Contingency Recruiting Agency

Place candidates on contingency basis, earning fees only upon successful hire

Startup Cost
$15,000-$75,000
Difficulty
Intermediate
Time to Profit
6-15 months
Profit Potential
$21,000-$167,000/month

Overview

Contingency recruiters earn 15-25% of first-year salary per placement.

Placing 30-100 candidates annually at $60K-$150K salaries generates $250,000-$2,000,000 with 80-95% margins.

In 2025, contingency recruiting serves mid-level hiring needs.

Revenue from contingency placement fees (typically 18-25% of first-year comp), paid only upon successful hire and start, volume recruiting programs, recruitment process outsourcing (RPO), and candidate assessment services.

Successful recruiters source candidates quickly, submit quality candidates consistently, build strong client relationships despite contingency model, specialize in industries or functions, and achieve high placement-to-submittal ratios.

Companies with mid-level hiring needs as clients.

Marketing through business development and networking, industry specialization, recruiter speed and quality reputation, LinkedIn and social recruiting, and client retention.

Required Skills

  • Candidate Sourcing
  • Screening & Assessment
  • Client Relationship Management
  • Sales & Business Development
  • LinkedIn Recruiting
  • Speed & Efficiency

Pros and Cons

Pros

  • Lower startup costs than retained search
  • Can work multiple searches simultaneously
  • Scale by increasing placements
  • No upfront fees required from clients
  • Faster placement cycles than executive search

Cons

  • Only earn fee if your candidate hired (no fee if client hires someone else)
  • Highly competitive with multiple recruiters on same search
  • Lower fees than retained search (15-25% vs 25-35%)
  • Client loyalty lower with contingency model
  • High volume needed for consistent revenue

How to Get Started

  1. Build recruiting skills and networks
  2. Select industry or functional specialization
  3. Develop candidate sourcing strategies
  4. Build client relationships and active searches
  5. Source and screen candidates quickly
  6. Submit quality candidates and manage process
  7. Close placements and build recurring clients

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