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How to Make Money with a 10 til 2 Franchise

1. Placement: One employee working in one job is a Placement.
   
   
2. Margin: The difference between the hourly rate you bill a client for a 10 til 2 employee and the hourly pay the employee earns. The Margin is expressed as a percentage: (Bill rate – Pay rate / Bill rate = Margin).
   
   
3. Billable Hours per Placement: The average weekly hours worked per placed 10 til 2 employee times an average of 4 weeks in a month; each placement may work as few as 4 or as many as 35 hours per week (this number must be in compliance with your state’s employment laws related to ‘part-time’ work).
   
   
4. Total Billable Hours: This is the total of average monthly hours per placement multiplied by the average number of placements in a month.
   
   
5. Average Bill Rate: The bill rates for each placement will vary depending on the type of position being filled; for instance, an administrative assistant may be billed out at $19 per hour, whereas, a full-charge bookkeeper may be billed out at $23 per hour. Your average bill rate will vary depending on the mix of placement types you have filled and the billable rates your market will bear.
   
   
6. Direct Placement Fee Revenues: Some clients prefer to hire our candidates directly. The candidate is not placed on the 10 til 2 payroll, therefore, there are no direct costs associated with this type of revenue.
   
   
7. Buy-Out Revenues: When a 10 til 2 employee has been working for a period of time in a job (our standard is 6 months), the client may wish to ‘buy’ the employee from us and put that employee on their own payroll. At this time we will charge the client a buy-out fee equal to the average of one-month cost of that employee over the 6 months of employment (based on historical information).
   

Here is how you make money:

1. Build strong margins: Mark-up will vary between industries and markets. We will assist you in achieving the highest margins possible.
   
   
2. Increase billable hours: The higher the better! You want as many placed employees working as many hours as possible; if your average employees work more hours per week, then you can have fewer placements while maintaining profitability.
   
   
3. Maximize average bill rate: The higher the better; this rate will vary depending on your market conditions.
   
   
4. Develop direct placements: This type of revenue has no direct costs; therefore, it is very good for the bottom line.
   
   
5. Encourage buy-outs: These revenues will be reflective of the placement initially made (number of hours per week and bill rate); you lose the on-going revenue stream of weekly hours, however, you receive a large chunk of cash at one time and it means you have a happy client and a happy employee which leads to additional business. Often, it would take you months of an on-going placement to make the same revenue you can make from a buy-out fee.

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