8 Phenomenal Tips to get your staffing business out of the ......Bob Half, who decided to specialize...

8PhenomenalTipstogetyourstaffingbusinessoutofthecommoditybusiness!

Neil S Lebovits, CPA, CPC, CTS

www.TheDynamicSale.Com

8PHENOMENALTIPSTOGETYOURSTAFFINGBUSINESSOUTOFTHECOMMODITYBUSINESS!

Ok.NowIwanttoaddresseverysinglestaffingor

recruiOngfirmandtheirbigproblem!Itaffectsa

majorityofyoureadingthisandthemoneythatyou

make…

Wanttotakeaguess?(ok,theOtlegaveitaway)…Well,

ifyoudon’tthenyoushould,asthebigproblemis:

Commodi&za&on!

Areyouunsureifthisaffectsyourdeskorbusiness?Hereareafewindicatorsthatit

does:

TheprospectsaskyouwhatyourfeesormarkupsareEVENBEFOREyougettoofarinto

thepresentaOon.

YourclientsmakebuyingdecisionsbycomparingpricesfromthecompeOtorsandthey

willo\eneventellyouthat.

A\erreviewingyourcompeOtor’sfeesorpricesyoudecideditmightbeagoodstrategy

toloweryourfeesormarkups.

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YourAveragefee%andyourGMfalleachyear!

Youfearthatifyouraiseyourfeesormarkupthatyouwilllosealotofbusinessand

clients.

Soundatallfamiliar?Guesswhat,myfriend,youmightaswellbeinthebusinessof

sellingporkbelliesorwheat.Heck,Ican’tevencounthowmanyOmesrecruitersor

staffingmanagerstoldmethat“we’reinacommoditybusiness”.UGGH!

So,WHATAREYOUDOINGABOUTIT?

Unlessyouhaveaplan,youwillconstantlybefacingdecreasingfeesandmarginsand

willconstantlybetryingtoputinmorehoursandworklonger…alltogetbackwhatyou

hadbefore…Then,yourealizethatallofthishardworkjustleadstosmallerandsmaller

commissions!YUCKYPOO!

So,WhatistheSOLUTIONthatthebestintheindustryaredoing?Letswalkthrough

thesesixOpssothatyoucangetbackintothestaffing&recruiOngbusinessandleave

thecommodiOestothetraders!Heck,youwillevenincreaseyourfees/rateswithout

LOSINGANYONE!!!

Here'showyoudoit...

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TIP1‐RE‐DEFINEYOURNICHENOW!

WeallknowthatourindustryhasgeneralservicefirmsandbouOqueorspecialtyfirms.

Generalfirmsstartedoffdoingeverythingforeveryoneandthenthespecialtyniche

cameintobeing.Probablyoneofthemostfamoussuccessstoriesinbuildinganiche

camefromayoungMannamedBobHalf,whodecidedtospecializehisplacementsback

inthe40’stoonlyfocusonaccounOng.Well,therestishistoryastheysay,andRobert

HalfinternaOonaldominatesinthefinance&ITmarkets.Thelessonswerelearned..The

morespecificyougetandthegreateryourspecificnetworkandknowledgebase,then

thegreateryourvalueandthusprices.

Well,wherehaveweevolvedfromthere?Wherehaveyou?WeallgetWHYthatworks

andtheextravalueitprovidestoourcustomers(andthusmarginsandfees),butwhy

diditstopsolongago?WhydoSOFEWOFUSdrilldowntoanevenfinerniche?Ask

yourselfhowmuchyouhaveevolvedsinceyoustarteddoingthis?

YoumightbecurioustoknowthatthegreatleadersofthemegaGENERALSERVICE

staffingfirmshavelearnedthattheysOllhavetospecializetocreatethevaluethatthey

needtostopbeingacommodity.TheycansOllbeageneralservicefirm,butwillreally

betheconglomeraOonofmanysubspecialists.Theyarespending100sofmillionsof

dollarstomakethishappen!ITWILLTAKETHEMALONGTIMEIFEVER!Theyaretoo

big…However,asmallerfirmcanactonthisnowandbeatthemtothepunch.Whatis

yourexcuse?

Mydadgavemesomegreatadvicegrowingup,andweallhaveourfatherlyversions.

