---
title: Retained Executive Search vs Fixed-Fee Search for Startups
description: Retained search suits confidential C-suite roles; fixed-fee search suits first VPs and Heads of at startups, with one agreed price. How to choose.
image: https://funded.club/hubfs/og_image_funded.png
---

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# Retained Executive Search vs Fixed-Fee Search for Startups

![retained-executive-search-vs-fixed-fee-search-for-startups](https://funded.club/hs-fs/hubfs/blog-featured-images/fc-retained-executive-search-vs-fixed-fee.png?width=1200&height=628&name=fc-retained-executive-search-vs-fixed-fee.png)

[Ray Gibson](https://funded.club/blog/author/ray-gibson)

 Sep 29, 2026, 8:55:11 PM

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*Updated September 2026*

Retained executive search commits one firm to a senior search, with the fee paid in stages starting before any candidates are presented, and suits confidential, board-level or highly specialised roles. Fixed-fee search sets one agreed price for the hire upfront and suits startup leadership roles such as a first VP, Head of or Director, where you want a dedicated recruiter and a predictable cost. The right choice depends on the seniority, the confidentiality and how much of the process you want the search firm to own.

## What retained executive search involves

In a retained search, you sign an exclusive agreement with one firm for a specific role. The fee is usually paid in instalments, for example at signing, at shortlist and at hire, so part of it is committed whether or not the search ends in a hire.

In return you typically get a defined process: a detailed role specification, a map of the relevant market, structured assessment of candidates, referencing, and often support with board or investor interviews. Some firms, such as Riviera Partners, an executive search firm focused on technology and engineering leadership, specialise by function. Others, such as Hunt Club, a network and referral-led recruiting firm often used for leadership hires, build searches around their networks. Fee structures differ, so check each provider's own site or ask for a written proposal.

## What fixed-fee search involves

A fixed-fee search agrees the total price before the search starts, based on the role's salary band rather than a percentage of the final package. For leadership hires this matters, because senior offers often move during negotiation. With a fixed fee, a higher base salary does not change what you pay.

Fixed-fee models can still include a committed start. Part of the fee may be paid as an advance at kick-off, with the balance on offer acceptance, which keeps a recruiter dedicated to the role without a percentage-linked invoice at the end.

## Comparing the two for a startup leadership hire

|  | Retained executive search | Fixed-fee search |
| --- | --- | --- |
| Fee basis | Search fee agreed with the firm, often linked to compensation | One price per hire, set by salary band |
| Payment timing | Instalments, starting at signing | Advance at start, balance on offer acceptance |
| Best suited to | C-suite, board and confidential replacements | First functional leaders at Seed to Series D startups |
| What you get | Formal market mapping and assessment | A dedicated recruiter running the search end to end |

A worked example on cost. If a VP of Sales is offered $200,000 base and you were comparing a percentage model at the typical 20 to 25% contingency rate, the fee would be $40,000 to $50,000. A retained firm will quote its own fee. With Funded.club's fixed fee, a salary above $150,000 falls in the $15,900 to $21,900 band, agreed before the search starts.

## How to decide which model to use

Ask yourself four questions:

- **Is the search confidential?** Replacing a sitting executive quietly often suits the discretion and formal process of retained search.
- **Is the board running the process?** If investors or board members expect a formal slate and assessment report, retained search is designed for that.
- **Is this a first leader for a function?** A first Head of Marketing or VP of Engineering at a funded startup is a builder role. You need candidates who have scaled a team at a similar stage, and a recruiter who can move quickly.
- **How many leadership hires are coming?** If a new round funds several senior roles at once, predictable per-hire costs make planning easier.

## Getting a leadership search right, whichever model you choose

When a senior search stalls, the cause is often the brief rather than the sourcing. Before kick-off, agree what the leader must achieve in their first year, which decisions they will own, who they report to and how the board will be involved. Decide the compensation range, including equity, before the first candidate conversation.

Keep the interview loop short and senior. For role-specific guidance, see our guides to [hiring a VP of Sales](https://funded.club/blog/hire-vp-sales-startup) and [hiring a CTO](https://funded.club/blog/hire-cto-startup).

## 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, including leadership hires alongside engineering, product, sales, marketing, operations and customer success roles.

The fee is agreed upfront and set by salary band, from $4,900 up to $15,900 to $21,900 for salaries above $150,000, averaging 6 to 9% of salary. Part is an advance at the start, with the balance on offer acceptance. 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 the search end to end, including headhunting candidates who are not actively looking. First screened candidates arrive within 7 days. Full terms are on the [pricing page](https://funded.club/pricing).

## Frequently asked questions

### Is retained search worth it for a startup?

It can be for C-suite, board-facing or confidential searches where a formal process is expected. For a first functional leader at a growing startup, many founders prefer a fixed-fee search with a dedicated recruiter and a known cost.

### Can a fixed-fee recruiter handle executive hires?

Yes, provided the recruiter headhunts rather than relying on applicants. Ask how they will reach senior people who are not job hunting and how they will assess leadership experience.

### Why does the fee basis matter more for senior hires?

Senior packages are larger and often rise during negotiation. With a percentage fee, each increase adds to the invoice. With a fixed fee, the price stays as agreed.

### How do I compare leadership search providers?

Ask each for a written proposal covering the fee, payment stages, what happens if the search is cancelled and replacement terms. Our [recruiting companies guide](https://funded.club/blog/best-recruiting-companies) covers the main models.

Worth a brief chat about your next hire? [Book a free call](https://funded.club/contact-us).

## Hiring after a funding round?

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```