How to Win More Business Without Slashing Recruiting Fees

Jun 4, 2026 | Client Fee Issues

QUESTION: We are seeing downward fee pressure in our market. Clients that we have worked with in the past want to cut our fees, saying other recruiters are working for less. What are some strategies you can use to combat that?

Understanding Fee Pressure from Existing Clients

This is a hard one because it is existing clients. That is where you have some leverage, versus trying to get a new client. The strategies are similar. Here is the one thing that is part of my process. Nothing works 100% of the time. You have to imagine when they are making that request of you, even though they know, like, and trust you, recruiting fees are somewhat commoditized.

With an existing client, you have to ask yourself, how bad do I want the business? With a couple of clients that I had, when they wanted to do that, I let them walk, and one of three things happened. They let me walk and we did not do business together again. I held my ground and they stayed with me. Or they left and then came back. Sometimes it is a good idea to let them walk if you cannot convince them to stay the same, and then follow up with them a month later and see what they are getting.

Using Past Performance to Justify Your Fee

A lot of our fees were between 25% and 30% when the rest of the industry was easily taking 20%. We filled positions quickly with great people. When clients wanted to lower our fee, I started with questions.

“You have Mary Smith there. Before we talk about that, tell me about Mary Smith.”

“Oh, she is amazing. She is one of our best hires. She is doing the work of one and a half people.”

“Great!”

Then ask about a couple of other candidates.

“You see what we produce. You see what we produce. Is that worth the premium?”

They might say no. Let them go. You have to be prepared sometimes with those questions.

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Diagnosing the Cost of an Open Position

The second area is doing a diagnostic on what it costs for the position to remain open. What does it cost for this position to remain open for a week? For a month?

I am telling you, they probably do not know. It is your job as a market master in your space to be able to prod them. If it is a sales position, that is relatively easy. But if it is someone in finance, accounting, or IT, what is the cost to you individually and what is the cost to you as a company for every week this position remains open? Because if there were no cost, you could save a lot of money and not fill the position. Helping clients understand the true cost of vacancy often changes the conversation from fee percentage to business impact.

Creating a Performance-Based Fee Conversation

The third area is a technique I got from Jeff Kaye.

“I tell you what, we have been doing it for 25%. Let’s do this. We will fill this position for 30%, and give me 10 business days. If I do not have three people for you to interview within 10 business days, then I will do it for whatever fee you are proposing. If speed is a premium, let’s up the fee and let’s try that.”

These are a couple of ideas.

When clients start comparing recruiters solely on fee percentage, the conversation has to shift back to value, results, and the cost of delay. The goal is not simply to defend your fee. The goal is to help the client understand what they are actually buying.

P.S. Whenever you’re ready… here are 4 ways I can help you grow your recruitment business:

1. Get clear on what actually drives your revenue: If you’re not sure what needs to happen each week to hit your number, the Recruiter GPS gives you a simple way to stay on track so you’re not guessing day to day. https://go.therecruiteru.com/recruitergps

2. Join the Recruiter Think Tank: Connect with firm owners who are scaling, too. It’s our Facebook community where smart recruiters learn to make more money and get more freedom. https://www.facebook.com/groups/there​​…

3. Learn how to build a more predictable recruiting business: If you’re ready to go deeper, this masterclass walks through the systems and structure behind how top recruiters create consistent billings and momentum. https://go.therecruiteru.com/masterclass

4. Work with me and my team privately: And if you ever want to get some 1:1 help, we can jump on the phone for a quick call and brainstorm how to get you more leads, more placements, and more time. http://go.therecruiteru.com/audit

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