How do you manage revenue consistency with your recruiters? If you are a solo operator, I would say the question then becomes, how do you manage revenue and consistency with yourself?
Bill Gibbens and I recently had a group call with our clients regarding predictable revenue. Bill has been a client since 2008 and built a multimillion-dollar recruiting firm. He has created so much leverage he has time to work with our clients and continues to grow his firm.
For those of you who have been around for a while, I might sound like a broken record. Still, the number one thing you have to do is attach desire to your revenue goal. When you come up with a target revenue number, either as a solo, you say I want to bill $500,000, or as an office, I want to have a $1 million office, a $1.5 million office, a $2 million office, all of those are worthy goals.
Let’s say you’re looking to create a $200,000 increase in revenue. Conservatively, your net, after taxes, is $125,000 of that. What are you going to do with it? Where does it go, exactly, specifically, and precisely?
I want you to write that question down.
Do you know that for yourself? The revenue number you set for 2022, do you know, net of tax, what is that revenue increase? Because most people want an increase over the previous year.
- Do you know how much you will keep after taxes and expenses?
- Do you know where you have it allocated?
If you don’t know and haven’t hit your goals for several years, that is probably a core reason. The new revenue number is exciting. But when I drill down with people, where will that revenue go?
I ask them that question.
How much, ballpark, do you think in expenses?
How much, ballpark, do you think in taxes?
Let’s use that same $200,000 increase; you will probably keep $125,000 to $130,000 net of everything.
Suppose you consistently miss the mark on your revenue goals, but you’re relatively comfortable. In that case, you probably paid your bills, took some vacations, and maybe even put some money away. That is why, aspirationally, if you do not create an emotional attachment to that number and develop images around what it will provide you, you’ll never have the motivation to complete the daily activities that will get you to your goal.
Is that being debt-free?
What does that mean for you?
What would it allow for you?
How would you feel in your body if you had no more debt?
Is it financing your children’s education, saving for a child’s wedding, a bigger house, or a nicer vehicle? There is no judgment on what it needs to be, and you don’t have to spend it on stuff. It could be financial security.
People tell me that a lot. You know, Mike, I do not have any debt, but I do not have a lot put away either, and I want a secure retirement. That’s a phenomenal goal. Define for me secure retirement. They will give me platitudes like I do not want to worry about money.
What does not worrying about money look like? Because there is a specific number where you are not worrying about money. Generally, I advise people to sit with a financial advisor and say, okay, you want to have $100,000 a year in income at retirement. I am just making that up. A rule of thumb is if you do not want to touch your savings, you can take out 4% a year and never drain your assets. Right. Alright, so you want $100,000 a year. That is $2.5 million in savings. Everything has a formula. Everything has a destination.
What I am coaching you to do is if you have inconsistent revenue, you probably have inconsistent activity. The way to make your activity consistent is to be motivated every day to do what you are supposed to do to be big billing recruiters. Get connected to desire and start by taking an inventorying of what you want.
What does financial freedom look like for you? Are you debt-free? What is the exact, specific, and precise amount of debt that must be paid off? It does not have to be paid off in a month or even a year, but you have a plan.
Then you say, okay, Mike, if I billed an extra $200,000 and kept $125,000, I have $50,000 in debt I want to get rid of.
Okay. We have $75,000 left.
I want to take a great vacation, a couple of vacations. I am going luxury. I am going to go $20,000.
I want to start putting away money for retirement. I sat down with a planner, and we came up with $30,000 to $40,000 per year.
Great, now we are at about $110,000. I am connecting every dollar I bill to what I want today and in the future.
Firm owners, use this exact technique to pave the road to consistent revenue for both your firm and your recruiters. You’re never micromanaging them when you are coaching them to achieve the goals they set for themselves.
Next week, we’ll cover exactly how to get there. (Hint… it’s metrics).
Don’t want to wait? Download our free Recruiter GPS so you can Map out a plan to HIT and EXCEED targets next year – without working longer or harder hours.
See how TRU clients at Webster & Webster Associates transitioned from self-employed recruiters to growing a real recruiting business. Now, they focus on strategy, processes, and growth with the mindset and metrics tools from team TRU.
P.S. Whenever you’re ready… here are 4 ways I can help you grow your recruitment business:
1. Grab a free copy of my Retainer Blueprint
It’s the exact, step-by-step process of getting clients to give you money upfront. https://get.therecruiteru.com/lm
2. Join the Recruiter Think Tank and connect with firm owners who are scaling too It’s our Facebook community where smart recruiters learn to make more money and get more freedom. https://www.facebook.com/groups/there…
3. Join me at our next event
3x a year, I run a 3-day virtual intensive, sharing the 9 key areas that drive a 7-figure search firm. Click here to check out the dates of our upcoming event: https://get.therecruiteru.com/emerge
4. Work with me and my team privately
And if you ever want to get some 1:1 help, we can jump on the phone for a quick call, and brainstorm how to get you more leads, more placements, and more time. https://get.therecruiteru.com/scale-now
Latest from TRU
- How to Re-engage Former Clients and Win New Ones in Recruitment
- Struggling, Stuck in Neutral, or Starting Over?
- Strategies for Attracting New Clients and Minimizing Candidate Fall Off
- How to Keep Candidates Committed During Long Hiring Gaps
- Strategies for Recruiter Success and Immediate Impact for New Hires