Recruiters are in the people business. We rely on relationships to connect us to hiring opportunities and to referrals to fill those opportunities. How well do you leverage your network to support these key relationships? Do you network proactively? Or do you network strategically -- using your contacts to tap the right people at the right companies? For some recruiters, networking is the only way to do business. Rather than rely on job boards or cold calls, these recruiters leverage relationships to vet industry insiders and quickly zero in on the people they need to know.

Network-based recruiting is about growing and maintaining a well-honed set of business contacts that consistently yields high-quality results. "We've never posted a job on a job board," says Marc Davis, Founder and CEO of Hirestarter, an Austin, Texas-based recruiting company. A strong proponent of network-based recruiting methodologies, Davis eschews all forms of blind, mass outreach: cold calls, job postings, etc. Instead, Hirestarter relies on strategic networking, powered by a proprietary IT system, to fill the pipeline.

When a search firm like Hirestarter contacts a candidate, its always on the recommendation of a mutual friend: Jeff who knows Lisa who knows Tom who just happens to be the ideal Oracle-certified database developer. "We aim for the lukewarm call," says Davis. By using networking, Hirestarter recruiters often enjoy instant credibility with potential candidates. Referred by a mutual friend, candidates take the call more seriously; putting the recruiter in a better position to sell the opportunity. But regardless of whether the call leads to a hire, its the contact that counts. "Tom" represents a new relationship asset. He's not only a potential candidate, he's a new branch on a growing tree that could lead to future opportunities down the road.

Using your professional network to yield such fine, targeted results isn't always easy; it can require considerable effort, especially when you're just starting out. Recruiters that rely on network referrals must invest considerable amounts of time and money in growing and maintaining their networks. Managing information is a particular challenge. Network-based recruiters often invest in software solutions and even IT staff to help them manage data. After a certain point, Microsoft Outlook doesn't stand up to the task. To really be effective, you need to use information dynamically. You need a solution that will "capture relationships between candidates and their current employers, their former employers, and other candidates that they know and respect," says Marc Davis. A basic, customizable database, like Microsoft Access, is well equipped to collect, filter, and share network information. Recruiters who require more sophisticated tracking and interactive features favor solutions like NetSuite and Salesforce.com.

Building credible relationships is another important component of the network-referral model. These recruiters strive to deliver a positive experience to all their constituents. Its about practicing "credible networking," according to Marc Davis. Hirestarter, for example, works to engage in honest, mutually beneficial exchanges with everyone they come in contact with. Key here is actually having the time to talk to and get to know people. Remember, these recruiters do not spend much time combing through resumes. They're on the phone talking to folks or out in the field meeting people -- usually the right people. If Hirestarter is approached by someone about a job search, they take the time to talk to the person, to build the relationship. Courteous, thoughtful exchanges foster good will and keep clients and candidates coming back.

Though highly efficient, network-referral recruiting is admittedly better suited to certain industries and geographies than others. Tight-knit, high-demand industries like IT and finance/accounting are easier to make inroads into. Small companies where people work closely with one another, cube-to-cube, are also easier to penetrate than larger, more disparate organizations. Geography can also be an influencing factor. If you're recruiting in a small city like Austin, Texas or Portland, Oregon it can be easier to get a handle on who the players and companies are in your professional ecosystem.

Advocates of network-based recruiting believe the methodology gives them a considerable head-start in the search process. If recruiting is like a funnel, (with a wide mouth and a narrow spout), referral recruiting is like starting your search in the middle -- on the inside -- as opposed to starting on the outside edge. Though this model can require considerable time and resources to manage, the investment tends to pay for itself. Able to quickly identify the right candidates, network-based recruiters frequently enjoy low cycle-times and high contract volumes. The difference is being able to bring the right people to the table, faster -- in a matter of weeks as opposed to months.

Recruiters World Special Reports is a timely, in-depth news series that explores vital issues and trends affecting the human-capital industry. Published quarterly, Recruiters World Special Reports is presented and distributed exclusively through Recruiters World in Review. Visit the Special Reports archive to read previous articles. Watch for new articles as they appear on the Recruiters World home page.