He cites a recent example of how his firm saved the client agency time and money and added value for the long term. The remaining 10 were less than desirable candidates. After they contacted us, we sent three candidates from cross-town rivals and they hired one. We advise them about salaries, rates, and other issues. When they call in a pinch, we can help them out with freelancers, and we can save them a lot of time and trouble in filling permanent positions.
Most firms receive compensation from the client companies.
The ad agency recruiters charge 20 to 30 percent of the candidate's first year salary. This practice is consistent with that of the other firms that fill permanent positions, although the salary percentage varies. For freelancers, the placement firm usually negotiates a project fee or day rate with the client company, based on the candidates skills, length of the assignment and other factors. Some firms mark up the freelance rate and add a percentage above that for managing the process. What he pays his freelancers is negotiated individually.