Commission splits
Recruitment consultant commission splits: what’s typical, what’s fair, and what’s possible.
Everything you want to know about how recruitment commission structures work in the UK — including the parts most agencies prefer not to talk about.
The basics
How recruitment commission is typically structured.
Most agency commission structures follow a variation of the same model: you bill a certain amount, the agency keeps most of it, and you receive a percentage of what’s left after costs. The headline commission percentage is almost never the effective rate you actually earn.
The threshold model
The most common structure. You have a billing threshold. You earn no commission until you hit it. A consultant on 25% with a £10,000/month threshold who bills £15,000 earns commission on £5,000 only. Effective rate on total billing: 8.3%.
The tiered split model
Some agencies use tiered structures where the split rate increases with billing. More generous than a flat split with a high threshold, but the effective rate on total billing still falls significantly below the headline number.
OTE (On-Target Earnings)
OTE figures in job adverts assume you hit the billing target. Whether that target is achievable, and what commission you'd earn if you fall short, is not always made clear.
The market rates
What’s typical across different types of agency.
Commission splits vary significantly by agency type, size, and structure.
| Agency type | Typical split | Notes |
|---|---|---|
| High-volume / high-street | 10–20% above threshold | High thresholds, high volume expected. Consultant generates large amounts for the agency. |
| Boutique specialist | 20–30% above threshold | Smaller teams, higher average billing. Better than high-volume but still capped by the agency margin. |
| Executive search | 15–25% of placement fee | Longer billing cycles, larger placements. Total comp can be significant but less predictable volume. |
| Self-employed desk arrangements | 35–50% | Closer to independent model but consultant pays own desk costs (technology, space, admin). |
| Unknown Potential | 85% of gross profit | No threshold. No tiered structure. Platform fee covers all technology, compliance, and back-office. |
The differences at scale:
| Billing | Agency at 25% (after £10k/month threshold) | Agency at 30% (after £8k/month threshold) | Unknown Potential at 85% |
|---|---|---|---|
| £80,000 | ~£0–£10,000 | ~£0–£14,400 | £68,000 |
| £150,000 | ~£25,000 | ~£39,000 | £127,500 |
| £300,000 | ~£75,000 | ~£97,200 | £255,000 |
Agency estimates assume even monthly billing spread. Independent figures based on current Unknown Potential terms. All gross before personal tax.
The details that matter
The four things that reduce what you actually earn.
Thresholds
The single biggest factor in most cases. A consultant on a 25% split with a £120,000/year threshold doesn’t earn 25% on £150,000 — they earn 25% on £30,000, which is £7,500. An effective rate of 5% on total billing.
Clawbacks
Many commission structures include clawback clauses: if a placed candidate leaves within a specific period (often 8 to 12 weeks), you repay some or all of the commission. In a bad month where a clawback fires, your net commission can be zero or negative.
Team billing
Some agencies split placement credit between the account manager and candidate consultant — 60/40 or similar. A placement you made may only count as 60% of the fee for your commission calculation.
What counts toward threshold
Not everything you bill necessarily counts toward your threshold the same way. Some agencies exclude retained search fees, contract GP, or specific deal types. Read the detail of your commission scheme carefully.
A different model
What keeping the majority of what you bill actually looks like.
Unknown Potential offers a different model: 85% of your gross profit from each placement. No threshold to clear, no tiered rate that changes with billing volume, and no clawbacks — fees are invoiced and collected before earnings are paid.
The 15% platform fee covers everything you’d otherwise need to buy, build, and maintain yourself: a bespoke AI-enriched recruitment CRM, ATS, compliance infrastructure, finance and invoicing workflow, contractor payroll, credit control, and brand support.
| Commission (agency, typical terms) | Earnings (Unknown Potential) | |
|---|---|---|
| Annual billing | £150,000 | £150,000 |
| What you receive (gross) | ~£30,000–£37,500 | £127,500 |
That is not a marginal difference. It’s the difference between being a well-paid employee of someone else’s business and owning the economics of your own work.
What would this mean for you?
Book a conversation. We’ll work through your numbers with you.
Every consultant’s situation is different. The clearest way to understand what independence would mean for you financially is a direct conversation. No commitment and no pressure.