--- title: "Recruiter Fees Explained: Contingency vs Retained vs Fixed Fee" description: Contingency recruiters charge 20 to 25% of salary, retained firms charge in stages, fixed-fee recruiters set one price per hire. Here is how each works. image: https://funded.club/hubfs/blog-featured-images/fc-recruiter-fees-contingency-retained-fixed-fee.png --- [![Primary\_logo](https://funded.club/hubfs/Primary_logo.svg)](https://funded.club/) [Book a call](https://funded.club/contact-us) - [Hire](https://funded.club) - [Pricing](https://funded.club/pricing) - [Find a job](https://funded.club/startupjobs) - [Case Studies](https://funded.club/case-studies) - [Locally](https://funded.club/case-studies/locally) - [Supernova](https://funded.club/case-studies/supernova) - [Isolocity](https://funded.club/case-studies/isolocity) - [WeTravel](https://funded.club/case-studies/wetravel) - [Digital Science](https://funded.club/case-studies/digital-science) - [Blog](https://funded.club/blog-results) - [Resources](https://funded.club/resources) - [Predict success](https://signup.predict.ventures/) - [Growth Planner](https://funded.club/growth-planner) - [Glossary](https://funded.club/glossary) - [FAQ](https://funded.club/faq) - [Contact us](https://funded.club/contact-us) [Book a call](https://funded.club/contact-us) - Engagement options: - [Hiring solutions](https://funded.club) - [Pay-as-you-go](https://funded.club/pricing) - Membership plan # Recruiter Fees Explained: Contingency vs Retained vs Fixed Fee ![recruiter-fees-explained:-contingency-vs-retained-vs-fixed-fee](https://funded.club/hs-fs/hubfs/blog-featured-images/fc-recruiter-fees-contingency-retained-fixed-fee.png?width=1200&height=628&name=fc-recruiter-fees-contingency-retained-fixed-fee.png) [Ray Gibson](https://funded.club/blog/author/ray-gibson) Sep 29, 2026, 8:58:11 PM *Updated September 2026* Startups pay recruiters in three main ways. Contingency recruiters charge a percentage of first-year salary, typically 20 to 25%, only when a hire is made; retained firms charge a fee split into stages, with part paid before the search begins; fixed-fee recruiters agree one set price per hire upfront, regardless of the final salary. For most early-stage hiring, the fixed-fee model gives the most predictable cost for the same end-to-end search. ## Contingency fees: how they work A contingency recruiter earns a percentage of the hire's first-year base salary, invoiced once the candidate starts or accepts. The typical range is 20 to 25%. The appeal is obvious: nothing is invoiced until a hire happens. The trade-off is that the fee grows with the salary, and several firms may be working the same role at once. A worked example: for a $120,000 engineering hire, a 20 to 25% contingency fee comes to $24,000 to $30,000. If you negotiate the salary up to $130,000 to close the candidate, the fee rises to $26,000 to $32,500. ## Retained fees: how they work Retained search is usually used for senior and executive roles. You commit to one firm for the search, and the fee is split into instalments: typically one at the start, one at a milestone such as a shortlist, and a final payment on hire. You are paying for commitment and a defined process. Fee levels vary widely between firms, so ask each one for a written fee schedule, including what happens to the instalments already paid if the search is cancelled. ## Fixed fees: how they work A fixed-fee recruiter quotes one price for the hire before the search starts. The price is linked to the role's salary band, not to the final offer, so a higher negotiated salary does not change what you pay. Fixed-fee models often combine features of the other two. Part of the fee may be paid at the start, which secures a committed recruiter, and the balance is paid when the candidate accepts. The difference is that the total is known on day one, which makes it easier to plan a hiring budget across a funding round. ## Side by side: which model fits which hire | Model | How the fee is set | When you pay | Often used for | | --- | --- | --- | --- | | Contingency | Percentage of first-year salary | On hire | Individual contributor roles, urgent one-off hires | | Retained | Agreed search fee, often salary-linked | In stages, starting before the search | Executive and board-level roles | | Fixed fee | One price per hire, set by salary band | Part at the start, balance on offer acceptance | Startups hiring across several functions | A simple rule of thumb: if you are making one senior hire with a large, confidential scope, retained search may suit you. If you are making a single hire and are happy to pay a premium only on success, contingency works. If you are building a team over the next year and want a stable cost per hire, fixed fee is usually the better match. ## Questions to ask any recruiter about fees - **Is the fee based on base salary or total compensation?** Some percentage fees include bonus or equity value, which changes the maths. - **What is paid before a hire, and is any of it refundable?** Get the conditions in writing. - **Who does the work?** Ask whether one named recruiter runs the search or whether it passes between people. - **What happens if the hire leaves early?** Ask for the replacement terms in the contract, not just on a call. For current pricing on any specific provider, check that provider's own website, as terms change. ## Where Funded.club fits Funded.club is a fixed-fee recruiting partner for funded startups and fast-growing teams across North America, Europe and APAC. Since 2019 it has helped 500+ startups from Seed to Series D. Fees are fixed per hire and agreed upfront, running from $4,900 to $21,900 and averaging 6 to 9% of salary. The bands are: up to $70,000 salary, $4,900; up to $110,000, $7,500; up to $150,000, $11,500; above $150,000, $15,900 to $21,900. In the example above, a $120,000 or $130,000 hire would be $11,500 either way. Part of the fee is an advance at the start of the search, with the balance due when the candidate accepts the offer. First-time customers can ask to defer the advance until they see their first candidates, and if Funded.club does not deliver a shortlist of at least 3 qualified candidates within 30 days, the advance can be claimed back in full. One dedicated recruiter runs each search, with first screened candidates within 7 days. Full details are on the [pricing page](https://funded.club/pricing), and there is more on the model in our guide to [flat-fee recruiters for startups](https://funded.club/blog/flat-fee-recruiter-startups). ## Frequently asked questions ### What is the typical contingency recruiter fee? Contingency recruiters typically charge 20 to 25% of the hire's first-year salary, paid when the hire is made. On a $100,000 salary that is $20,000 to $25,000. ### Is a retained search the same as paying a retainer to a fixed-fee recruiter? Not quite. Retained search is a model where the whole search fee is committed to one firm and paid in stages. A fixed-fee recruiter may also take part of its fee at the start, but the total is a set price per hire rather than a percentage of the final salary. ### Which recruiter fee model is cheapest for startups? It depends on the salary. Because contingency fees grow with salary and fixed fees do not, the gap widens as roles get more senior. Compare the total cost for your actual salary bands rather than the headline percentage. ### Can I mix fee models? Yes. Many startups use a fixed-fee partner for most roles and bring in a retained executive search firm for a single board-level hire. See our [recruiter cost guide](https://funded.club/blog/how-much-does-a-recruiter-cost-for-startups) for more on budgeting. Worth a brief chat about your next hire? [Book a free call](https://funded.club/contact-us). ## Hiring after a funding round? First candidates in 7 days. Fixed-fee, no commission. [See pricing](https://funded.club/pricing) [Book a free call](https://funded.club/contact-us) [Try the Growth Planner](https://funded.club/growth-planner) [![Primary\_logo](https://funded.club/hubfs/funded-images2022/Primary_logo.svg)](https://funded.club) © 2019-2026 Funded.club B.V. All Rights Reserved. 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