During the last three years or so, we have spoken to a significant number of recruitment industry specialists who have expressed an interest in considering owning their own business in the form of a Tanner Menzies Licensee. It has been interesting to hear what people are really looking for, their understanding of what it takes to own a business, and particularly what is involved in operating under a Licensee model.

There are many misconceptions around how it all works, so without letting too many secrets out of the bag we have put together an overview of some of the most misunderstood aspects of our successful model. This will enable comparison with alternatives and hopefully enable further consideration of this attractive option to traditional roles in the recruitment or human resource consulting space.

Please note: this information will only relate to our model, as distinct to some others who indicate they are providing a comparable offer.

Let’s start with the claim our model is a franchise, governed by draconian regulations that do not allow individual business acumen and initiative.

Incorrect. This is a Licensee model, which whilst providing basically everything you require for success, is very much a vehicle to transport your proven expertise into a profitable business. We encourage innovation and the ability to make it ‘your business’, with support.

Next is that there is a significant entry cost which must be paid before you even open your doors.

Incorrect. There is no entrance or start-up fee, the only cost being initial business expenses, which we advise you keep to a minimum in early days before your first placement fee is billed (this normally takes 8-12 weeks). We provide ongoing advice for growth over time and are always mindful of what is needed to make a profitable business. Salaries are normally considered after the first quarter of operation. We understand what makes a successful recruitment group work!

Another common misconception is that you compete with others in the group for business.

Incorrect. Your contract ensures that you are the owner of your License in a specialised space which is defined geographically, it is yours! What’s more, cross selling across Licensees is encouraged and rewarded.

A further misconception is that you are constantly measured on activity and outcomes.

Incorrect. We can assist with what you need to do to achieve desired outcomes, but it is your call. You run your business as you see best, with support if needed.

Another comment occasionally made is ‘why do it when you are lucky to earn any more than a high billing consultant?’

This would be true only if you currently received 80% of your billings. And remember, as you grow a significant percentage of what others in your team earn, (up to 40%) goes into the business and therefore your profit pool. Additionally, you own 80% of the equity in your business. So again, this comment is incorrect.

There are many other positives in owning your business under this Licensee model but one of the biggest is benefiting from the experience of others in your collegiate group of proven professionals who have a vested interest in your success.

The market is coming back strongly. Why not take the opportunity to build your own asset and benefit financially along the way? We have much more positive information to share regarding the potential for you to excel at Tanner Menzies. No doubt you have questions! call Peter Gleeson 0419367569, Ian Stacy 0417478229 or Peter Tanner 0419826637 or visit