There’s no secret formula for how much of your business model should involve contracting and how many contract placements you should make each year. However, if you crunch some numbers, you might find the results to be rather eye-opening.
Many recruiters set a goal of having between eight and 12 contractors out on assignment at any given time. In addition, another goal they have is to earn $10 per hour on each of those contractors. Let’s take a look at how that translates into weekly cash flow, shall we?
12 active contractors x $10/hour x 40 hours/week = $4,800/week
Now, let’s project that over an entire year:
$4,800/week x 52 weeks = $249,600/year
That’s nearly a quarter of a million dollars in contracting money, and that can be achieved in addition to whatever direct-hire placements you make. As you can see, contracting doesn’t have to constitute the majority of your business model for you to make a significant amount of money from it.