Sam Blond’s Post

Startups shouldn’t use recruiting agencies to hire sales reps. Here’s why: Founders and sales leaders regularly ask me “which recruiting firm(s) do you recommend to find our early AE’s?” When I ask why they want to use an agency over doing the recruiting themselves, 2 themes emerge: 1) founders generally don’t have sales backgrounds or sales networks. Leveraging an “expert” in recruiting salespeople will produce better candidates and hires. 2) using an agency will save time. My experience is the opposite with both. Candidate quality: When I joined Brex there were 2 sales reps. Both had been in-network hires from our CFO who had brought 2 of the best sales reps from SoFi with him. I hired the next several reps from my personal network - all top performers at their respective companies. And those hires brought the other top reps from their previous companies with them. While there are exceptions to the rule, the best salespeople do not use recruiting agencies to join a new company. They want to go somewhere their reputation precedes them and they trust the people and company they’re joining. Accordingly - the population of candidates joining companies through in-network referrals are better candidates/performers than the population of candidates joining companies through recruiting agencies. Time savings: Onboarding to a recruiting agency takes time. You have to define the profile, create a job description, and sell the recruiters on your business so they’re able to sell candidates. You then receive a batch of resumes. Every resume says something like: top 10% on the team, 160% to quota, presidents club every year, closed the most revenue in company history, etc. So you start taking interviews. All the candidates seem pretty good. Some better than others. You progress some candidates to spend more time with them and meet the rest of the team. You start doing some references on a few of them. Ultimately make and negotiate a few offers. Finally someone(s) accept an offer to join the company as a complete unknown who was placed by a recruiter who was paid to place them. This process takes weeks to months from start to finish and countless hours of onboarding, interviews, reference calls, etc. You ultimately produce lower quality hires and spend more time in the recruiting process when working with an agency than doing the recruiting yourself.

Cameron Murray

Founder @ JAC | Recruiting GTM Leaders

1mo

There’s not a single sentence I agree with in here, ha, but I’m curious nonetheless… I’d love to see any data, even subjective, to back the claim that candidates who *don’t* work with agencies are higher performers. It’s one thing to not see the value in leveraging an agency network, it’s another thing to not see the value in the people who opt into leveraging an agency network. For example, the candidate who accepted a role through me this morning, is on her 3rd role with me all of which she’s been the #1 performer and 2x she’s been a founding AE. All 3 roles are with wildly technical products and sales processes. Her former leaders will speak volumes to the value she adds to the teams she’s on (Chris) and her new VP of Sales chose to hire her through a contingent search instead of their own candidates (which they had in play) becusee they simply didn’t have someone who could compare (even at a $30k savings if they hired a candidate without a fee). I also did all the prep, coordination, references and offer negotiation. She was one of 4 profiles presented, 4 total interviews and a 100% offer acceptance rate (92% in my career).

Alex King

Talent Acquisition | AI Workforce Readiness

1mo

These are really interesting points, and I agree with many of them, especially about joining people they trust. I also agree that the best salespeople don't use recruiting agencies, but that is because they are not active. If they are performing well, they have little incentive to move, especially in B2B SaaS, where ramp-up time is significant. When founders ask about the benefits of using external recruiters versus relying solely on referrals and in-network, I recommend trying both simultaneously. Often, they find out that referrals can yield good candidates, but external recruiters can find great ones. They are surprised at the leveled-up talent they are seeing. You have to actively go after the best and it's worth benchmarking both. Good recruiters also have an enormous sense of urgency and can push the process on both the candidate and company sides, saving the founders a lot of time. It really depends on who you are working with , what type of mindset the recruiter has, and if they take a quality or quantity approach.

