Question 1

What is the difference between contingency and retained recruiting?

Accepted Answer

In contingency recruiting, the agency only gets paid if they successfully place a candidate — typically 15–20% of salary paid on hire. In retained recruiting, the client pays an upfront retainer (often 30–50% of the fee) before the search begins, with the balance due on placement. Retained search signals exclusivity and prioritization, while contingency means recruiters are competing against each other for your open role.

Question 2

Which is better for SDR hiring — contingency or retained recruiting?

Accepted Answer

Neither model is optimal for SDR hiring. Contingency searches for SDR roles often get deprioritized because agencies work multiple clients simultaneously and SDR roles are time-intensive relative to their fee. Retained search for an SDR role means paying $5,000–$15,000 upfront for a $12,000–$20,000 total fee — economically poor for entry-to-mid sales roles. Shortlist delivers equivalent results in 48 hours for $199/mo.

Question 3

When does retained recruiting make sense?

Accepted Answer

Retained recruiting makes sense for senior leadership, C-suite, or highly specialized roles where the search requires extensive confidentiality, network access, and 100% recruiter focus. VP Sales, CRO, and Head of Sales searches often justify retained fees. SDR, BDR, and AE individual contributor roles are poor candidates for retained search — the fee-to-outcome ratio is poor at those salary levels.

Model	Contingency	Retained
Fee structure	Pay only on placement (15–20%)	Upfront fee ($3K–$15K) + remaining on placement
Recruiter commitment	Working multiple clients — your role deprioritized	Exclusive focus on your search
Best for	Common roles with good candidate supply	Hard-to-fill, senior, or confidential searches
Risk	Low financial risk, low recruiter priority	High upfront cost, even if search fails
SDR hiring fit	Marginal — SDR roles are over-paid for contingency	Poor — retained fees for SDR roles are unjustifiable
Shortlist alternative	$199/mo, 48h delivery, no per-hire fee	$199/mo, 48h delivery, no per-hire fee

Contingency vs. Retained Recruiting for SDR Hiring

See the difference yourself

Contingency vs. Retained Recruiting for SDR Hiring

See the difference yourself

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