Reclaim Control: How to Become The Finding & Identifying Authority

May 27, 2026 | Client Fee Issues

QUESTION: Mike, we have been given the opportunity with a company to get active on the openings over the next year. I had proposed 22.5% to work on them. Their counterproposal was 20%. They were for sales positions. They would pay 65% of the fee 30 days after the start, and the remaining balance, 35%, would be paid when the hire hit $250,000 in revenue. How can I operate with these terms as the finding & identifying authority?

The Role of the Finding & Identifying Authority in Evaluating Proposals

Personally, I think it is crap. I want to start with that, my personal gut feeling. However, I always respect every business owner’s right to choose what they will work on. Then, the dialogue, which is what I am going to share with you, is about how you go back to them and how you try to change that.

I would have a conversation with them. “You are asking me to take 35% of the risk, and simultaneously, by asking me to increase my risk, you are asking me to lower my fee. If you ask me to increase it, I can argue that I should raise my fee to 26% or 27%. I am not going to do that right now.”

“On the flip side, you are holding me accountable for them hitting $250,000 in revenue when I have absolutely no means from a sales management perspective, from a leadership perspective, from even a hiring perspective, to ensure that happens, meaning I am not their sales manager, and I am not the hiring authority.”

Facing Increased Risk and Lower Fees As The Finding & Identifying Authority

“Are you permitting me to hire the people I think would be best for the role? Of course, you are not. I might think that in this city, Candidate A is better than Candidate B, and the hiring manager says, no, I want to hire Candidate B. I would be held accountable for their decision financially. Can you see that, Mr. or Ms. Vice President, or Mr. or Ms. Chief Financial Officer?”

We have all been in situations where companies want us to take on the risk for their decision. “We are the finding & identifying authority. You are the hiring authority. If you want a six-month money-back guarantee to pay the second part of the fee based on a candidate’s accomplishments, will you allow me to make the final selection? As part of that process, will you allow me to coach and hold them accountable? And, of course, that will be an additional fee outside the locus of what we are talking about.”

“No. Of course, you are not going to do that. Those are rhetorical questions, Mr. or Ms. Employer. But can you see how you are financially burdening me as if I am responsible for that? What do you need to put in place as a company to ensure they get the $250,000 in revenue? What are the things we can do together, if in your experience in hiring and the profile that you have hired that has worked out and not worked out so that I can drill down into making sure we are screening to the best of our ability the things that predict success in sales in your company?”

Clarifying Terms as the Finding & Identifying Authority in Recruiting

Then, after all of this conversation, I instructed him to get clarity and go: “Look, if this is what you want to do, what I would suggest if you want to use four recruiters is – I am not interested in it on all these terms being one of four people, meaning I have a 25% success rate specifically. I cannot commit to digging deep and talking to the number of candidates I need to talk to. What about you having four recruiters and then assigning each of us? If you open up five positions at the beginning, you give me one, you give one to the other recruiters, and you give one assignment each.”

When I was new as a recruiter, I would buy that logic. It’s almost like companies would say, “You are not willing to guarantee your work.” That is what that 35% holdback is.

Separating The Finding & Identifying Authority From Candidate Performance

“My work is to serve as the finding & identifying authority. Your work is leading and managing. If I send you somebody with tremendous sales success who stayed with their employers for two, three, and four years on average, how is it my responsibility if they flame out with you in 90 days’ work and do not hit $250,000? What would I have been able to do to predict that in advance?”

The companies cannot predict that. They have no answer.

“If I send you a candidate, and you hire him, and that person has changed job every six months for the last two years, shame on me. If I send you a candidate that has a track record and they fail with you, how is that my fault? Sometimes, there is not a meeting of the minds. Again, I am unsure how I will be held accountable for that. I am then held responsible for a lapse in management and leadership at your company.”

“I am saying that not having worked with you in the past, but if somebody stays and has a track record of staying and producing in all of their companies and leaves quickly with you, help me understand how that is my fault.”

Those are the arguments.

Managing Client Expectations as the Finding & Identifying Authority

After explaining everything, he asked, “Mike, would you work it?”

I’m like, “No!”

Here is what we know. We have our clients measuring metrics. Clients are getting job orders. It is harder. They are getting searches. It is harder. It is harder. But instead of talking to 10 or 12 hiring managers to get a search, statistically, they are up to 15 or 17, so it would be like a 20% to 30% bump.

The challenge is that most people get used to the incoming business and do not have a slowdown strategy. Based on my experience with companies that offer those proposals, I told him that they never turn into big-dollar clients. The hiring process is likely clunky. They are probably overly picky. It is like a seesaw. The worse the terms, the less the amount of fun, realistic-ness and things like that, it is working with that client.

There was one time in front of a group I asked, “Who has experienced that when you work on terms where you feel like you have compromised, not in one or two areas, but in many areas, how many of you feel like those have been the most complex searches you have ever had to fill?”

Like the whole room raised their hands. I go, “That is what you are up against.”

P.S. Whenever you’re ready… here are 4 ways I can help you grow your recruitment business:

1. Get clear on what actually drives your revenue: If you’re not sure what needs to happen each week to hit your number, the Recruiter GPS gives you a simple way to stay on track so you’re not guessing day to day. https://go.therecruiteru.com/recruitergps

2. Join the Recruiter Think Tank: 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. Learn how to build a more predictable recruiting business: If you’re ready to go deeper, this masterclass walks through the systems and structure behind how top recruiters create consistent billings and momentum. https://go.therecruiteru.com/masterclass

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. http://go.therecruiteru.com/audit

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