• Conversation Volume Metrics:

  • New firms need 15-20 conversations per day to succeed
  • Breakdown: 1-2 business development conversations + 12-14 candidate conversations
  • This volume is required for critical mass/momentum
  • Need to track and measure conversation metrics daily

• Modern Communication Strategy:

  • Must use multiple technologies/channels (LinkedIn, email, voicemail, social media, video)
  • Need structured cadence across all channels
  • Focus on candidate/client preferred communication methods
  • Volume of outreach needed has increased significantly

• Sales Development Representative (SDR) Model:

  • Dedicated role for appointment setting and outreach
  • Cost effective ($8-12/hour, often overseas)
  • Handles high-volume, lower-value tasks
  • Frees up recruiters for high-value conversations
  • Requires proper hiring, training and management

• Search Firm Valuation Framework:

  • Typically 3-5x EBITDA for permanent placement firms
  • Higher multiples (6-7x) for larger firms
  • “Bus test” - firm value drops if too dependent on owner
  • Recurring revenue (like contract staffing) increases value
  • Need 5-10 year planning horizon for optimal exit

• Growth Success Factors:

  • Need market specialization/niche focus
  • Must separate high-value ($3000/hr) vs low-value ($10/hr) activities
  • Required volume of activity/energy level
  • Proper business models and role specialization
  • Continuous learning and improvement mindset

• Performance Analytics:

  • Track key ratios: job order to placement, send-outs to placement
  • Monitor marketing presentation to search assignment conversion
  • Measure recruiting presentation to candidate interest ratio
  • Focus on per desk average (PDA) for profitability
  • Use structured dashboard systems to track metrics

• Gap Selling Methodology:

  • Understand current state
  • Define desired future state
  • Identify gaps/barriers
  • Present solutions to bridge gaps
  • Focus on client business problems vs capabilities

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