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A split fee turns two desks into one.

Half a fee beats a placement that never happened.

A split fee lets one agency's candidate meet another agency's client, both sides paid from a single placement fee, once a split fee agreement is signed and the rules are set before any name changes hands.

recruiter-lexikon / split-fee
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Split fee
Split fee
Defined
Definition

An arrangement where two recruitment agencies share a placement fee, one holding the candidate and the other the client relationship, set out in a split fee agreement signed before either side's details are exchanged.

At a glance
Term Split fee
Used for Sharing a placement fee across two agencies
In boilr Tracked like any other mandate
b
boilr turns this term into a task
Defined here · operationalised by your AI employee

Split fee, explained for the desk.

What it is, why it matters, and how your AI employee runs it.

What it is

A split fee arrangement is when two recruitment agencies collaborate on a single placement instead of competing for it. One agency, often called the client-side or job order recruiter, holds the mandate and the relationship with the hiring company. The other, the candidate-side recruiter, holds a suitable applicant, usually sourced from its own pipeline or a niche network. Between them they fill a role that neither could have filled alone, and the placement fee the client pays is divided between the two agencies rather than kept by one.

The default split is 50/50, though 60/40 in favour of the client-side agency is common too, on the argument that a client relationship is harder to build and defend than a single candidate. Independent recruiters and smaller agencies often work splits through dedicated networks such as Top Echelon, NPAworldwide or EK Talent Exchange, which broker introductions between members and take a small brokerage cut, typically around 6 percent, off the top. What makes any split enforceable is the split fee agreement itself, the document that fixes the percentage, the ownership of the candidate and the client, and the rules for the handoff, and it is signed before either side's confidential details are exchanged, not after.

The agreement gets signed before the candidate's name does. Never after.

Why it matters

A split turns "I don't have anyone for that" or "I don't have a live mandate for you" into a placement instead of a dead end. An agency sitting on a strong candidate with no matching brief, or a client relationship with no candidate to offer, can still bill by pairing up with someone who has the other half. For a niche desk or a solo recruiter, splits meaningfully widen the addressable market without adding headcount or reach into unfamiliar territory.

The risk sits entirely in trust. Once a candidate-side agency reveals who its candidate is, or a client-side agency reveals who its client is, the other party technically has enough information to go direct and keep the whole fee. That is exactly what a signed split fee agreement, usually including a non-circumvention clause, exists to prevent. Splits done on a handshake, after names have already changed hands, are where most disputes over ownership and payment start.

How boilr handles it

boilr does not run a split network or draft the agreement, that stays a relationship between the two agencies, but it makes sure a split mandate is worked exactly like any other account once it lands on your desk. Because your ICP and live buying signals are already telling you which client relationships you own and which mandates are actually moving, it is easy to see the moment an inbound candidate from a split partner does not fit anything you are currently running, which is precisely when a split is worth proposing instead of passing.

Once a split is agreed, the mandate is tracked through the BD pipeline like any other job order, and the terms, whose client it is, whose candidate it is, and the agreed percentage, sit in the Company Brain alongside the rest of that account's commercial detail. Nobody on the desk has to remember a side arrangement from memory, and the split shows up correctly when it is time to invoice, not as a surprise.

Questions, answered.

Everything a working consultant asks about split fee, and how boilr puts it to work.

What is the difference between a split fee and a referral fee?

A referral fee is usually a flat, one-off payment for pointing a candidate or client towards another agency, with no further involvement. A split fee is a genuine partnership: both agencies stay involved, one running the client relationship and one running the candidate, and both share directly in the placement fee rather than one paying the other a token amount.

Who decides the split percentage?

The two agencies negotiate it before the placement, and it is written into the split fee agreement. 50/50 is the most common default. A 60/40 split in favour of the client-side agency is also widely used, on the basis that winning and keeping the client relationship is harder than sourcing one candidate.

Why does the agreement need to be signed before candidate details are shared?

Because once a candidate's name or a client's name is known, the party who now has that information could, in theory, go direct and keep the entire fee. A signed agreement, usually with a non-circumvention clause, fixes the split and the ownership before that risk exists, which is why reputable split partnerships never share names first and agree terms after.

What happens if one agency goes direct after a split introduction?

It is a breach of the split fee agreement and, if the agencies work through a formal network such as Top Echelon or NPAworldwide, usually grounds for expulsion from that network as well as a commercial dispute. It is the single fastest way to destroy a split relationship, which is why the agreement exists before any names are exchanged, not as an afterthought.

How does boilr use split fee in practice?

boilr does not broker the split itself, but once a candidate from a split partner does not match a mandate you're actively running, that gap is visible the same way any other ICP mismatch is. Once a split is agreed, boilr tracks the mandate through the BD pipeline and keeps the ownership and split terms in the Company Brain, so the arrangement is worked and invoiced correctly rather than remembered informally.

Helen Wright
Boilr gave us the BD structure and follow-up support to sign our first client and secure a job brief in under a month.
Helen Wright
Managing Director, 923 Jobs

Turn a spare candidate into a placement.

boilr tracks split mandates through the BD pipeline and keeps ownership and terms in the Company Brain, so a split gets worked and paid correctly. One AI sales employee per consultant, keeping every mandate, split or not, moving.