Most sales recruiting agencies charge between 20 and 25 percent of the new hire’s first-year pay. For an account executive on a $100,000 salary, that’s roughly $20,000 to $25,000. Executive searches cost more, and how you pay matters as much as the percentage.
What are the main fee models?
- Contingency. You pay only when you hire someone the agency introduced. There’s no upfront cost. This is the most common model for individual sales roles.
- Retained. You pay part of the fee up front, usually in three instalments, whether or not a hire is made. It’s common for VP and C-level searches, and fees often run 25 to 35 percent.
- Flat fee. A fixed price per hire, agreed in advance. It works well when you’re hiring several similar roles, such as a group of SDRs.
Is the fee based on salary or on-target earnings?
Check this before you sign. Sales roles are paid partly in commission, so a fee calculated on on-target earnings (OTE) can be a lot higher than the same percentage of base salary. Ask the agency which number it uses and put it in the agreement.
What does the guarantee cover?
This is where agencies differ most. A typical guarantee lasts about 90 days: if the hire leaves or is let go in that window, the agency finds a replacement or refunds part of the fee. After that, the risk is yours. Sales hires often need longer than 90 days to show whether they can hit their number, so the length and terms of the guarantee matter.
Ask four questions:
- How long does the guarantee last?
- Does it cover performance, or only resignations and terminations?
- Is it a replacement or a refund?
- Are there conditions, such as paying the invoice within a set time?
What other costs should you budget for?
The fee isn’t the full cost of a sales hire. Add the time your managers spend interviewing, the months of ramp before a new rep produces, and the cost of starting again if the hire doesn’t work out. A cheaper agency with a short guarantee can cost more in the end than one that stands behind the hire. We break this down in HR’s true hidden costs of in-house sales recruiting.
Is a sales recruiting agency worth the cost?
It usually is when an empty territory is costing you revenue every month, when you’ve made a bad hire before, or when the people you want are already employed and not answering job ads. It’s harder to justify for roles you fill easily through referrals.
How Sales Talent Group charges
We charge the industry-standard rate and work on a performance basis: you pay only when we make a placement, and there’s no deposit. Every hire comes with a guarantee that they’ll reach their first-year sales quota, a placement within 45 days, and a one-time replacement within 12 months. If we haven’t filled the role in 45 days, you can cancel without paying anything. Volume pricing is available when you’re hiring several people.
