Hi everyone,

I’ve been working in recruitment for a while (mostly contingency-based), and I’m currently exploring different ways to structure pricing for SMB clients (roughly 20–200 employees).

I’m trying to step back from the “standard” contingency model and understand what actually feels most fair and trustworthy from the client’s perspective in today’s market.

From my experience, SMBs often struggle with:

• paying a large fee upfront when hiring is uncertain
• concerns about early attrition
• lack of transparency around recruiter effort vs outcome

So I’m looking at a few possible models and would love honest feedback from people who’ve been on the buying side (founders, hiring managers, operators, etc.):

1) Traditional contingency model

• Standard % of first-year salary
• Paid when the candidate starts
• 60–90 day replacement guarantee

2) Reduced fee + milestone-based billing

• Lower overall fee
• Payments split across the first 30–45 days of employment
• No change in total fee, just timing spread out

3) Subscription + small success fee hybrid

• Monthly fee for sourcing / recruiting support
• Small success fee per hire

My goal is not to “reinvent recruiting,” but to understand:

• Which model feels most predictable and low-risk as a client?
• What would make you more likely to work with a new agency?
• What immediately feels like a red flag or too complex?

I’d really appreciate any honest perspective — especially from people who’ve actually hired recruiters for SMB roles.

Thanks in advance 🙏