You may be questioning why you need to recruit an agent when you can simply hire one. After all, they are relatively easy to find, right? Well, let’s take a look at what you need to know about recruiting an agent so you can make the right decision for your business.
The Differences in Recruiting and Hiring Agents
There are significant differences between recruiting and hiring agents. A few of these differences include the followings. First, you are allowed to interview multiple agents before settling on one. Second, when you recruit an agent, you are agreeing to work with them on a contractual basis. Finally, because you are recruiting an agent, you are agreeing to pay them a finder’s fee.
The Importance of Researching Potential Agents
One of the most important things you need to do before you begin any sort of recruiting process is to do extensive research. This is especially important if you are just starting out or if this is the first time you’ve ever tried to work with an agent. You need to make sure they are a good fit for your business and that they are familiar with your industry. There are many pitfalls that you can fall into if you don’t do your due diligence before recruiting someone. Ensure that you are taking the time to find the best possible match for your needs.
Deciding Whether to Hire or Recruit An Agent
Once you’ve identified and researched a few qualified candidates, it’s time to make a decision. Do you want to hire an agent or do you want to go through the trouble of recruiting one? There are several benefits to hiring an agent, but if your goal is to simply find a competent salesperson, you may want to consider recruiting instead.
Contractual vs. Employment-Based Agreements
Every business relationship, including that with an agent, is governed by contract. Before you can begin working with someone, you need to establish the terms of the agreement. One of the first things you will want to do is to create a written contract. This contract will define the scope of the relationship, including the commission rate you are willing to pay, and will establish the terms under which the agent will work. When establishing these terms, make sure you discuss what happens if the commission rate you are offering is not acceptable to the agent. You may also want to consider increasing your commission rate if the agent agrees to an employment-based contract.
Finder’s Fees
A common mistake business owners make when trying to hire an agent is not understanding the scope of the contract. Many times, the owner will simply want to hire someone and not go through the process of establishing a written agreement. While this may seem like a simple solution, it can cause serious problems. A written agreement is essential because it provides clarity about the terms of the relationship. Establishing a finder’s fee, also known as a finder’s commission, is a good way to ensure that your agent understands what to expect. Even if you don’t want to go through the process of establishing a formal agency relationship, at least have an open conversation with your agent about what their role will be and how much you are willing to pay.
Client Care
An agent’s relationship with their clients is governed by a fiduciary duty. This is a special duty that requires agents to act in the best interests of their clients. In short, if you are paying for their services, they have an obligation to make sure your interests are taken care of first. Many times, business owners will simply want to hire an agent, not thinking about what their obligations are or what they need to do to make sure the agent is taken care of. It is an important responsibility and one that you need to think about before entering into any sort of business relationship.
Respect For Privacy
Every agent, whether you choose to hire them or choose to go through the process of recruiting one, will require some level of personal information from you. This includes things like your email address and a contact number. Ensure that you are comfortable providing this information and that you understand what you are giving up by doing so. Even if you think you’ll never need these details, it’s better to be safe than sorry.
Knowing what to look for and how to negotiate with an agent can help you find the best possible fit for your business. If you are wondering what to expect or whether or not to go through with a contract, talking to an experienced legal counsel may be a good idea. They can help you find the best possible solution for your particular situation and, in so doing, bring legal clarity to your business.