|Basically, I talked with a recruiter who works for a company that only offers permanent placements. So, he's kinda frustrated that he has to pass up on the contract and contract-to-hire positions he learns about through his contacts. So, he needs a company to front that part of the business and we split the profits.
I'l have some loose control over this, but he'll really be driving the business more so to speak. I've set up some processes and tools to use so that I can start maintaining a contact list, etc., but other than providing money and kicking some contacts his way, I'm pretty much leaving it up to him. I do plan to screen the candidates technically to protect the brand (as much as this can, anyhow). Eventually, I'd like to hire someone in house and perhaps have him head up this division, but that's getting way ahead of myself.
This kind of makes me more like a financier, so I'm trying to determine the default rates for people who use contractors. Obviously, I'll learn more about the individual clients as I go along, but I'm trying to figure out if there's a 5% profit margin and the default rate is 7%, then over time, I'll lose 2% rather than make 5%. I'm trying to figure out where to draw the line for each credit rating on whether I accept the deal or head for the hills.
Maybe I am looking at this wrong, but it seemed to make sense.
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