Fractional Sales Recruiting vs Contingency: Fee Math for Founders
Side-by-side fee math for fractional sales recruiting vs 20 to 30% contingency. When each model wins for AE and VP hires.
TL;DR
Contingency sales recruiting usually bills 20 to 30% of first-year cash (or OTE). On a $150k AE that is $30k to $45k. On a $350k VP Sales that is $70k to $105k. Kas Seat is a month-to-month retainer ($5,000 to $8,000 a month, up to $10,000 for senior AE and above) with zero success fees. Prefer per-hire? Kas Milestone Search example fees: SDR $5,000, AE $7,500, Sr AE/SM $10,000. Director/VP/CRO: specialist/retained quote only. Choose contingency for a one-off backfill. Choose Kas Seat when you are filling multiple GTM seats and want dedicated bandwidth without percent-of-OTE sticker shock.
List prices: fractional sales recruiting cost.
What is contingency vs fractional (sales)
Contingency recruiting
You pay only if a hire is made. The fee is typically 20 to 30% of first-year cash compensation (some firms use OTE). Multiple firms can work the same role. Speed and submission volume often beat depth.
Fractional sales recruiting
You pay a fixed monthly retainer. A sales-specialist recruiter embeds with your GTM team, runs the pipeline, and fills open seats. No percent-of-comp success fee on the Kas fractional model. Turn on or off month to month. Model primer: fractional recruiting guide.
Kas also offers Milestone Search example fees (not contingency %): SDR/BDR $5,000 / AE $7,500 / Senior AE / Sales Manager $10,000. Director, VP, and CRO: quote only.
Fee model comparison
| Model | How you pay | Typical cost | Success fee? | Best for |
|---|---|---|---|---|
| Contingency (industry norm) | % of first-year cash or OTE | 20 to 30% per hire | Yes (the whole fee) | One-off, lower-urgency backfill |
| Kas Milestone Search | Success fee quoted per role | SDR $5k / AE $7.5k / Sr AE/SM $10k | Milestone example fee only (through Sales Manager) | Single GTM IC/manager seat |
| Kas Seat | Month-to-month retainer | $5,000 to $8,000 a month, up to $10,000 for senior AE and above | Zero | Multiple GTM seats, from first AE/SDR hires to scaling pods |
| Director / VP / CRO search | Specialist / retained quote | Project or retainer quote (not Milestone example fee) | Quote-based | Leadership seats |
Guarantees on Kas AE/SDR/Sales Manager searches
- Free market scan in 48 to 72 hours
- 3+ qualified candidates in 3 weeks or we keep hunting free
- 60-day re-hunt on placement (not a refund)
- These IC/manager guarantees are not promised for Director, VP, or CRO searches
Worked examples: AE $150k OTE and VP Sales $350k OTE
Example A: Account Executive, $150,000 OTE
| Fee model | Math | You pay |
|---|---|---|
| Contingency @ 20% | 0.20 x $150,000 | $30,000 |
| Contingency @ 25% | 0.25 x $150,000 | $37,500 |
| Contingency @ 30% | 0.30 x $150,000 | $45,000 |
| Kas Milestone AE example fee | Milestone Search example | $7,500 |
| Kas Seat at $5,000/mo (2 months to fill) | $5,000 x 2 | $10,000 |
| Kas Seat at $8,000/mo (2 months) | $8,000 x 2 | $16,000 |
On a single AE, Kas Milestone Search example fee is about 5x cheaper than mid-range contingency. Fractional wins harder when that same retainer also fills an SDR and a second AE in the same window.
Example B: VP of Sales, $350,000 OTE
| Fee model | Math | You pay |
|---|---|---|
| Contingency @ 20% | 0.20 x $350,000 | $70,000 |
| Contingency @ 25% | 0.25 x $350,000 | $87,500 |
| Contingency @ 30% | 0.30 x $350,000 | $105,000 |
| Kas Seat at $8,000/mo (3 months GTM bandwidth) | $8,000 x 3 | $24,000 (bandwidth; leadership still calibrated as specialist work) |
| Kas Director/VP/CRO search | Specialist / retained quote | Quote only (no Milestone Search example fee) |
VP / CRO searches are specialist/retained bandwidth, not a commodity contingency race and not a Milestone Search example fee.
Takeaway: Contingency on leadership OTE is where founders get surprised. A $350k VP at 25% is an $87.5k invoice. Three months of Kas Seat at $8,000/mo is $24k with zero success fee, and that bandwidth can keep an AE/SDR pipeline warm while leadership runs on a specialist quote.
