Invited by an INSEAD buddy the other week to join Blue Chip Expert, a just-launched high-level recruiting site which has added a new twist to the job-hunting experience. Designed for consultants to enter their expertise and availability, and then used by recruiters to find the right consultants for temporary or temp-to-hire projects. The challenge with “just another resume site” is, how to get enough good prospects in the database, and then, how to make recruiters use it?
Well, BCE might have figured it out: referral fees. The job market for high-level hires is tight right now, especially in LA, and every employer offers “bounties”, typically $500-$5,000, to existing employees who refer friends who eventually get hired. Saves the company lots of more expensive recruiting fees and ideally builds a stable of employees who like to work with each other. Referral fees work.
Blue Chip Expert have taken the next step: Pay out referral fees to anyone who gets their friends to sign up in BCE, who then gets hired for a job or project. Not only that, but if I refer a friend, and that person signs up another friend who gets hired, I also get a small chunk of the fee. But wait, there’s more! If a recruiter recommends their colleagues to also hire from the database of candidates, then that recruiter gets a chunk of the fee. Cash incentives in both directions.
Basically, this is multi-level marketing (MLM) applied to job recruiting (see Wikipedia on MLM), and similar to Amway, Synergy, etc. What an impressive incentive to sign up your friends. Even if you never get a project from the system, as long as your friends do, you make money. In best Internet affiliate style, you can log in to see how many of your friends have signed up and how much money you’re making.
The fees are paid by the hiring organization and do not reduce what a consultant receives, as far as I can tell. Given that a typical organization pays 30-35% of a new hire’s annual compensation as a recruiter fee, there is a lot of money to be split up and shared. These guys work with BlueSteps (run by the Association of Executive Search Consultants www.aesc.org), so I believe the operation is legit – but no promises.
Selfish Disclosure: Please click on this link http://www.bluechipexpert.com/invite?code=kpw3z and sign yourself up, so that you register with my Invitation Code kpw3z. I need all the revenue I can get, and I’m sure you’re a better consultant than I am!