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Retained vs contingent search for sales and marketing hires

Retained vs contingent search for sales, marketing and customer hires: how each model works, what it costs, and which roles suit which approach.

Hiring12 min readBy TRG GTM Research
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Retained search suits senior, confidential or genuinely scarce go-to-market hires, where you need a committed partner and a full market map; contingent search suits individual-contributor sales, marketing and customer roles with a healthy candidate supply, where speed and volume matter more. Many software companies use both, and a hybrid 'engaged' model sits between them.

The question we are asked most by founders and heads of talent is not which recruiter to use, but which model. The choice of retained vs contingent search changes how the recruiter works, how much attention your role gets, who carries the risk and what you pay. This guide explains both models for sales, marketing, customer success and RevOps hiring in the UK and US, with a decision framework you can apply role by role.

How does contingent search work?

In contingent search, the recruiter takes your brief, introduces candidates and is paid only when one of them accepts an offer and starts. There is no upfront cost. Fees are a percentage of the hire's first-year salary. UK guidance from Agency Central puts typical contingency fees for permanent roles at 15 to 20 per cent of first-year salary, rising to around 30 per cent for hard-to-fill positions (Agency Central). In the US, contingent recruiters may earn 20 to 35 per cent of first-year base salary, and the fee may also include expected first-year bonus (Wikipedia: Executive search).

For go-to-market roles the base for the fee needs agreeing up front. A sales hire's package has three parts: base, on-target variable and sometimes equity. Some agreements charge on base only, some on base plus target variable (OTE), and the difference is large. On a role with a 50:50 split, a fee charged on OTE is double one charged on base at the same percentage. Read the definition of 'remuneration' in the terms before you compare quotes.

How does retained search work?

In retained search, the fee is usually paid in three instalments: one when the search starts, one when a shortlist is delivered and the balance when the candidate is placed (Agency Central; Wikipedia: Executive search). The firm works exclusively, runs a structured process (market mapping, outreach, assessment, shortlist, references, offer management) and reports progress on an agreed timetable. Headhunting fees on a retained basis tend to be around 30 per cent of salary in the UK, according to Agency Central.

Because the firm is paid to run the process, it can afford to spend weeks mapping a market, approaching people who are not looking and walking away from candidates who would be a quick placement but a poor hire. That is what you are buying.

What is engaged or container search?

Between the two sits a hybrid, often called engaged or container search. You pay a smaller amount upfront to secure commitment and exclusivity, and the balance on placement. The upfront payment is usually deducted from the final fee. It suits roles that are too important to leave to a contingent race but too numerous or too junior for full retained search: a first head of demand generation, a senior enterprise AE in a narrow vertical, or a batch of AE hires for a new territory.

Retained vs contingent search: a side-by-side comparison

ContingentEngaged / containerRetained
When paidOn placement onlyPart upfront, balance on placementIn stages, typically three
ExclusivityUsually none; several agenciesExclusive for a periodExclusive
Recruiter commitmentLower; competes for speedMedium to highHighest; dedicated process
Search methodDatabase, network, adverts, active candidatesMix of network and targeted outreachFull market map, passive candidate outreach
ReportingAd hocRegularStructured, with market data
ConfidentialityHarder to controlGoodBest
Risk to clientLow upfront cost; risk of slow or poor-fit hireSharedFee committed before outcome
Best forIC roles with healthy supplyHard IC roles, first functional hires, volume hiringLeadership, confidential and scarce roles
How the three models compare. Fee ranges are the published typical ranges cited above; actual terms vary by firm and role.

What does a retained search look like week by week?

Founders who have only used contingent agencies often ask what they get for the upfront fee. A well-run retained search for a GTM leader follows a visible process with deliverables at each stage. Timings vary with the role and market; the outline below is illustrative.

WeeksStageWhat you should receive
1–2Brief and calibrationWritten role specification, scorecard, target company list and agreed off-limits list
2–5Market mapping and outreachLong list with reasons, weekly report on approaches, responses and market feedback on the role and package
5–7AssessmentShortlist of assessed candidates with written reports covering track record, team results and motivation
7–10Client interviewsInterview guides, debriefs after each stage, candidate feedback relayed both ways
10–12References and offerStructured references, offer strategy, counter-offer management, resignation support
Post-startOnboarding check-insCheck-ins with the hire and the client during the first months
Illustrative timeline for a retained VP Sales or VP Marketing search.

The market feedback in weeks two to five is often worth as much as the shortlist. If the best candidates in your market will not move for the package, the title or the reporting line you have proposed, a retained search tells you early, with evidence, instead of leaving you to discover it after three months of thin CVs.

Which GTM roles suit contingent search?

Contingent works well when three conditions hold: there is a decent supply of qualified candidates, the profile is easy to define and you can move quickly through interviews. In go-to-market hiring that usually covers:

  • SDR and BDR roles, including team leads (/specialisms/sdr-bdr)
  • Mid-market and commercial account executives in well-understood categories (/specialisms/account-executives)
  • Customer success managers and account managers at mid-level
  • Marketing specialists with clear tool and channel skills: paid media, marketing operations, content, lifecycle
  • RevOps and sales ops analysts

Contingent also suits companies hiring several similar roles at once, where a recruiter can learn the brief once and run multiple placements from the same market work.

Which GTM roles suit retained search?

