Pricing your services isn’t just about numbers — it’s about positioning your agency, protecting your margins, and showing clients the value you bring.

Get it wrong, and you either leave money on the table or scare off great clients.
Get it right, and you build a sustainable, profitable agency that grows with you.

Here’s how to think about it — simply and smartly.

First, Know Your True Costs

Before you set a single fee, get clear on what it really costs you to run your agency.
Think beyond just recruiter salaries. Include:

Admin and compliance costs
Office expenses (even if remote — software, tools, phones)
Marketing and lead generation
Payroll if you do temp staffing
Ongoing training and development

If you don’t know your baseline costs, you’re just guessing — and that's dangerous.

Different Jobs, Different Pricing

Not every recruitment job is the same.
Your pricing has to match the reality of the work involved.

1. Retained Search

You’re offering exclusivity. Clients are committing to you — so your pricing should reflect that.

How to price:

Charge an upfront fee (research, headhunting, pipeline building)
Add a success fee — typically 20%–35% of first-year salary
Keep negotiation margins tight: 10–15% maximum wiggle room

Tip: Retained work is harder to win but more predictable once you have it. Be firm on your value.

2. Contingency Search

You only get paid if you place someone.
Risk is higher — so your pricing needs to cover that.

How to price:

Set a success fee of 20%–30% of salary
Expect longer sales cycles and more competition
Leave 15–20% margin for negotiations

Tip: In contingency, speed, communication, and candidate quality matter even more. Charge accordingly.

3. Temporary or Contract Staffing

This is different again — you’re effectively running payroll for your clients.

How to price:

Mark up wages by 25%–50% (depending on industry and seniority)
Cover your employer liabilities: tax, insurance, holiday pay
Stay sharp on margins: 10–15% flex space for negotiations

Tip: The best temp agencies make money on volume and loyalty, not squeezing margins too thin.

Other Factors to Weigh In

You can’t price blindly off formulas alone. Context matters too.

Market Demand: High-demand niche? Raise your rates.
Client Relationship: Loyal, easy clients deserve competitive rates. High-maintenance ones? Charge for the pain.
Specialization: Specialists (tech, finance, healthcare) can command premium fees.
Unique Value: Faster turnaround, better sourcing tech, higher-quality placements — highlight it. And price it in.

Real Talk: Pricing Isn't Set Once

Markets shift.
Clients change.
Your agency evolves.

Revisit your pricing every 6–12 months based on:

Results you’re delivering
Demand in your sector
Cost changes inside your business

Be flexible — but don't race to the bottom.
Win on value, not discounts.

Final Word

Setting the right price is part art, part science.

Know your numbers
Understand the type of work
Build in margins you can defend confidently

Remember:
Clients aren’t just paying for a CV.
They’re paying for faster time-to-hire, lower risk, better talent, and fewer headaches.

Price like a partner, not a vendor — and you’ll build an agency that lasts.