Multiple hires: where the gap widens
Seed/Series A plan: 1 AE + 1 SDR over ~3 months. How to sequence those first hires: fractional recruiting for startups.
| Path | Cost math | Total |
|---|---|---|
| Contingency @ 25% | AE $150k -> $37,500 + SDR $80k OTE -> $20,000 | $57,500 |
| Kas Milestone example fees | AE $7,500 + SDR $5,000 | $12,500 |
| Kas Seat at $5,000/mo x 3 months | $5,000 x 3 | $15,000 |
Scaling plan (Series A to B): 3 AEs + 2 SDRs over 4 months.
| Path | Approximate total |
|---|---|
| Contingency @ 25% on $150k AE x3 + $80k SDR x2 | $152,500 |
| Kas Milestone example fees ($7.5k x3 + $5k x2) | $32,500 |
| Kas Seat at $8,000/mo x 4 months ($8k x4) | $32,000 |
This is where fractional stops being a nice option and becomes the default for GTM builders. Sticker home: cost.
When fractional wins vs contingency
Fractional wins when
- You are hiring 2+ GTM seats in a quarter
- Role quality matters more than resume spray
- You want predictable monthly spend you can pause
- You need a partner who already knows SaaS sales motions
Contingency still wins when
- One backfill AE and no other GTM hiring for 6+ months
- Role is well-defined, market is liquid, and speed-to-slate is the only KPI
- Budget politics require "$0 until hire," even if the eventual invoice is larger
A contingency firm can fill a mid-market AE from LinkedIn volume. They are a weaker fit when you need an AE who has closed your ACV band in your cycle length, or a VP who has built founder-led to manager-led. That needs embedded calibration (fractional for GTM seats, specialist/retained for VP), not a 25% race.
Decision tree by stage and seniority
| Signal | Prefer |
|---|---|
| 1 seat, low urgency, clear JD | Contingency or Kas Milestone Search example fee ($5k to $10k through Sales Manager) |
| 1 senior IC/manager seat (Sr AE, SM), high urgency | Kas fractional or Milestone Search example fee |
| 2 to 5 GTM seats, Seed through Series B | Kas Seat ($5,000 to $8,000 a month, up to $10,000 for senior AE and above) |
| First VP Sales / sales leader | Specialist / retained quote |
| One-off AE backfill only | Contingency or Kas AE fee $7,500 |
Need headcount math instead? vs in-house.
FAQ: fractional sales recruiting vs contingency
Is fractional sales recruiting cheaper than contingency?
Usually yes once you hire more than one GTM seat, or any senior seat with a large OTE. A $150k AE at 25% contingency is $37,500. Kas Milestone AE example fee is $7,500. Kas Seat is $5,000 to $8,000 a month, up to $10,000 for senior AE and above, with zero success fees.
What is the industry-standard contingency fee for sales roles?
Most contingency firms charge about 20 to 30% of first-year cash (some use OTE). Always confirm whether the base is cash or OTE before you sign. OTE-based fees on AEs and VPs cost more.
Can I pause a fractional sales recruiting retainer?
Yes. Kas Seat is month-to-month. Pause when hiring stops. Resume when the next GTM seat opens.
When should I use a Milestone Search example fee instead of fractional?
Use Milestone Search example fees (SDR $5,000 / AE $7,500 / Senior AE or Sales Manager $10,000) when you have a single clear seat through Sales Manager. Director, VP, and CRO are quote only. Use fractional when you are staffing a motion, not a req.
Does contingency include a guarantee?
Varies by firm. Kas placement guarantee is a 60-day re-hunt, not a refund. For AE/SDR/Sales Manager under fractional: 3+ qualified candidates in 3 weeks or we keep hunting free. Free market scan in 48 to 72 hours. Those IC/manager guarantees are not promised for Director, VP, or CRO.
Is fractional the same as retained executive search?
Related but not identical. Retained search is usually a project fee for one senior seat. Fractional is a rolling monthly partnership that can cover multiple GTM roles. Primer: fractional recruiting guide.
Related guides
Want the fee math on your actual packages?
Email [email protected]. Bring open AE/SDR/VP seats and target OTEs. For AE/SDR/SM under fractional, market scan lands in 48 to 72 hours. We run the fee math on your package, not a generic table.
About The Kas Group
The Kas Group (TKS) is an elite B2B SaaS sales recruiting firm founded in 2014. We place sales talent from SDR through VP Sales and CRO for high-growth technology companies.
- Website: https://www.thekasgroup.com
- Email: [email protected]
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