HetoldmethatIshouldneveraimtobeajack‐of‐all‐tradesbecauseIwillbeamasterof

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none.HetoldmewhenitcametoschoolworkandotherventuresthatIsimplycan’ttry

tobeeverythingtoeveryoneorIwillsimplyendupbeingnothingtoanyone!

Howhaveyouappliedallofthistoyourbusinessordesk?

DoyouknowthatthemostsuccessfulrecruitersandsalesrepsthatIcanthinkofALL

developedaspecificexperOse?ThepeopleIknowwhoalwaysgothigherfeesthan

anyoneelsediditbecausetheyofferedsomethingdifferent!Twoofthetoprecruiters

thatcometomindaretwopeoplewhobothstartedplacingaccountants.Theyfound

themselvescaughtinahugecompeOOvelandscapechasingtheaccounOngleads,but

eachstumbledintotheirnewnichesbyaccident.JerriRemg,nowSeniorVicePresident

atTheSolomonPageGroup,gotajoborderwiththeheadofaderivaOvetradingdesk.

Shedidn’tevenknowwhatthatwasbutstartedrecruiOngandnetworkingforit.Even

thoughshedidn’tplacethejob,shehadworkedsohardatrecruiOngforitthatshe

startedtopitchthecandidates.TherestofthestorygoesthatshethenstartedtoONLY

focusontheseFinancialOperaOonsposiOons.Sheledthecompanywithproducing

almost$1MILLIONinsales,whiletheaverageproducerwasdoingperhaps$150k.The

otherstoryofDennisSalinas,nowPresidentofVioSearch,isalmostidenOcal,excepthe

landedajoborderwithamedicalinsurancecompanyandjustfocusedonjobswithin

onespecificnicheinthismedicalcommunity.Bothquicklybecameviewedasthe

expertsandgotopeopleinthatmarket.Bothearnedmoremoneythantheyever

imagined.Tothisday,bothhavefarlesscompeOOonthanthe“Generalservice”

SPECIALIST.BothgettouOlizetheirrecruitsandnetworkoverandoveragain.They

don’tworkanyharderthantherest.Theyjustworksmarterandmakesurethatevery

callthattheymakecreatesmorevalueforthesameOmeinvested.

Iamnottalkingaboutre‐creaOngthewheelhere,Iamtalkingaboutdiggingdeeperand

limiOngyourfocus.Itisascaryideatoactuallynotfocusonareaswhereyouknow

thereisbusiness,butgetreallygoodinaparOcularareaandnetworkanddevelopyour

candidateandclientbaseonlythereandyouwillmakemoremoneythanyouever

thoughtpossible.

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TIP2‐GROWYOURNICHE

Nomaperhowlongyouhavebeendoingthis,youreallydoalreadyhaveaveryvaluable

groupofcoreclients.Theyrespectwhatyouknow,theylikeyou,theytrustyou.The

alsoaren’tnearlyasfocusedonpriceasmanyothers.

Firstofall,doyouknowforSUREwhichonestheyare(besidestheobviousoneortwo

thatyouarethinkingof)?Youneedtomakesureyoutakeastepbackandreviewwhat

clientsseemsto“getit”.Then,justforthiscoregroup,makeityourMISSIONtoknowall

aboutthem.Whatexactlytheydofortheirwork,whattheydoforfun?Wherethey

socialize,whatnetworkstheybelongto,whattheirviewsontheworldare,etc.Thisis

toodaunOngofatasktodothiswithallprospectsandclients,whichiswhymanydon’t

botherusingOpslikethis.BUT,ifthegroupissmallenoughthenyouknowthatyou

MUST!

So,nowthatyouhavecomeupwithyourlist,guesswhatyoufoundout?THEYAREALL

PRETTYMUCHTHESAME!!!

Andwealsoknowthatpeopletendtohangwithpeoplewhoaresimilartothem...So,

westartwiththiscoregroupandthat’swherewefocusonthenetworking!

