External vs. internal recruiters

One of the methods I discuss in my book to get your first 1099 gig is to "apply for a job."

This involves using a regular job application process and then persuading the PM or hiring manager to bring you on as a 1099.

The first step of that process usually involves talking to a recruiter.

There are two types of recruiters: internal and external.

Internal recruiters are employees of the hiring company.

External recruiters work for themselves or a professional recruiting firm.

Generally speaking, both types of recruiters are incentivized to bring on W2 employees.

External recruiters are almost 100% incentivized to bring on W2 employees since they are compensated when they successful place a new employee. I think it's something like 20-30% of the employee's first year salary.

Internal recruiters are generally salaried employees so while they have metrics to hit, they aren't compensated per hire (perhaps some bonuses).

When dealing with either type of recruiter, you should generally avoid bringing up the 1099 conversation until you get to the hiring manager or program manager stage. The recruiters are otherwise going to write you off and not move you forward because they are not incentivized to bring on 1099s.

However, there are some situations in which you can bring it up with an internal recruiter. If you don't want to waste time moving forward with an interview process, you can just say up front you will only go 1099, not do W2. If they know the PM is desperate, they may move you forward.

This will almost never work with an external recruiter though. They will lose potential revenue because their client filled the slot with a 1099, which they don't get paid for.

This is all to say that overall, you should wait to have the 1099 conversation until you get to the PM.

If you do want to have the 1099 discussion earlier, only do it with an internal recruiter, not an external one.

Want the full playbook? Check out Going 1099.