Dear Barb:
We really enjoyed your session at the Fordyce Forum last year. I can’t get over the fact that you changed your entire program based on what you heard at the cocktail party. We were tired of hearing about trends and just wanted to learn how to make more money. I don’t know that I understood how to go about Revenue Modeling. I’ve read the handout more than once, but can you give me a simple explanation of what you meant? I’ve used a couple of the other ideas you gave us and they helped us close a couple of deals. Thanks for that!
HC from the Fordyce Forum
Dear HC:
When you conduct Revenue Modeling, you review where you have made placements or fills in the past 12 months. You are trying to identify that job order or contract that when it comes in you know you are going to fill it because that is what you do. The position is in your niche, you’ve filled orders like it before and you have candidates in your database or you know where to find them.
For your Direct Business study the following:
- Industry or Profession
- Title of the Job
- Salary Range
- Location
- Time to Fill
- Fee Charged
- Time to get paid
For the Contract Business:
- Industry or Profession
- Title of the Contract
- Pay Rate/Bill Rate – Margin
- Location
- Time to Fill
- Time to get Paid
You now aim 85% of your marketing efforts at that best business. Remember when I called on someone in the audience and asked her what job order she knew she could fill, she instantly described the easiest job order for her to fill. I then asked her what percentage of the orders they have written the first of the year, represented that best business. If you recall, she said 20%, which is the answer I almost always receive. Imagine if 80% of your job orders or contracts represented your best business?
I hope to see you back this week at the 2012 Fordyce Forum!
Barbara J. Bruno, CPC, CTS
Would you like to Ask Barb a question? Email her at support@staffingandrecruiting.com. Each month in The Fordyce Letter print edition, Barbara Bruno answers questions from individuals in the Recruiting Profession. We will bring you some of these Q&A responses from Barb each week on FordyceLetter.com.