So.Frankly,ifyouwanttodoubleyourmarginorbillinginthenextyear,thenyou

basicallyneedtodoublethiscoregroup,bydoublingyourclientbasewiththesame

TYPESofpeople.KnowingjusttofocushereisprobablyenoughtomakeyourOme

readingthispayoff.However,nowthatyouhaveyourlistof5/10/15/20clients,goto

themandASKthemtoactuallyreferthreepossibleclientstoyou!Yes,youallknowto

networkandtoaskforreferrals,butIamtalkingaboutgemngverygranularandspecific

inhowyougoaboutthis.Don’ttakethemouttodinnerorlunchonceinawhileand

askthemtothinkofyoufortheirnextopening!!!Infact,askthemtogoouttodinner

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withyouandtobringtheotherdepartmentheadortwooranoldfriendfromtheirold

companythattheycanintroduceyouto.

ManyofyouhavelearnedthisconceptwhenitcomestorecruiOngornetworkingfor

candidates(youknow,that“A“candidatestendtohaveacircleofinfluencewithother

“A”candidates),buttoomanyofyoudon’tapplythistothemoneymakers!‐THE

CLIENTS.Dothisandyouwillfindyournewclientsarethekeepers.

TIP3‐STOPOFFERINGYOURSERVICEANDSTARTOFFERINGYOUR“EXPERIENCE”

Ok.IwillpukeifIhearanotherStarbucksexample,butIcan’tresisttheobviousanalogy.

Theyalsodiditbeperthananyoneanddiditwithacommoditywithapricingmodel

thatmostwereassuredwouldfail.Longstoryshort,youreallydon’tgothereforjust

thecoffee(sureit’sgood.ItHASTOBE),butyoulikethecolorsandthemoodandthe

feelandthechairsandthemusic…well,youliketheexperience.Thatiswhatyouare

buyingandalsowhatyoubuywhenyougotoafavoriterestaurantorfunkychainthat

costsmorethanthenormalburgerjoints,etc…

So,howdoesthishelpyoumakemoremoney?

Simplyputandnothardtodoifyouhaveaplan,isthatyouneedtomakesurethatyou

aren’tjustsellingtempsorplacementsoronsitearrangementsoroutsourcingprojects….

Theyneedtogetthis“experience”thattheywontgetelsewhere.Youhavewaytoo

manycompeOtorsthatofferthesameservice.YournewbrochuretouOnghowyouare

beperoryourpointsofdifferencejustwontmakeanyrealdifference.

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Youcandoitalotofways…So,AskyourselvesthefollowingquesOons:

DoyourVALUEaddednewslepersorarOcles/flyersthatyouuseuOlizeoutrageousor

shockingandfuncopyorheadlines?

DoyouofferFREEseminarsorclassestoyourclientstohelpthem..Showcasingwhoyou

reallyareandbeingyourself?

DoyougiveawayanyfreegoodiesoryoursignatureitemwhenyouarethereTOHELP

THEMFORFREE?Areyouperceivedasfun?

Doyoupassoutgoodies,cookiesandothernicethingsduringyourworkshop?Inshort,

doyoumakeyourworkfun?

AreyousmartwithyourmarkeOngandpromoitems?Doyoucreateeventsthatyoucan

“theme”yourself?AreyouspendingalargeporOonofyourOmeonbondingevents

insteadofcoldcalling?

Canyoudescribehowyourstyleorwayofdoingbusinessismorefunordifferentthan

therest?

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Ifyoucanttrulysay“yes”toalloftheseandmorethenyouaren’tsellinganexperience

atall.So,youarejustbacktocompeOngontheservicesofthestaffing&recruiOng

industry.Gee,thatsoundsinspiring!

TIP4‐NAMEYOUR“PROCESS”

Thegreatpioneersinmanyindustrieshavelearnedthisgreattrick‐Thatistomakesure

thatyougiveanametoeverystageofyouroffering!!

Wedon’tmeanthenormalboringphasesthatweuseforinternaltraining(“ok,Mr.

Client,Iwillbegintheresearchingphaseandthenwillmoveontothematchingphaseso

thatwecanhaveasendout.Iwillthencallyouforthebriefandprep”)….

Wemeananamethatisreallyawesomeandthatshowsinitsnametotheclientsthat

theyareabouttogetsomethingofsignificantvalue.Don’tthinkthisisjustatrick.Itis

howthemindworks!

