Start a Split-Fee and Co-Brokered Placement Business

1. 1

   Understand the two-sided model

   A split-fee or co-brokered placement is a partnership between two agencies: one holds the job order (the sell side), the other holds the candidate (the recruit side), and when the placement is made they share the fee on a pre-negotiated basis. It exists because client relationships and candidate pipelines are rarely held equally by one agency, so each side monetizes what it has while covering what it lacks.

2. 2

   Get the agreement in writing before anything moves

   Every split must be governed by a written co-brokering agreement, signed before any candidate is submitted, that defines the split percentage, payment terms and timeline, who owns the client relationship, confidentiality, and dispute resolution. Skipping this is the most common reason split arrangements collapse after a placement is made. Have a split-fee placement agreement reviewed by an attorney.

3. 3

   Set the split and the boundaries

   Standard splits are 50/50, though 60/40 in favor of the job-order holder is common when contribution is unequal, because client ownership carries more long-term value. Define clearly which agency communicates with the client and which manages the candidate; blurred lines damage relationships and put the placement at risk. The job-order agency owns the client, and a partner must never go around you to solicit them.

4. 4

   Find and vet partners

   Look for complementary agencies (same candidate market or client type, different geography, specialty, or footprint) whose strengths fill your gaps. Use established split networks and boards such as Top Echelon and NPAworldwide, plus recruiter communities, where agencies post job orders and candidates for co-brokering. Vet a partner's reputation before sharing anything, because a bad partner can damage your client and candidate relationships.

5. 5

   Build a reciprocal pipeline over time

   The most valuable split relationships are not one-off; they are consistent, reciprocal exchanges where both agencies share relevant orders and candidates as they come in. Start with one shared order to test the collaboration, honor your agreements and pay promptly to build reputation on the split board, and turn a single clean placement into a reliable revenue stream and a genuine alliance. Your reputation is an asset you build or burn one placement at a time.

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Best for: Recruiters with strong candidate inventory or client relationships, but not both

Not for: Not for an agency that wants to build its whole revenue on splits, since you share half the fee and the volume is opportunistic rather than predictable. Not for anyone who will skip the written agreement, because that is exactly where split arrangements fall apart. And not for operators who will not protect the partner relationship, since going around a partner to their client ends the alliance and your reputation on the split board.