Are you still interested in starting a home-based recruitment agency?

Maybe you know someone who runs a successful recruitment agency, and you're wondering how you can do the same. 

In this guide, I’ll walk you through the first steps to getting started.

1. Essential Equipment

Starting a recruiting business is highly affordable. 

You only need:

• A cell phone
• A laptop or PC

2. Choosing Your Niche

Selecting the right industry is key to your success. 

Here are three high-demand fields to consider:

1. Medical Recruiting

• High demand post-COVID
• Strong need for skilled professionals

2. IT Recruiting

• Consistently profitable
• Specialising in a micro-niche (e.g., cybersecurity) can be highly lucrative

3. Warehouse & Light Industrial

• Booming industry due to supply chain demands
• High demand for skilled workers

3. Understanding Billing Structures

There are several ways to charge clients as a recruiter. 

Here are the main models:

1. Direct Hire (Traditional Headhunting)

• Charge a fee based on a percentage of the candidate’s salary (typically 20-30%)
• Example: A 20% fee on a £100K salary = £20,000 payment

2. Contract Staffing (Residual Income Model)

• You place employees on contract assignments and earn an hourly margin
• Example: If a client pays £40/hour and you pay the candidate £20/hour, you earn a £20/hour profit
• Provides ongoing income and is highly scalable

3. Engaged Search (Best for Beginners)

• Similar to direct hire but with an upfront engagement fee (e.g., £2,000–£3,000)
• Ensures client commitment and increases your success rate

4. Retained Search (High-Level Executive Recruiting)

• Used for C-level and VP roles
• Fees range from £50,000 to £100,000+ per placement
• Payments are structured as a third upfront, a third mid-search, and a third upon hire

4. How to Get Clients & Candidates

Most beginners make the mistake of focusing only on clients. Instead, build your candidate pipeline first.

Here’s why:

• Candidates provide insider knowledge about which companies are hiring and which hiring managers use recruiters
• It’s easier to build relationships with candidates than with companies initially
• Strong candidate pipelines lead to faster placements and higher earnings

Daily Action Plan

• Have 5–10 quality conversations daily with passive job seekers
• Avoid job boards like Indeed or CareerBuilder—focus on direct outreach via LinkedIn
• Conduct Zoom calls, introduce yourself, and offer to help them in the future
• Build a strong CRM of potential candidates

Final Thoughts

Starting a recruiting business is an excellent way to earn a high income with low startup costs. 

Focus on building your candidate network, choosing a profitable niche, and selecting the right billing model. 

With consistency, you can grow your business into a scalable and successful venture.

Get Hands-On Training from a Recruitment Industry Expert

Starting a recruitment agency is exciting, but having the right guidance is crucial.

Get one-on-one training from an expert with 40+ years of experience in the recruitment industry.

Ready to launch your agency? Book your strategy call today!

Watch A 15-Minute Video Presentation

If earning a substantial monthly income, and working from the comfort of your home running a recruitment agency appeals to you...

...then the next step is to click on the link above to watch a short 15-minute video presentation covering three key topics:

Why Now’s a perfect time to start a home-based recruitment agency…

Why It’s is virtually impossible for your recruitment agency to fail…

And how you can generate an additional £10,000 to £15,000 per month…

​And much, much more….

I look forward to hearing from you.

Joe Davis FREC

CEO & Founder

0800 622 6877