The flat fee model: why we stopped charging a percentage
Percentage fees punish founders for hiring well. The flat fee aligns the recruiter with the outcome, not the salary.
Percentage fees punish founders for hiring well. The flat fee aligns the recruiter with the outcome, not the salary.
Why percentage breaks at the startup stage
Traditional agency models charge 20 to 30 percent of the first-year salary. The incentive is obvious: get the candidate to take the highest possible offer.
For a venture-backed company with limited runway, that is the wrong incentive. The right hire at the right price compounds. The wrong hire at the highest price destroys quarters.
Flat fee, agreed upfront
We agree the fee before the search starts. It doesn't move if the candidate ends up earning more, and it doesn't move if they end up earning less.
What it does do: it makes the conversation about fit, not about salary inflation.
What founders tell us
The most common feedback is the absence of friction in the offer stage. Without a percentage hanging over us, we can be honest about what the candidate is worth and what the role can carry.
That honesty is the whole point.
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