Seeking Guidance on Commission Percentage for Business Development Recruitment
Hi everyone,
I’ve been working as a recruiter on a largely commission-based model. Recently, I made some valuable connections that allowed my agency to establish an agreement with a new employer in a different country. This opportunity is projected to generate over £100k in revenue over the next year.
The employer has acknowledged my role in facilitating this connection and asked if I have a specific percentage in mind for compensation. I’m unsure what percentage is typical for situations like this.
Could anyone share what might be considered a reasonable rate? Is 2%, 5%, or 10% of the projected contract value appropriate?
While I wasn’t heavily involved in the discussions, my initial connections were crucial for making this happen.
Thank you for your insights!
It’s great to hear that you’ve been able to establish a valuable connection for your agency! When it comes to compensation for making connections, it’s important to consider a few factors like industry standards, your level of involvement, and the potential revenue involved.
Typically, referral fees in recruitment can range from 5% to 20% of the revenue generated. Given your situation where you made the initial connection but weren’t heavily involved in discussions, a percentage towards the lower end of that range might be more appropriate.
For a £100k contract, here are some thoughts:
It might be a good idea to start with 5% and be open to negotiation based on their feedback. Good luck!