One interesting feature of the OP’s pitch is that he’s offering not to help the client find more/better options, but to accelerate them finding any job. It’s not clear to me what happens if the client rejects the offers OP finds, but that seems critically important.
I’d have to assume that as you say, these are clients who aren’t in-demand enough to go through recruitment agencies or headhunters, or to find a job themselves.
If he’s made $25,000 from 5 clients, then assuming he got 11.5% of each of their salaries, his clients are on average starting at around $25,000/5/.115 = $43,000/year, or around $22/hour.
Jacobian, what is the alternative to a service like the OP’s for someone in this income bracket? My sense is a temp agency, but that they’re typically placing people into jobs paying roughly minimum wage.
Those are good points. I think competition (real and potential) is always at least worth considering in any question of business, and I was surprised the OP didn’t even mention it. But yes, I can imagine situations where you operate with no relevant competition.
But this again would make me think that pricing and the story you tell a client is strictly secondary to finding these potential clients in the first place. If they were the sort of people who go out seeking help you’d have competition, so that means you have to find people who don’t advertise their need. That seems to be the main thing the author doing and the value they’re providing: finding people who need recruitment help and don’t realize it.
I think there’s a relevant question of ethics here.
If I learn that these competitors offer a product / service equal to mine or better, I’d feel obligated to change the business model or innovate my product / service in some way.
I don’t think you’re obligated to negotiate against yourself. Your pricing is already far more transparent than most industries. You’re offering a quality service for a justified price, and it seems plausible that you’re finding value where few have found it before. That’s a service worth a reward, and you’re claiming it.
I don’t see an obvious ethical issue here, personally.
I’m proposing that if I find out that there are other products in the market that offer the same value for free, I might feel like it’s an ethical issue. I don’t have strong evidence that suggests that there are products which offer the same value for free (There’s a lot of issues with recruiters e.g. incentive misalignment issues, they cater to specific people, etc.). Still learning though.
One interesting feature of the OP’s pitch is that he’s offering not to help the client find more/better options, but to accelerate them finding any job. It’s not clear to me what happens if the client rejects the offers OP finds, but that seems critically important.
I’d have to assume that as you say, these are clients who aren’t in-demand enough to go through recruitment agencies or headhunters, or to find a job themselves.
If he’s made $25,000 from 5 clients, then assuming he got 11.5% of each of their salaries, his clients are on average starting at around $25,000/5/.115 = $43,000/year, or around $22/hour.
Jacobian, what is the alternative to a service like the OP’s for someone in this income bracket? My sense is a temp agency, but that they’re typically placing people into jobs paying roughly minimum wage.
Those are good points. I think competition (real and potential) is always at least worth considering in any question of business, and I was surprised the OP didn’t even mention it. But yes, I can imagine situations where you operate with no relevant competition.
But this again would make me think that pricing and the story you tell a client is strictly secondary to finding these potential clients in the first place. If they were the sort of people who go out seeking help you’d have competition, so that means you have to find people who don’t advertise their need. That seems to be the main thing the author doing and the value they’re providing: finding people who need recruitment help and don’t realize it.
I think there’s a relevant question of ethics here.
If I learn that these competitors offer a product / service equal to mine or better, I’d feel obligated to change the business model or innovate my product / service in some way.
Still exploring that question.
I don’t think you’re obligated to negotiate against yourself. Your pricing is already far more transparent than most industries. You’re offering a quality service for a justified price, and it seems plausible that you’re finding value where few have found it before. That’s a service worth a reward, and you’re claiming it.
I don’t see an obvious ethical issue here, personally.
I’m proposing that if I find out that there are other products in the market that offer the same value for free, I might feel like it’s an ethical issue. I don’t have strong evidence that suggests that there are products which offer the same value for free (There’s a lot of issues with recruiters e.g. incentive misalignment issues, they cater to specific people, etc.). Still learning though.