What Does a Recruiting Agency Charge?

The two fee models

Recruiting 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.

Typical contingency fees

Contingency fees for GTM and sales roles typically range from 18% to 25% of first-year base salary. On a $90K base AE hire at 20%, that is $18,000, paid only when the candidate starts. 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.

Typical retained fees

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.

What you get for the fee

The fee covers:

• Access to passive candidates who are not on job boards
• Screening and vetting, quota attainment verification, deal size fit, reference checks
• Market intelligence on comp and availability
• Time savings, a senior GTM search done well takes 80–120 hours of recruiter time

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.

What is not included

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.

Replacement guarantees

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.