Afewexamplescouldbe“ThecandidatecompaObilityphase”or“ThePer‐FitsoluOon”

orthe“MarketTargetsoluOon”(i.e.whereyouareshowingthatyouwillbehand

recruiOngcandidatesforthem).Hey,whynot“De‐CommodiOzaOonBootCamp”:‐)I

knowyouhaveseensomeofyourcompeOOondothis.Well,THATISBECAUSEIT

WORKS.Dothisforallstagesoftheprocess.Anyway,yougetthegist.Havefunwithit

anditwillalsobecomeakeypartofyour“experience”(andyes,youcangetsillywith

thenamesifthatistheexperienceyouaregoingfor).

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TIP5‐LEARNFROMTHELARGEMARKETINGORMANUFACTURINGCOMPANIES

AndthatistomakesurethatyoufindoutwhatworksandsystemaOzethat!Onceyou

findanapproachthatworksbestforlandingahotprospect,generaOngleads,finding

newprospects,generaOngfills,etcthenSYSTEMIZEIT!Thisisespeciallykeyforany

managersorownersreadingthis!Youcan’tjusttrainpeopleonbestpracOces!

ThepracOceneedstobeIDENTIFIEDthentheProcesscreated!Thenyoutestthe

processandfinallymakeitasystem.Thegoalistomakeyourdeskoryourfirmwork

WITHOUTYOU!Italsoensuresstabilityandgivesamuchmorestandardized

experience…ohyeah,itwillalsohelpyougetyourpriceshigher.

TIP6‐KEEPYOURFOCUSONGROWTH!

Iamconstantlyshockedathowfewpeoplereallyreachtheupperlimitsofsuccessin

ourbusiness.Itseemstobeanindustryfraughtwithmediocrity.Evenwhenthe

industry“fourminutemile”mightbebrokeninacompanyorbranch(i.e.newlevelsof

marginorpermbillings,etc),sofewpeoplefollowthenormallawsofbehaviorand

don’taccomplishattheselevels.Thereseemstobealevelofsuccesswherepeople

stopgrowing.Now,IKNOWthatyouknowwhatIamtalkingabout.Thatlevelvariesby

posiOonandofcourse,personality.Butthesyndromeisn’tanatypicalone.Iseeit

happenalloftheOmewithpermortempproducers.Theygettoalevelofsuccess(say

goingfroma$40k/yearjobtosuddenlymaking$150kinearningsperyear)andthenjust

feellikethey’vemadeit.Theyhavethenewapartmentornewcarandthetoys,etc.

Theyhavemadeitindeed..Madeittotheendoftheirsuccess!Thetopproducersinany

marketornicheneverfeellikethey’vemadeitandalwaysknowthatthereisthenext

leveltoconquer.Ourclientsconstantlychangeandconstantlyhavedifferentneeds.

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Themarketsthatwefocusonebbandflowasdoesoursupplyofcandidates,etc.The

secondthatonesitsbackandfeelsthattheyhavethebasetosustaintheirexisOng

businessbynotworkingashard,thenthebeginningoftheendhasstarted!

Howmanypeoplereadingthis“madeit”,perhapsbecauseofahandfuloflargeclients

oroneortwolargecontracts?Thenyourclientbasedwindles,butyouaresOllthe

shizzy,asyouareout‐producingeveryoneandwineveryaward.Well,wherearesomeof

younowthatyouhavelostthosetwoclients?Iwilltellyouwhat,youareinaheckofa

lotworseplacethanthosewhokepttryingtogrowandchangetheirdesks.Ifyouaren’t

ALWAYSlookingforwaysthatyoucanADDVALUEtoyourmostimportantrelaOonships

inbusinessthenyouare,atbest,onyourwaydown.

TIP7‐CREATEYOUROWNSOCIALCOMMUNITYOFSIMILARCLIENTSORCANDIDATES.

EVERYONEwantstobelongtosomethingandyoucanofferthat.Takingadvantageofthe

candidates’needstobelongduringanormallystressfulOmeforthemwillalsoputyouin

amuchbepercompeOOveposiOon!Wealsoknowthatourcandidatesveryo\encan

becomeourclientsoratleastreferustoclients.

So,giveyourclientsandcandidatestheabilitytobelongtoacertainclub.Ifyoudothis,

theoddsoflosingthemoverpricedwindle.Makeitexclusiveandmakeitassmallor

largeasyouwant.Letmegiveyousomeexamples.

