If you enjoy working with people and have a decent grasp of basic employment and human resources concepts, a part-time job as a recruiter may be right for you. Part-time recruiting is an excellent way to make some serious money. Recruiters who are good at what they do can rake in significant commissions. You can’t expect to get to that point without putting in your dues, though. By getting a little training and experience, choosing a specific niche or industry and making savvy use of social networking websites, you can embark on a successful career as a freelance recruiter.

What is a Freelance Recruiter?

Especially during tough economic times, when unemployment rates are exceptionally high, employers have a hard time sorting qualified candidates from unqualified candidates. Employee searches can be extremely time-consuming and frustrating; moreover, they can cost employers a whole lot of money. When a highly skilled position needs to be filled immediately, it’s often in an employer’s best interest to hire a recruiter. The ideal recruiter will have targeted experience in the employer’s field or industry; he’ll also have a lot of connections – and know how to use them. In exchange for finding employers highly qualified candidates, recruiters get paid on contingency; sometimes, employers put recruiters on retainer, too.

Getting Started

Technically, you don’t need a degree to be a recruiter. That being said, having a business or human resources degree is extremely helpful. If you don’t have a degree, experience in HR or business settings can help. You need to know the basic ins and outs of the hiring processes of companies in your targeted industry. If you don’t, prospective clients will be able to tell – and that doesn’t inspire a whole lot of confidence. If nothing else, take a few community college courses on human resources practices.

Choosing an Industry

Although it’s possible to be a “one size fits all” recruiter, it’s usually best to specialize in a specific industry. By focusing on one niche market, you’ll be able to grow and develop a good reputation more easily. Hiring practices from one industry to the next; the qualifications for a marketing professional are going to be a lot different than for those of an executive. By specializing in the recruitment of candidates with specific specialties – like accountants or advertising professionals – you’ll be able to distinguish yourself more easily.

Building a Network

Networking is a critical part of just about any job these days. It is especially important for freelance recruiters. You need to develop a decent number of clients in order to get the ball rolling. Again, developing a topnotch reputation in one industry is a great way to do so. From time to time, you may need to engage in a little cold-calling in order to drum up new prospects. You should also join associations that relate to your field of interest – and be actively involved with them. That way, you’ll have a ready-made group of prospective clients in your local community.

Setting Fees and Commissions

There are two basic ways in which a freelance recruiter typically gets paid: on a contingency basis or by being retained by a client. Most often, clients choose to go the contingency route. In such a scenario, you would be paid on a case-by-case basis. When a candidate that you’ve found is hired by a client, you will receive a commission. Commissions vary but typically fall into the 20% to 33% range of a new hire’s first year salary. Rack up a few of those commission payments per month and you will have a great side income.

If you are put on retainer by a client, you will be paid on an upfront basis. In that situation, the client may pay you up to 50% of a new employee’s typical first year salary at the beginning of a search. That fee will cover the cost of the entire search; therefore, it’s in your best interest to find an ideal and employable candidate as quickly as possible.

Finding Candidates

Finally, freelance recruiters need to know where to go to find great candidates. It pays to be plugged into the grapevine if you want to be able to find the best candidates for your clients. These days, social networking sites are the quickest and most efficient way to go. LinkedIn and Twitter, in particular, are great ways to spread the word about a search. Such sites can also help you find others within the industry who may be able to help you out at some point.

You don’t need any special equipment or office space to be a part-time recruiter. If you’d like to give it a shot, you have nothing to lose. Recruiting is an excellent way to make great money on the side, without having to sacrifice a whole lot of time.