Recruiting agencies charge one of two ways, contingency or retained, both priced as a percentage of the placed candidate's first-year base salary. Here's what the typical ranges look like, what the fee actually covers, and what to ask before you sign.
See typical fee rangesRecruiting agencies charge in one of two ways: contingency or retained. Contingency means you pay only when a candidate is successfully placed. Retained means you pay an upfront engagement fee regardless of outcome. Both models price the fee as a percentage of the placed candidate's first-year base salary.
| Model | Typical Fee | Example |
|---|---|---|
| Contingency | 18%–25% of first-year base | $90K base AE at 20% = $18,000, paid only when the candidate starts |
| Retained | 25%–33% of first-year base | $180K VP Sales base at 25% = $45,000 total, paid in three installments |
Contingency fees for GTM and sales roles typically range from 18% to 25% of first-year base salary. There is no upfront cost, if the recruiter does not place anyone, you owe nothing. Most startups use contingency for AE, SDR, CSM, and mid-level GTM roles.
Retained search fees for senior roles (VP Sales, CRO, VP Marketing) typically range from 25% to 33% of first-year base salary, paid in three installments: one-third at kickoff, one-third at shortlist delivery, one-third at placement. On a $180K VP Sales base at 25%, that is $45,000 total, $15,000 at kickoff, $15,000 at shortlist, $15,000 at placement.
Access to passive candidates who are not on job boards.
Quota attainment verification, deal size fit, and reference checks on every candidate.
Real-time data on comp and candidate availability across the markets a recruiter is actively working.
A senior GTM search done well takes 80–120 hours of recruiter time, time you get back.
The less visible value is market intelligence. A recruiter who is actively working GTM searches in New York, San Francisco, Austin, and Chicago sees what candidates are being offered in real time. That data shapes your comp strategy and helps you move fast when the right person is available. SHRM notes that the average time to fill a position is 44 days, and every open day carries an opportunity cost in lost revenue.
Most fees do not include background checks (typically $50–$150 per candidate, billed separately), relocation assistance, or work authorization support. Confirm with your recruiter what is and is not included before signing.
Most reputable agencies offer a replacement guarantee: if the placed candidate leaves or is let go within 60–90 days, the agency will re-search at no additional fee. Ask for this in writing before you engage. A recruiter who does not offer a replacement guarantee is telling you something about their confidence in their placements.
"The question to ask before engaging a recruiter: 'What is your replacement guarantee, and what does it cover?' A recruiter who does not offer one is telling you something about their confidence in their placements."
Beacon Talent works on both contingency and retained models. Book a call and we will recommend the right structure for your search. 15 minutes, no commitment, no pressure.
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