Candidateside‐Whyjusthoardyour“A”candidatesandhopeyouplacethemormaybe

onlydoadecentjobofstayingintouchwiththem.Whatifyoudecidedtotakeallofthe

peopleyouratedas“1”or“A”orfromacertainindustry,etcandcreateaninvitaOon

onlyclubforthem.Ataminimum,theywillrejecttheofferbutbeflaperedandyouwill

findmanythatwilljoin.

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ClientSide‐FindclientsinsimilarposiOonsorindustriesorvolumeandinvitetheminto

yourclub.Now,I’mnotsuggesOngthishastobealargeOmecommitmentonanyone’s

partandalsonotsuggesOngtheyweretheraccoonlodgehats…Justanelitegroupthat

youhaveputtogether.YoushouldcreateseparategroupsforClientsandSeparate

groupsforprospect.Asanexample,allofyouonthistrainingcoursecouldbe

consideredpartofaclub.Beperyet,anyOmeanyonebecomesaclientofmineand

apendsalivetrainingseminar,forexample,theyareautomaOcallygivenaPremium

Membershiptomyexclusiveonlineclub.Ialsochargealotforthisfornon‐clients,butit

isagreatwaytogivesomethingbacktothosewhogivetoyou!

Easywaystobuildthiscommunity:

Createamonthlynewsleperjustforthem‐Itisagreatwaytokeepintouchandyouwill

fillitwithgreatcontentforthemthatprovidesvalue.YouwontadverOseyourbusiness

andwontmakeanypitches.Youwonthaveto!Youwillmakeitfunandfullofyourown

personality.Afuturelessonwillexposethesecretsthatinternetmarketersuseto

launchMilliondollarprojectsandhowyoucanusethesetechniqueswithyour

newsleperstobuildloyaltyforever!Hint‐Justfollowwhatyouhavebeengemngfrom

me!

Conductyourownwebinar‐Thisissocheapandeasytodo.Ifyoudon’twanttocreate

theslides,etc,thenjusthaveateleconference.Setupafrequencythatworkswithyour

audience.Youcanbringinaguestspeakerorexpertfromyourofficeoraskoneofyour

candidatesorclientstospeak.Youwillbeshockedathoweasyitistogetexpertsto

volunteer!Theywanttopromotethemselvesandyouaregivingthemafreeopportunity

todothis.Thisissosimple,sowhyaren’tmostofyoudoingthis?Somanypeople

chargeforthese,andsure,youcantoo!$49,$79...$99..Plentyofpeoplewillpay.

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However,itisalsoagreatthingtothrowinforfreetomanyofyouraudiences!Again,

seewhatIdohere.Ireallydosellthemandtheyaregreat!Peoplewillalwaysgettheir

valuefromitandyes,theyshouldbuythem..However,asyoucansee,Ialsogivethisfor

free,onceagain,tomyvaluedclients!

Membersonlyforums‐Whyisyourfirmnotcapturingallofyourclientsandgivingthem

somesortofaccesstoyouoreachother?Ifyouworkforalargecompanyandthisisout

ofyourcontrol,thenspendafewhourstodayresearchinghoweasyitisforyoutoset

upyourownforumorchatroomfor$20andnohosOngfees.Invitethesepeopleand

allowthemaskquesOons,etc…Ifyouareabusinessowneranddon’thaveseveral

forumsalreadysetup,thengetonwithitrighta\eryouaredonereadingthis.Ifyou

wanttobeevenmorestateoftheart,thensetupyourblog!Ibuiltandsetupmyown

membersonlysite.Ialsocreatedfromablogandusedverysimpleso\waretocreatea

specialplaceformyspecialpeople(doesn’tthatsoundsweet!!)

OrganizeClient&candidateevents–Someofyoudothisonyourownoryouwere

forcedtoanddiditafewOmes.Well,remember?Youlovedit…andyougotsomegreat

businessandgoodwillfromit!Youlovedthatitwasarelaxingatmosphereanditwas

funandcool.Whydon’twedothisenoughinourbusiness?Likeanything,ithastobe

partofaplanandyoursystemandyouhavetomakeithappen.Likeeveryweek,your

deskgetsfilledwithphonecallsanddistracOons...ButyouarewasOngyourOme

followinglameleadsormakingcoldcalls,whenyoushouldbebuildingyourcommunity.

TIP8‐DON’TBELIEVEWHATPEOPLETELLYOUTHECOMPETITIONISCHARGING!

