Freelance recruiter earnings header with fee, placements, salaries and costs tiles

How much a freelance recruiter makes comes down to three numbers: the salaries you recruit for, your fee percentage and how many placements you make. A recruiter placing ten candidates a year on £45,000 salaries at a 20% fee bills £90,000 before costs. Place two a year and it’s £18,000. Six figures is very possible, but it’s a numbers game, not a salary.

That’s why I’m not going to quote you an “average freelance recruiter salary”. Salary sites will give you one, but freelancers don’t earn a salary, and an average across someone placing two people a year and someone placing twenty tells you nothing. The maths is more useful.

How do freelance recruiters get paid?

Freelance recruiters earn through placement fees, retainers or day rates, rather than a salary.

ModelHow it worksWhat it means for your income
ContingencyUsually 15 to 25% of the candidate’s first-year salary, paid when they startBig fees, but lumpy and unpredictable
RetainedPart of the fee upfront, the rest on placementSteadier cash flow, harder to win at first
Day rate or monthly feePaid for your time on sourcing, screening or ongoing hiringPredictable, but capped by your hours

Most freelancers start on contingency and add retained or monthly work as their reputation grows. There’s more on setting fees in how to price recruitment fees.

More on this: what to put in a freelance recruiter contract.

The placement maths

Your yearly billing is average salary x fee percentage x number of placements. Play with those three numbers and you’ll see where your income really comes from.

Average salaryFeePlacements a yearBilling before costs
£35,00018%8£50,400
£45,00020%10£90,000
£60,00020%10£120,000
£80,00025%6£120,000

These are examples, not promises. But they show why specialists in higher-salary niches tend to earn more for the same amount of work: one placement on an £80,000 role is worth more than two on £35,000.

What comes off the top

Billing isn’t take-home pay. Costs, tax and the wait to get paid all come out first.

These are the costs that surprise people:

  • Kit: a decent laptop, phone, headset and reliable internet.
  • Set-up and admin: company registration, a business bank account, ICO registration.
  • Software: a recruitment CRM, email and maybe a website. Giig is free for one user, with paid plans from £14.99 per user/month +VAT.
  • Job boards and LinkedIn: often the biggest monthly bill. Here’s how much LinkedIn Recruiter costs.
  • Insurance: professional indemnity at the very least.
  • An accountant: worth every penny.
  • Legal: terms of business checked by a solicitor.
  • Marketing and learning: a simple brand, the odd event, courses or coaching.
  • Rebates: if a candidate leaves early, you may owe some of the fee back.
  • Tax: income tax and National Insurance, or corporation tax and dividends if you’re a limited company. Set money aside from every invoice.

And remember the timing. A placement might take a couple of months to land, and clients often pay 30 to 60 days after the start date.

What affects how much you make

Your niche, your network, your fee level and how much of your week goes on admin make the biggest difference.

  • Niche: higher-salary, hard-to-fill roles mean bigger fees.
  • Experience and network: recruiters with a strong network place faster.
  • Your fee: 20% vs 15% on the same placements is a third more income.
  • Business development: your pipeline of clients is your future income.
  • Admin: every hour spent retyping CVs is an hour not making calls.
  • Mix of work: retainers and monthly fees smooth out the lumpy months.

How to make six figures as a freelance recruiter

To bill six figures, you need either more placements, bigger salaries or a higher fee, and usually a bit of all three. For an experienced recruiter bringing a network, it’s realistic. For someone new to recruitment, it’s unlikely in year one.

  1. Work smarter, not harder. Track what actually leads to placements and drop what doesn’t.
  2. Focus on good clients. Ones who pay your fee, give you feedback quickly and come back.
  3. Know your people. Understand what makes candidates tick, so you place them in roles where they stay.
  4. Build relationships. Stay in touch with clients and candidates even when there’s no live role.
  5. Ask for referrals. Happy clients and candidates are the cheapest source of new business.
  6. Use your network. Tell everyone what you do and who you help.
  7. Cut the admin. CV parsing, templates and a proper recruitment CRM give you hours back every week.
  8. Charge properly. Don’t discount your fee to win work you didn’t want anyway.

For more on growing billings, read how to grow recruitment revenue.

The risks

Freelance income is lumpy, so plan for it.

  • Variable income: some months you’ll bill three fees, some months none.
  • Rebates: most terms include a guarantee period, so a placement that leaves early can cost you.
  • Late payers: chase invoices the day they’re due.
  • No sick pay or holiday pay: budget for time off.

Frequently asked questions

How much do freelance recruiters make in the UK?

It varies hugely, because freelancers earn fees, not a salary. A recruiter making ten placements a year on £45,000 salaries at a 20% fee would bill £90,000 before costs and tax. Two placements a year at the same rate would be £18,000.

What percentage do freelance recruiters charge?

Usually 15 to 25% of the candidate’s first-year salary on a contingency basis. Retained searches often charge a similar total fee, with part paid upfront. Day rates and monthly fees are agreed case by case.

Do freelance recruiters get a base salary?

No. Freelance recruiters earn from placement fees, retainers or day rates. Some contract for agencies or in-house teams on a day rate, which gives steadier income but less upside than winning your own clients.

Is freelance recruiting more profitable than working for an agency?

It can be, because you keep the whole fee rather than a commission split. But you also pay all your own costs, carry all the risk and have no salary to fall back on. It suits experienced recruiters who can win their own clients.

How long does it take to make money as a freelance recruiter?

Your first placement can take anywhere from a few weeks to a few months, depending on your network. Then clients often pay 30 to 60 days after the start date. Plan for three to six months of savings before income becomes steady.

What are the hidden costs of being a freelance recruiter?

Job boards, LinkedIn, insurance, an accountant, legal checks on your terms, software, marketing, and rebates if a candidate leaves early. Plus tax, which you need to set aside from every invoice.

Final thoughts

Freelance recruiters can earn very well, but there’s no average that tells you what you’ll make. Work out your own maths: the salaries you recruit for, your fee and how many placements you can realistically make. Then keep your costs and admin down, and keep the business development going.

Want more time for placements? Start on Giig for free. No credit card, no contract.