A career as an agency recruiter offers a fulfilling path with life-changing earning potential and rapid advancement. The rush of placing a candidate in their dream job is unmatched – it's a euphoric feeling that validates all your hard work and dedication – making all the coffees, sleepless nights, and moments of being ghosted finally feel like they were worth it. 

Despite its initial appeal, many recruiters find themselves wanting to leave their agency after a short time. Industry reports show that the recruitment industry has one of the highest employee turnover rates out of any sector with a staggering 43%.

So, if you’re a recruiter who’s pondering your next move, you might want to consider pivoting to a freelance recruiter. 

Let’s dive into the world of a freelance recruiter a little deeper. 

Freelance recruiter overview

The majority of recruiters start working at a recruitment agency. Here they get a chance to learn the ropes and build a client and candidate database. 

Many will start as a trainee or junior recruitment consultant and work their way up to become a senior manager.

After that, some choose to become a partner or director in an agency or start one themselves. 

More recently, however, there’s been a rise in fancy new tech and AI tools that bring down the costs for recruiters, which has led many to go freelance.  

Freelance recruiting vs agency recruiting

Freelancing offers the freedom and potential for high rewards that agency work often lacks.

Working at an agency

Pros: Steady paycheck, comprehensive benefits, office resources, legacy contracts, tools & software, and a structured environment.

Cons: Fixed schedules, limited niche choice, potential micromanagement, and a corporate culture.

Freelance recruiting

Pros: Flexibility, autonomy, the potential for 2-3x higher earnings, no corporate culture, and the ability to choose your own niche and make your own business decisions.

Cons: Initial unstable income, lack of benefits, need for self-discipline, and the responsibility of building your own network and infrastructure.

If you're drawn to the idea of freelancing, keep reading.

Becoming a freelance recruiter step-by-step

Becoming a freelance recruiter is simple, but there are a few things you should consider when starting your freelance business. These are:

1. Get registered

Navigating the legal maze can be a pain, but it's a necessary evil for any freelancer. Figure out if you need to register as a sole trader or form an LLC. If you’re in the United States, you must file anything you make over $400 in your tax returns as a sole trader. Research your local government's guidelines to make sure you’re not breaking any rules. And while you’re at it, consider using accounting software like Xero or QuickBooks to manage your finances. 

Visit the Small Business Administration website if you’re unsure about any of the legal stuff.

2. Choose your niche

Choosing your niche in recruitment starts with introspection. Delve into industries that you’re familiar with, excite you, and offer high earning potential – or a median of the three. 

Consider niching within a niche, focusing on a specific sub-segment. For example, instead of SaaS, consider AI and Machine Learning or Fintech to be more specific.

It’s much more appealing from a client perspective to see that you’re a specialist in connecting top Machine Learning engineers with the best Robotics companies in the Bay Area compared to just being a Tech Recruiter.

Ask yourself these questions to get a better understanding:

• How deep can I dive into this industry?

• How well do I understand the job roles of the candidates

• Is the market flooded with other recruiters, or can I carve out a niche?

• Can I sustain a career in this field long-term?

3. Select the right tools

Your software is arguably the backbone to your recruiting business. You need to deploy the best tools that will automate your work, manage client relationships and keep track of your data. 

Here’s what your tech stack would usually look like. 

Customer Relationship Management (CRM)

A CRM tool is an invaluable asset for recruiters. It helps you:

• Manage your client and candidate data

• Create emails and business development campaigns

• Track your workflow and gain valuable analysis

The best CRMs for freelance recruiters include JobAdder, Recruiterflow, and Recruit CRM.

Applicant Tracking System (ATS)

Similar to a CRM, an ATS manages and tracks the hiring process whereas a CRM is more tailored to the client management and business development side of recruiting.

An ATS performs the following tasks:

• Parsing resumes into your database

• Scheduling interviews

• Tracking the overall progress of a candidate

Both systems are similar but differ in the fact that a CRM is geared toward managing clients and an ATS is all about managing candidates and the hiring process.

Some of the best ATS systems are Bullhorn, Teamtailor, and Lever.