Retained is the better model when the hire is senior, the profile is narrow, the search needs confidentiality, or the cost of a wrong hire is far larger than the fee:

  • CRO, VP Sales, VP Marketing, CMO, VP Customer Success and Head of RevOps
  • First country or regional leader, for example a first UK general manager for a US company, or a first US head of sales for a UK company
  • Replacement of an incumbent leader who does not yet know
  • Roles with very small candidate pools: enterprise AEs selling into a specific regulated vertical, solutions engineers with a rare technical stack, partnership leaders with specific cloud-marketplace experience
  • Searches that need a market map for the board or investors

For leadership roles specifically, the a16z guide to hiring a CRO stresses finding a leader who has already scaled from your current revenue to the revenue you want to reach in the next 12 to 18 months (a16z). That kind of fit is narrow. Most people who match it are employed, performing and not reading job adverts. Reaching them is the work retained search pays for. See /specialisms/sales-leadership and /specialisms/marketing-leadership.

How much does each model really cost?

Compare total cost, not the headline percentage. A cheaper fee on a search that runs for four extra months, or ends in a hire who leaves within a year, is the more expensive option. A worked example makes the trade-offs clearer.

ItemContingent at 20% of baseContingent at 20% of OTERetained at 30% of base
Fee£15,000£30,000£22,500
Paid before a hire?NoNoYes, about two-thirds
ExclusivityNoNoYes
Cost of a three-month delayThree months of lost ramp timeSameLower, if the process runs to timetable
Cost of an early leaverDepends on rebate termsDepends on rebate termsUsually a free replacement search
Illustrative cost comparison for a single senior AE hire on a £75k base, £150k OTE package. Percentages are hypothetical, within the published ranges above; check your own terms.

The biggest hidden cost in sales hiring is time. A quota-carrying role left empty for a quarter is a quarter of pipeline not built, and a further ramp period before the replacement is productive. If your average AE is expected to close a meaningful share of next year's new business, every month of vacancy has a revenue cost that dwarfs the fee difference between models.

What are the risks of each model?

Both models have predictable failure modes. Knowing them helps you manage the recruiter, whichever you choose.

ModelRiskHow to manage it
ContingentCVs sent fast to win the race, with thin screeningLimit to two agencies; ask for written notes on fit for every CV
ContingentYour role gets less attention than retained workGive an exclusive window of two to four weeks in return for commitment
ContingentDuplicate submissions and ownership disputesAgree ownership rules and a validity period for introductions
ContingentCandidates hear about your role from several recruitersControl how the role is described in the market
RetainedPaying upfront for a search that stallsTie instalments to deliverables, such as a shortlist meeting an agreed spec
RetainedFirm cannot approach people at its other clientsAsk which companies are off-limits before signing
RetainedSlow processAgree a timetable with weekly reporting and the right to end the search
BothFee on OTE or equity surprisesDefine remuneration in writing; ask whether equity counts
Typical risks and how to manage them.

Should you give a GTM role to several contingent agencies?

It is tempting to brief five agencies and let them compete. In our experience it often slows the hire. Each agency gives the role less attention because the odds of being paid are lower. The best recruiters may decline altogether. Candidates hear about the role from several sources, which makes it look hard to fill. And the same candidate may be submitted twice, creating disputes.

A practical middle ground for contingent roles: choose one or two specialist agencies, give one of them a short exclusive period, and judge them on the quality of the first shortlist. Specialists who recruit only go-to-market roles in your market will usually know many of the right candidates already.

What should you ask a recruiter before signing?

Questions to ask, whichever model you choose:

  1. How do you charge? Percentage, base or OTE, whether equity or sign-on bonus counts, and when invoices are due.
  2. What is the replacement or rebate policy? How long it lasts, whether it is a refund or a free replacement, and what triggers it.
  3. Who will work the role? The person who sells you the search should be the person running it, or you should meet who is.
  4. What is your process? Market map, outreach, screening, assessment and references, with a timetable.
  5. Which companies are off-limits? Retained firms will not approach staff at their clients. Know the list.
  6. What have you placed that is similar? Similar role, stage, deal size and market. Ask for the types of roles, not client names.
  7. How will you assess sales performance? Ask how they verify quota attainment and what references they take. See our guide to verifying quota attainment.

How to brief a recruiter for a sales or marketing hire

Whatever the model, the quality of the brief decides the quality of the shortlist. A good GTM brief includes:

  • What the person will sell or market, to whom, at what price point and through what motion (inbound, outbound, partner, product-led)
  • Quota or targets, ramp and how they were set
  • Package: base, variable, split, accelerators, equity and any draw
  • The team they join and who they report to
  • What has and has not worked so far, honestly
  • The interview process and the decision makers
  • Deal-breakers and genuine must-haves, kept to a short list

Recruiters can only sell the role as well as you have explained it. A vague brief produces a shortlist matched to job titles rather than to the job.

A simple decision framework

Answer these in order for each role:

  1. Is the role a leadership or first-of-function hire? If yes, start with retained or engaged.
  2. Is the role confidential? If yes, retained.
  3. Are there fewer than a few dozen people in your market who could genuinely do it? If yes, retained or engaged.
  4. Is the hire one of several similar roles? If yes, engaged or a single specialist contingent partner.
  5. Is supply healthy and the profile clear? If yes, contingent with one or two specialists.
  6. Is speed critical and the cost of vacancy high? Favour the model that gives you the most committed recruiter time, not the lowest fee.

TRG GTM works on contingent, engaged and retained terms depending on the role. If you are weighing up the right model for a sales, marketing, customer or RevOps hire, brief us at /employers#brief and we'll recommend one, with the reasons.

Retained and contingent search: common questions

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