Part of an executive search consultant's job is to find
prospects who are happy employees simply looking to further their
careers. But maybe if those on the happy list knew more about the
jobs of these "headhunters," they would consider dumping
their gigs for theirs.
That is, if this type of career sounds good: working out of your
home, setting your own hours, being your own boss with practically
no overhead or start-up costs, helping others become more
successful, and enjoying a cozy starting salary of more than
$100,000 a year. Appealing? Nah.
Executive search consulting has become one of the most
solid—and lucrative—start-up businesses you could own,
whether you've got a background in HR, have worked for
placement agencies, or have no experience at all and thought
headhunting was only for bail bondsmen. Odds are, you've
already got all the equipment it takes to get started: that is, a
phone, a computer and e-mail. "No one even takes faxes
anymore," says David Lee, a 30-year-old search consultant in
New York City. "You don't even need paper."
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Like many search consultants, Lee started his one-man show,
EZDNYC Inc.,
after leaving a recruiting job. Lee takes as clients companies that
are looking for a certain type of applicant, and when they find
someone who fits the profile, it's payday. And with a little
patience and a lot of hard work, it can be a nice one, too.
Typically, a search consultant will make anywhere from 20 to 33
percent of the employee's first year's salary. And with no
overhead (outside of a measly phone bill), the money's for
keeps.
According to The Fordyce Letter, the industry's most
widely read newsletter, the average fee per placement last year was
more than $15,000, and the average annual billable income for
executive search consultants was $197,000. Like many in the field,
Lee, who founded his company in January 2000, says he cruised past
the industry standard first year's salary of $100,000.
According to Michael Bloch, a search consultant in Rochester,
New York, the amount of money made is proportional to the amount of
work done. "I don't advertise at all; everything's
over the phone," Bloch says. "Honestly, that's about
all you have to have equipmentwise. But the key is to have the
knowledge of how to do it."
Bloch says being well-organized and having an interest in
helping others succeed are a must, as are constant calls to
clients, prospects and references. He warns, however, that in
addition to learning to work on your own, it's also important
to know how to be a salesperson and budget your money. It could be
a long time between paydays.
Paul Hawkinson, publisher of The Fordyce Letter, concurs
with Bloch. "The failure rate is horrendous in this
business," he says. "It looks easier than it is. Some
people are not sales personalities, and this is a sales job no
matter how you look at it. It's an easy-entry business, and
most easy-entry businesses are easy-exit businesses."
According to The Fordyce Letter, engineering and
technical positions are the most popular among recruiters. Many
search consultants stick to what they know, concentrating on their
own specialties.
Lisa Olson, 29-year-old owner of Mio Creative
Solutions, works from her home in Dallas and focuses on the
marketing and advertising fields. Though she started from scratch
like most other homebased search consultants, she had an edge:
After one year working for a recruiting firm, her department was
eliminated, and she was allowed to take her clients with her.
Instead of moving those clients to another agency, she decided to
put her five years of recruiting experience to the test and gained
them as her first clients. Now, two months later, she's well in
the black. "I felt I owed it to myself to give it a
shot," she says. "Taking that actual risk is scary, but
it just kind of happened for me."
You've Got What It
Takes
Don't worry about overhead. Odds are, you've got the right
tools for the job at home already—and most of them you
won't even need:
Multiple-line phone with headset
Computer with
Internet access and e-mail
Voice mail
Printer
Fax machine
(rarely used)
Tape
recorder
A desk, filing
cabinet and organizational skills—always used