How does a split placement work between recruiters?
A split placement is when two recruiters share one placement fee: one holds the job order from the client and the other supplies the candidate. A 50/50 split is common, but the share is whatever the two recruiters agree in writing before submitting the candidate. The client still pays one fee.
General business practice as of 31 October 2026.
At a glance
- Split = job-holder side plus candidate side. Each earns a share of one client fee.
- Agree the percentage, who invoices, the payment timing and the guarantee treatment before any candidate is submitted.
- If the placement falls through, the share of any refund should follow the same split.
- Independent recruiters are self-employed, so each handles their own tax. See how to become an independent recruiter.
How does the money move?
- The client pays the fee to the recruiter who holds the client agreement.
- That recruiter pays the partner their share after the client pays.
- Each recruiter pays their own costs and taxes.
Worked example (illustrative). Fee USD 24,000 (20 percent of a USD 120,000 base). On a 50/50 split each recruiter receives USD 12,000. On a 60/40 split favoring the job-holder, the shares are USD 14,400 and USD 9,600. More worked examples are in commission structures.
What should the split agreement say?
| Clause | What to write |
|---|---|
| Parties and roles | Who holds the job order, who supplies the candidate |
| Split | Percentage for each side |
| Trigger | Fee is earned when the candidate starts, and the partner is paid after the client pays |
| Payment timing | Number of days after the client pays |
| Guarantee | How refunds or replacements are shared. See guarantee periods |
| Exclusivity | Who may contact the candidate and client |
| Candidate ownership | A candidate submitted by you stays yours for a set period |
| Confidentiality | Candidate and client information stays private |
| Dispute handling | Who decides, which state's law applies |
How do you avoid disputes?
- Write the agreement before the first submission, by email at minimum.
- Submit the candidate by a traceable method with the date.
- Keep a log of who contacted whom.
- Do not contact the other side's client without permission.
- Pay on time, and share the client's payment confirmation.
Is it fair for the client?
The client should not pay more because two recruiters are involved. Tell the client who is involved and make sure the client agreement allows a split partner.
FAQ
Is 50/50 the standard? It is common, not required. Pick the split that matches the work each side does.
Can I split with a recruiter I have not met? You can, but use a written agreement and keep it short and clear.
What if the client hires the candidate directly? Your agreement with the client should include a protection period. See the fee agreement template.
Sources
- IRS, Independent Contractor (Self-Employed) or Employee - https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee (accessed 31 October 2026)
- LiveRec editorial: split terms are agreed between recruiters in writing; clause examples in /recruiting/commission-structure (accessed 31 October 2026)
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.