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IcannotemphasizeenoughthattheinformaOonthatyouaregemngaboutwhatthe

compeOOonischargingforfeesormarkupsisWRONG!Really,itALMOSTALWAYSIS!If

youaregemngyourinformaOonfromyourclients,then,well,DUH!Youhavebeen

clientsbefore.Whatdoyousaywhenyoursalespersonasksyouwhatyouarepaying

elsewhereorwhatthelastvendorquotedyou?OFCOURSEwegivethemsomething

lower.Wewanttheirpricetobelower.Itdoesn’ttakealotofstreetsmartsforusto

figureoutthatthelowerthepricewegive,thelowerourpricelikelywillbe..So,really,

youjustcan’tlistentoit!Eveniftheyaretellingthetruth,theywilljusttellyouwhat

theyeitherWANTtopayorusuallypay!

Ifyouaregemngitfromothersourcesandthebuzzinyourofficeisthatthebigfirm

downthestreetisdoing10%feesorhasamuchlowermarkup,thenthinkagain.Ihave

provenitoverandoveragainthroughoutmycareer?HowdidIPROVEit?Simple.Every

onceinawhile,wewouldenduphiringsomeonethatactuallyworkedforthat“10%

permfirm”orworkedforthefirmwheretherewassupposedlyamuchlowermarkup.I

wasfirstexposedtothiswhenIwasworkingattheworld’slargestsearchfirmandwe

reallydidbelievethatthenumber2firminthemarket(ourbiggestcompeOtoratthe

Ome)wascharging15‐20%maxfees,whilewewereaimingfor30%(andaveraging

25%).Wealsoreallybelievedthatwewerepricingourtempbusinessveryhigh,

averagingovera70%markupconsistently.Thenumber2firm,we“KNEW”wasgiving

away50‐60%markups.Well,ifyoureadmybio,youknowthatIendedupworkingfor

thisnumber2firm.IwasshockedattwothingsthatIfound.First,theirpermfeesand

markups/marginsWERENTANYWHERENEARwhatweweretold.Infact,theywere

virtuallyidenOcaltomyoldfirm(aimingfor30%permfeeswithafloorof20%and

markupsat70%).WhatIlearnednextwasevenmoreshocking‐WhenItrainedthe

grouponhowwehavetodoabeperjobatpricing,theyalltoldmehowwewerelosing

businesstomyoldfirm,becausemyoldfirm(yes,youguessedit),weregivingawaythe

permbusinessmuchcheaperandmarkingupthetempordersmuchless.Well,LOL(and

“LOL”wasn’tevencoinedbackthen).Itwasmyfirstinsightintothephenomenon.I

haveseenitOVERandOVERandOVERagaininmanydifferentbranchesthroughout

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NorthAmericaandlatersawtheSAMETHINGoverandoveragainthroughoutthe

world.IalsosawitdisprovedOVERANDOVERagainonceweactuallyhiredthepeople

whocouldputthose“myths”torestonceandforall!

Pheww.Wellhow’sthatfor8Ops.Noneofthesearerocketscience,butonlyyoucanbe

honestwithhowmuchofthisyouputintopracOceandhowmuchyouarereally

planningtodo.Remember,ifyoudothis,yourclientswillkeepcomingbackandprice

wontbethefirstthing,byalongshot,ontheirminds.Ihopethisgaveyousomegood

foodforthought.Thewholepointofmylive“RecruiOngSystem”seminarsistobreak

thebusinessdownintoverysimpleandeasytofollow“systems”thatcanforeverchange

thewayyoudobusiness!Ifyouhavenotyetcheckedthemout,pleasedomeafavor

andtakealookhere.Ifyouhavenotyetwatchedmyfreevideoonwhyloweringprices

togetmoresalesvolumeDOESN’Twork,thenclickherenow!LoweringPricesVideo

Clickheretoaddanycommentsorfeedbackthatyoucansharewithourcommunity!

AddComments!

ThanksfortakingtheOmetoviewthis.Ifyouknowsomeonewhocouldbenefitfrom

this,pleasefeelfreetosharemyfreetrainingwiththem.

Stumbleuponthisandnotasubscriber?Doyouwanttoseeallofthefreecourseand

contentforyourself?Thenjustsignup.TheDynamicSale.Com

Asalways,CarpeDiemandSelllikethewind!

Neil

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