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How to Collect Your Fee: ‘We Referred the Candidate’

by | Apr 17, 2012 | Recruiter Training, Top Echelon Blog

Welcome to our ongoing series of blog posts in the Top Echelon Recruiter Training Center: “Jeff Allen’s Collection Tip of the Week.” Each week, we’ll highlight one collection tip from Allen, JD/CPC, the world’s leading placement lawyer.

Since 1975, Allen has collected more placement fees, litigated more trade secret cases, and assisted more placement practitioners than anyone else.  He’s also the author of 24 books and a regular columnist for The Fordyce Letter, one of the leading publications in the recruiting industry.

Below is this week’s collection tip for recruiters, courtesy of Jeff Allen.

What the Client Says:

“We didn’t hire, but we referred the candidate to someone else.”

How the Client Pays:

Since the client isn’t in the placement business, you’ll be unable to show that it intended to charge a fee.  The recipient will deny that it even knew who you were up to the time of the hire.

The way to get paid is to:

1. Check your fee schedule for any words that might be used to hold the client liable.

2. Get the candidate to tell you how the contact with the recipient occurred.

3. Invoice both, and wait patiently for 30 days (no more).  Then, if you don’t receive payment from either the client or the recipient, ask for a written explanation of why.  Do not attempt to explain your position, send any documentation, threaten or take any action until you receive that written explanation.

The biggest mistake recruiters make is to turn over their arguments and evidence too early.

The biggest fees they get is in nursing that documentation out of the parties.

Then having them point fingers at each other!

(Know how to collect your well-earned fees?  Test yourself!  Visit Allen’s Placement Law website and click the “Placement Fee Collection Quiz” button.  Allen can be reached via telephone at 310.559.6000 or via email at

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