What does it take to build a recruiting firm that survives three recessions, crosses borders, and stays profitable without retainers?
In this episode of The Resilient Recruiter, David Fishman tells the unfiltered story behind Sparrow Search, a binational executive search and staffing firm he built from scratch after nearly losing everything in 2009. With a team of 12 and placements ranging from plant supervisors to presidents, David proves that long-term success isn’t about flashy branding or fancy tech, it’s about grit, loyalty, and evolving with your clients.
David revealed how he bootstrapped through the Great Recession on credit cards, how he wins retained-level deals without retainers, and how multiple revenue streams helped him create a recession-proof model.
If you’re a recruiting firm owner looking to grow sustainably, serve clients more deeply, or weather tough markets, this one’s a must-listen.
Episode Outline and Highlights
- [02:44] How David started with recruiting and what inspired him to launch Sparrow Search.
- [10:05] Learnings from running a business during the recession, and the secret sauce for David’s 30-year longevity in the industry.
- [15:48] Discussion on current operations and business structure.
- [26:59] What strategy does David implement to deal with challenges in 2025?
- [38:13] David shares their HR strategy.
- [52:53] Dealing with difficult HR stakeholders.
- [58:10] Sparrow’s period of utilizing technology.
- [01:06:00] Multiple revenue streams for your staffing firm.
- [01:12:00] How being impulsive can be a double-edged sword when running your business.
Broad Market Coverage: Hiring Candidates from Maintenance Managers to Vice Presidents
David believes that relying on one industry or one type of placement can crush your business when the market shifts. That’s why Sparrow operates across manufacturing, mining, engineering, and tech — placing roles from line workers to leaders.
He explained that the mechanics when hiring whatever position is the same, and it actually gets easier when it gets higher, as executives tend to call back more. He explained: “They’re everything from administrative to manufacturing, engineering, heavy industrial companies, and all the above. So when you get a deal, you, you know, you find the candidate, you present the candidate, they’re interviewed, they’re hired, okay? It’s the same thing.”
This year, their fees range from $4,440 (lowest) to $120,000 (highest), demonstrating broad market coverage. As a firm owner, this is something worth pondering: “Does having a specific niche always mean limiting your search to high-level positions?” Indeed, we need to stop thinking that niche means narrow. We should also think in layers: industry, function, level, and geography.
Three Revenue Streams for Sparrow Search
On top of contingency placements, David built additional revenue streams through the following channels:
- Short-Term Recruiter Contracts: Contract bilingual recruiters to clients for 3-month periods at $8,000-$10,000 monthly
- Temporary Staffing: Launched second firm serving West Texas and southern New Mexico with his partner, Manny
- Contract Engineering Teams: 20 employees in Guadalajara contracted to US engineering companies for virtual work
These models deepen client loyalty, stabilize cash flow, and create year-round production even when perm slows down. David shared, “Every time we add a new service, it helps us survive another economic cycle.”
Your takeaway as a firm owner? Consider creative multiple revenue streams that not only produce added income but also add more value to your clients and candidates.
Strategies for Dealing with HR
One pain area of recruiters is dealing with HR stakeholders, especially if they are being blocked from speaking directly with hiring managers. On the other hand, David built his career primarily through human resources relationships rather than bypassing HR for hiring managers.
He emphasized the importance of “playing by the rules” and asking permission whenever applicable. His mindset is towards “fierce loyalty” to clients, where his team members are not allowed to criticize clients regardless of frustrations. “Because they really feel like we’re in competition. And in the very beginning, I tell them we’re not in competition. We’re here to assist you. We’re here to assist your team and make it better. “
How does he deal with HR staff who are too controlling or difficult to deal with? David shared the value of patience. “You find that people who are over one are too controlling, usually don’t last in these large organizations.”
