Introduction

When hiring an external agency, you are usually presented with two extreme options: the "Contingent" agency (low risk, low commitment) or the "Retained" firm (high cost, high commitment).

At Buckhead Recruiting, we believe neither model fits the modern startup perfectly. This guide breaks down the differences and explains why we chose a third path.

1. The Contingent Model ("The Race")

The most common model in standard staffing agencies.

• How it works: "No Win, No Fee." You only pay if they hire someone. You can engage 5 different agencies at once to work on the same role.
• The Pros: Zero financial risk upfront.
• The Cons: Because the agency isn't guaranteed payment, they work on volume. They send the same resume to 10 clients. If your role becomes difficult or "niche," they often silently de-prioritize it for easier wins.
• Best For: Junior roles, commodity skill sets, and mass hiring.

2. The Retained Model ("The Surgery")

The model used by executive search firms (Korn Ferry, Egon Zehnder, etc.).

• How it works: You pay an upfront fee (typically 33% of the estimated salary) before the search begins, regardless of the outcome. You work exclusively with one firm.
• The Pros: You get white-glove service, deep research, and 100% of the firm's attention.
• The Cons: It is expensive and slow. If the search fails, you have already spent a significant amount of capital.
• Best For: C-Suite Executives (CEO, CFO) and confidential replacements.

3. The Buckhead Recruiting "Hybrid" Model (The Partnership)

We built this model specifically for Venture-Backed Startups.

We found that startups need the speed of contingent search but the quality of retained search. Our Hybrid Model bridges the gap.

How It Works

Instead of a massive upfront fee (Retained) or zero commitment (Contingent), we use a Shared Risk Structure:

1. The Engagement Retainer: A flat monthly fee to activate the search.

○ Why? This secures dedicated resources. It moves your role from a "passive listing" to an "active project," guaranteeing weekly headhunting hours and consistent candidate flow, unlike high-volume agencies.

2. The Success Fee: We remain incentive aligned. The majority of the fee is performance-based and due only when the candidate accepts your offer.

Why Founders Prefer This

• Accountability: Because most of our fees are tied to success, we are motivated to close.
• Focus: Because of the retainer, we can afford to ignore "low-hanging fruit" from other clients and focus deeply on your complex search.
• Cost: It is significantly more affordable than traditional executive search but yields better results than "resume slingers."

Frequently Asked Questions

Q: Why should I pay a retainer if other agencies work for free?

A: "Free" agencies prioritize speed over accuracy. They operate on a "First to Submit" basis. By paying a small engagement fee, you move your role from "If we have time" to "Top Priority." You are paying for focus, not just a resume.

Q: What happens if I find the candidate myself?

A: Since we work in partnership, we can discuss "carve-outs." If you have a specific candidate in mind before we start, let us know! However, once we begin the search, our goal is to benchmark your internal referrals against the market's best to ensure you are making the right choice.

Q: Are your fees standard for the industry?

A: We price specifically for the Pre-Seed to Series C market. Yes, we are a bigger investment than a generic staffing shop, but we are significantly less than a 'Big 5' executive firm. We believe in a flexible model that specifically adapts to your stage of growth.

Created by Buckhead Recruiting Company - The modern way to hire.