Juicebox AI

In a past life, this would be the section where we included LinkedIn Recruiter, however, there’s a new platform that is changing the recruitment game: Juicebox AI. Juicebox AI (PeopleGPT) is a powerful platform that revolutionizes the way recruiters source and engage with top talent. Powered by advanced artificial intelligence, Juicebox can help you find the perfect candidates for your roles in an instant.

It is a must-have for the modern recruiter and perfect for freelancers as it is significantly more advanced than LinkedIn Recruiter at a fraction of the price. 

Key features and benefits include:

• AI-Powered talent search: Juicebox's search engine leverages AI to understand your specific requirements and find highly relevant candidates from a vast pool of talent on the web.

• Semantic natural language queries: Use simple language to describe your ideal candidate, and Juicebox will understand your intent and deliver precise results.

• Diverse data sources: Juicebox searches across multiple data sources, leaving no stone unturned to ensure you have access to a wide range of potential candidates.

• Time-saving automation: Automate tasks like candidate sourcing, outreach, and scheduling, freeing up your time to focus on building relationships and closing deals.

• Advanced candidate engagement: Juicebox helps you personalize your outreach and build stronger connections with potential candidates.

A real game-changer. Try for free

Miscellaneous

A well-designed website is crucial for showcasing your expertise and attracting clients. Consider using platforms like WordPress, Squarespace, or GoDaddy to create a professional online presence, or better yet, hire someone to build one for you.

Also don’t forget any legal stuff like:

• Tax and accounting software 

• A privacy policy

• Terms of business

4. Build your social profile

LinkedIn will be your predominant source of attracting clients and building your personal brand as a recruiter. 

Create a captivating profile with a professional headshot, banner, and a slogan like I help connect {Insert candidates’ job role} with top {Insert ideal client industry}.

Use your 100 connections per week (20 per day) limit to add hiring managers in your niche. Then move onto:

Like & Comment: Like 15 relevant posts and comment on an additional 15 per day to boost your engagement.

Post 3 times a week: Ensure you’re posting content 3 times a week to boost organic reach within the algorithm. The best time to post is around 8am.

Write articles: Writing LinkedIn articles (once or twice a month) can help boost your presence.

5. Build your outbound network

Apart from marketing yourself on LinkedIn, you can do a ton of other things to grow your network, like:

• Attending networking events

• Going on/creating a podcast

• Going to trade shows

• Hosting office hours

• Leveraging creating content on TikTok and Instagram

These can help you grow your network and help you become a thought leader in your industry.

Also keep in contact with candidates, even if they’re not actively looking for a job. They’ll remember you when they are.

6. Incorporate AI

AI is taking over the world, and recruitment is no exception. If you want to stay ahead of the curve, you need to embrace this techie overlord. From AI-powered ATSs to chatbots that can interview candidates for you, these tools can save you time, energy, and maybe even your sanity.

Here are a few things you should use AI to do in your recruiting process:

• Sourcing candidates

• Drafting business development ‌emails for clients

• Personalizing outbound campaigns

FAQs

Can you describe the typical job responsibilities of a freelance recruiter?

As a freelance recruiter, you'll wear many hats. You'll be responsible for finding and placing top talent, building strong relationships with clients, and managing your business operations. From sourcing candidates and conducting interviews to negotiating offers and providing excellent customer service, you'll play a crucial role in connecting people with their dream jobs. 

What should be included in an effective freelance recruiter portfolio?

Include examples of successful placements and any specialized recruiting strategies you've implemented. Highlight testimonials and metrics showcasing your impact. A well-crafted portfolio gives potential clients confidence in your skills.

What tools should I use as a freelance recruiter?

Popular tools for freelancers include: 

Candidate sourcing tools

• Juicebox AI: An AI-powered platform that revolutionizes talent sourcing and engagement.

ATS

• Teamtailor: A cloud-based ATS with a focus on candidate experience and automation.

• Bullhorn: A comprehensive ATS solution that offers a wide range of features and integrations.

CRM

• JobAdder: A CRM specifically designed for recruiters, offering features like candidate tracking, client management, and reporting.

• Recruit CRM: A cloud-based CRM solution that helps you manage your entire recruitment process.