher revenues – took pride in hiring highly skilled people to be a part of his team and be excellent in areas he was weak. He also discovered the importance of systemising his business so he never had to recruit experienced recruiters.
The first man’s business was his life; it constantly interfered with his relationships and his health. He also had the constant challenge of never being able to find good consultants and only getting business by “cold calling”…. while the second man’s business enabled him to create the lifestyle he dreamed of ten years ago. Every month his business would generate 100 leads and his consultants never ever made cold calls. In fact pestering potential clients with cold calls were banned.

How do I know this?

…Because the second man in the story is me.

But here’s the reason why I tell you this true story…

This exact same story will be repeated in hundreds of recruitment firms over the next few years.  Many new recruitment business will start and HAVE A RECRUITMENT JOB RATHER THAN A RECRUITMENT BUSINESS… only to struggle to find the clients, struggle to make ends meet and either stay trapped in a job they hate, not being able to make the leap or worse having to go back to the job they left because they can no longer pay the bills. If they’re lucky, perhaps they’ll make a bit more money than they did at their former job… but with more stress and work along with it.

But a small handful of recruitment business owners will go about things differently.

This small handful of recruitment business owners will…

* Position themselves as the dominant player in their industry – the one people go to FIRST when seeking the recruitment service they provide
* Become one of the “big boys” that scoop up 80% of the available recruitment business… while the small fish who don’t know any better compete with each other for the scraps
* Set up their businesses so they not only run themselves by building a team but grow on their own… increasing net profits year after year while spending LESS time actually working
* Will use the 12 effective routes to market, and not just rely on making COLD CALLS to get business
* But perhaps most exciting… they’ll do it without working any harder than the others… and while having a whole lot more fun!

And the way they will do it… will be with MARKETING.

So the lesson from the story is quite simple… The fastest way to grow your recruitment business in today’s economy is not by doing more hard work… But by improving your marketing!

If you would like to access the latest marketing tools that will enable you to make more placements and earn more visit www.drewcoaching.co.uk

Please note: any adverts on this page are not connected with drewcoaching.


Did you run out of petrol?

April 4, 2012

Last week the UK government announced a “possible” fuel tanker drivers strike!

This led to fuel stations across the UK packed full of panicked buyers over spending on fuel, filling their car up with fuel they don’t really need.

Demand for petrol rose 172% on Thursday, and diesel by 77%, according to independent retailers’ group RMI Petrol.

There is a great book by Robert B.Cialdini – Influence Science and Practice, that looks at the factors that influence human beings to buy, it is considered a must read for any business owner that is looking to persuade clients to purchase from them.  Once you read this book I am sure you will appreciate the whole science of scarcity.  Let me explain…

In our need to control our world, being able to choose is an important freedom. If something becomes scarce, we anticipate possible regret that we did not acquire it, and so we desire it more. This desire is increased further if we think that someone else might get it and hence gain social position that we might have had.

In his book Cialdini tells a story of a salesman who always arranged for more than one interested buyer to arrive when he was showing a used car. The competition increased anxiety in both of them, and made the car seem much more attractive.

As a recruitment business owner, you can use this principle to help you make more placements and earn more money.

The scarcity principle is one that has been used by smart recruiters.  When something appears to be scarce, as human beings we instinctively want it more. Even though we don’t really need it!

You will have seen the expression ‘limited numbers’ used in adverts and direct mail — this again is the scarcity principle in play. Direct mail often includes these expressions to create the feeling of scarcity: A time sensitive offer such as:

“Reply with 7 days and receive this additional bonus,” or “Hurry – limited stocks.”

Is there an honest — time sensitive offer— you can include in your sales and business communications?

Perhaps when marketing a candidate.

Psychologists have found that the reason that scarcity is such a powerful principle is because as humans we are motivated by two main factors: “To avoid pain” and  “To gain pleasure.” Avoiding pain (fear of loss) – works better for creating action than the gaining of pleasure (an advantage or benefit).

We’ve certainly seen what happens when a shortage is announced about a staple commodity.

“Petrol is in short supply!”

What happens… yes, everyone goes out and buys loads of petrol, thereby making the problem worse.

TV infomercials and shopping channels use a flashing panel which states:

‘LIMITED numbers!’

Now here’s a strange observation from Robert Ciadini, if people manage to obtain the item that is scarce they will also believe that it’s better than if the item had been in plentiful supply.

So how can you use that in your business?

Do you always create scarcity in your communications to encourage your client to call you, email you and take some form of action?

You better do it quick because if you don’t and your competitors do, what are the implications for you and your business?

Wishing you continued success,

Terry Edwards

Please note: Any adverts on this page are not connected with drewcoaching