I've talked before about my journey into the "recruiting" world. I didn't know anything about recruiting, and didn't do any market research when I started. Anything I knew about it came from things I'd heard from other people or experience with recruiters doing outreach.
One thing I've heard on a number of occasions is people don't like to deal with recruiters because they can be very intense about collecting fees. They often require exclusive contracts, and they can be aggressive and litigious.
On the one hand, I've experienced scenarios where you do feel cheated as the person who referred the candidate or the job. There's value in that, which is why it's a business model. So I have seen that side of it. They should be compensated for what they are doing.
Most of the time they do charge their percentage upfront at one time, which can cause cash flow issues.
I do feel that our model at Commerce Hero is much friendlier. We charge our fees month-to-month. Our fee is probably too low at this point (12% of annual salary versus the average 20-30%), and we will likely be raising it in the future to be more competitive. But the month-to-month model is unique and helps with cash flow.
There have been a few incidents of people not paying fees, but the worst thing we've done is putting someone on blast on social media. We aren't as aggressive as bigger companies, and perhaps that will become a necessary evil if we scale up. But for now, I'm happy that we are able to provide this much friendlier method of fee collection and a different atmosphere.