Sam Friskey

Building VC/PE-backed tech organisations

1mo

I respectfully disagree with Sam Blond with this take. Allow me to introduce (crowbar) Cognatio Solutions For over a decade, we've helped founders/startups build their early-stage GTM organisations. Our experience, data, and broad industry exposure enable us to advise founders on what "good" looks like at thier unique stage, drawing from successful and unsuccessful past examples. Founders want to avoid the cost of a bad hire, which is best achieved by understanding the nuances of early-stage hiring. Our data set provides founders with confidence in their hiring decisions. For example, this is what company X did, and this is how thier reps performed since, Here are our process steps for success (scorecard alignment / cultural assessment, etc). Conversely, these companies experienced churn in thier founding hires and here’s why….. While we don't claim to be a silver bullet, dismissing our (or anyone’s) services would be commercially unwise. Props for a thought-provoking topic 👏🏼

Chuck Brotman

Sales, Marketing, CS, & Leadership Recruiting | Blueprint Expansion aka gtmrecruiter.com

1mo

Correct, great candidates don’t “use recruiting firms.” But the best sales recruiters go find them for their clients, and articulate the mission, vision, and value prop as well as or even better than much of the internal staff in place

Tim Yandel

Soil Health | GTM Builder | Lightbulb Moments | CRO

1mo

You shouldn't use any channel exclusively. It pays to diversify channels where you are recruiting yourself, responding to resumes in your ATS and LinkedIn inbox and comparing that to the quality of a few, trusted resources externally. I've found that startups who depend on 100% internal referrals or 100% agency sourced candidates will suffer in quality as well as a diversity in their sales team.

Monica Stewart

Getting founders out of survival mode through scalable revenue | $2M - $20M ARR

1mo

Not sure this is an either/or scenario. If you’ve got great referrals from your network those will always be the best leads. But you might not have those for lots of different reasons. In that case, recruiters are amazing. I’ve seen a LOT of bad ones and some really good ones

Sam Blond, sounds like you’ve had some bad experiences…and back when I was building my other businesses, I had similar subpar experiences. That said, when you find the “right” firm, it is actually what you want. Someone who you trust that is sending highly qualified/”referred” candidates. In addition, the best sales people actually like working with good recruiters. They can cut through the B.S., help them understand why this is a good move (or not), etc. Also, a good firm, will do the opposite of what you say. They’ll help you move much faster. If it’s taking you both a long time to get aligned on what you need (they should help you think that through) and a long time to get you talent, then either you picked the wrong firm or you are unsure yourself of what you need. When companies are trying to scale, they should have a multi pronged approach, and make sure they are really aligned with any recruiting partners…when it works, it’s a huge accelerator to the business.

Eugene Lu

F0under & CE0 of Execierge - Executive Concierge for C-Suites | Providing exceptional Executive Assistants at less than half the cost of a full time one

1mo

Reading the post, I knew the recruitment folks would be super defensive.

Jennifer Schlador

Think Jerry Maguire for job seekers Job Search Strategist

1mo

So you hire cronies that look and think just like you? Interesting, you would think that is a good thing. I used to be a director of recruitment for an accelerator. Through my executive recruiting firm. The partners in the accelerator were smart enough to know EVERY single hire mattered in an early stage start-up. I recruited for every firm they loaned or raised money for. I can't tell you how many founders had no idea about hiring. Or any sales or for that matter any department you want to name experience. But they had BRILLIANT ideas. Sorry, but this is poor advice. You must have never worked with a great recruiting firm. Especially when you stated, “Top performers don't work with recruiters.” That is exactly who works recruiters work with. Job seekers don't work with recruiters. Recruiters FIND the best candidates. Not the other way around. Recruiters have the name “headhunters” for a reason. They are partners in your business. Not outsiders when done well. Bias is real. Diversity is always better. And there is an art to hiring well. And, of course, there is always a place for referrals. Referrals can be some of the best hires. So I agree with you. Absolutes are rarely, if ever, true.

Pete Strouse

Saving infosec hiring managers their most precious resource: TIME

1mo

The only way hiring with an external recruiting partner takes longer is if A) the recruiter doesn't know what they're doing or they aren't responsive, and B) if the company makes it take longer. All else equal, a competent specialist recruiter will generate better results quicker than leveraging one's network which takes as LOT more time. Take for example a CISO search I completed a while back. Within 48 hours of a signed agreement, I had sent the CEO 7 highly qualified CISOs that met his requirements. I'd like to see anyone's network work that fast. And if anything, recruiting salespeople is much easier because response rates to (good) cold outbound are higher than technical roles because "game recognizes game."

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