Our financial model is based on sharing in your long-term success, not a one-time hit.
The initial fee is to cover some of our set-up costs, to reinvest in data mapping for our partners’ startup databases, and, bluntly, to ensure our partners do have some skin in the game. But we are not getting rich on these fees.
It’s more important to us to have a model that sees us share in your success through ongoing royalties (and please note that our royalties are in line with those charged by other franchisors). We do well if you do well – that’s a cornerstone of any partnership.
We don’t pay five-figure commissions to brokers or salespeople
Many other franchisors use brokers to attract franchisees. With some, a fairly sizeable chunk of the franchise fee will go to a broker. Our problem with this model is that the franchisee sees zero value for this part of their investment. They are paying their own recruitment fee, in effect.
Alternatively, the franchisor may pay a five-figure commission to their own salesperson. That’s fine, but we would again question where the value lies for the franchisee. What’s more, one wonders what spin might be put on a sale with a $10,000 bonus check in the offing.
We need to be competitive
We need to build the Reed brand in the USA, as it is not as well known in the States as some of our competitors (although we are a household name in the UK know how to build a brand). Therefore, we need competitive pricing to attract talented recruiters who can go out and help us raise the Reed profile.
In conclusion, we think we offer a tremendous package across marketing, tech, operational support, and learning and development. It’s as good, if not better than anything else out there. It is also of exceptional value. So get in touch to find out more about how we can help you build a great recruitment business.
