Remote Hiring Company

How Profitable Is A Remote Hiring Company? (Updated for 2024)

Pat Walls

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Updated: September 4th, 2024

How Profitable Is A Remote Hiring Company? (Updated for 2024)

So you want to start a remote hiring company?

And the first question that came to your mind was, “well, are remote hiring companies actually profitable?”

With a market size of $152B - there’s plenty of business to go around.

Especially considering:

You could start a remote hiring company with as low as $200
Based on our data, remote hiring companies generate an average of $1.11M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a remote hiring company.

Let’s dive in!

Is a remote hiring company profitable?

Yes, a remote hiring company is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $1.11M per year with an estimated gross margin of 93%, you could expect to recover your investment within 5 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your remote hiring company.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your remote hiring company is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a remote hiring company worth it?

If you’re wondering if a remote hiring company is worth it, the answer is a big YES. With remote hiring companies, you have the potential to earn $1.11M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $152B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a remote hiring company to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful remote hiring companies case studies.

Examples Of Profitable Remote Hiring Companies

Here are a few examples of profitable remote hiring companies, and a few more details about them:

1. TECLA ($1.02M/year)

Gino Ferrand came up with the idea for TECLA while struggling to find backend software engineers for his own mobile game project. After realizing the challenges of outsourcing and the inefficiencies of freelancing sites, he decided to build his own remote team in South America and offer the same services to other companies. With a network of almost 9,000 remote candidates and a platform that allows companies to directly hire talent, TECLA has successfully connected hundreds of engineers with U.S. companies for full-time positions.

Is it profitable? Yes
How much money it makes: $1.02M/year

How I Started A $85K/Month Business Connecting Companies With Tech Talent In South America

TECLA is a bootstrapped business connecting startups with pre-screened tech talent in South America, boasting almost 9,000 remote candidates on their platform and over $1 million in revenue as of 2019.

Read this case study

Read by 9,880 founders

2. Distro ($1.68M/year)

Chad Ingram, the founder and CEO of Distro, came up with the idea for his business after facing challenges with hiring and retaining software developers in his previous ventures. Seeing the need for a better alternative in the competitive labor market, Chad created Distro as a marketplace for companies to find, hire, and pay remote development teams. Within 8 months of launching, Distro has already surpassed $2 million in annual recurring revenue and is focused on scaling its marketing and product implementation.

Is it profitable? Yes
How much money it makes: $1.68M/year
How much did it cost to start: $250K

Distro: From MVP To $2M ARR In 8 Months

Distro, a marketplace for companies to find and hire software developers, has reached $2 million in ARR in just 8 months, and is profitable, giving founders hope to grow through capital efficiency focussing on product and sales by aggressively targeting a $3.5 million ARR by December 2022 alongside building a scalable marketing system and product implementation.

Read this case study

Read by 3,119 founders

3. Devrize ($240K/year)

Jacob Fiore, the founder of a recruiting business called devrize, developed the idea for his business while working in the investment industry. He wanted to start a side hustle that aligned with his desire for endless financial gain, geographical flexibility, and control over his schedule. Recognizing the low barrier to entry in the talent acquisition industry, he started devrize as a contingent recruiter, focusing primarily on software engineering roles for venture capital-backed startups.

Is it profitable? Yes
How much money it makes: $240K/year
How much did it cost to start: $400

We Niched Down In The Recruitment Space And Are Generating $20K/Month In Revenue

A recruiting business founder shares how he found success by zeroing in on a specific niche (software engineering) and offering enticing referral bonuses ($8k for successful hires), resulting in 50% of placements coming from referrals and yielding $302,100 in revenue in Year 1.

Read this case study

Read by 2,074 founders

Learn more about starting a remote hiring company:

Where to start?

-> How much does it cost to start a remote hiring company?
-> Pros and cons of a remote hiring company

Need inspiration?

-> Other remote hiring company success stories
-> Marketing ideas for a remote hiring company
-> Remote hiring company slogans
-> Remote hiring company names

Other resources

-> Remote hiring company tips

How much can you make with a remote hiring company?

With a remote hiring company, you can make an average of $1.11M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $200. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 5 months.

How much does a remote hiring company make a week?

Based on our data, average weekly revenue for a remote hiring company ranges around $23.1K. As such, you could see monthly revenues of $92.2K.

To know if your remote hiring company achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your remote hiring company.

How much do remote hiring companies owners make?

The income of a remote hiring company owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established remote hiring company is about $23.1K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a remote hiring company owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Remote Hiring Company Profit Margins

Generally speaking, a remote hiring company can expect profit margin of around 93%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a remote hiring company, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, remote hiring company owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, remote hiring company owners can ensure long-term sustainability and profitability for their business.

Remote hiring company owner salary

The salary of a remote hiring company owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established remote hiring company, in a prime position, might see an average weekly salary around the ballpark of $21.4K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a remote hiring company may be a promising business to start - but the success of your remote hiring company mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable remote hiring company.

Part of

Starting A Remote Hiring Company: Everything You Need To Know

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