Why This Tech Startup Ditched Agencies and Saved $40K in Placement Fees

Craig Danvers

The Challenge: High Recruitment Costs with Little Control

A growing tech startup was rapidly expanding but frustrated by the cost and unpredictability of agency hiring. Their key challenges included:

  • Excessive placement fees—20–25% per hire was unsustainable.

  • Inconsistent candidate quality—agencies often focused on speed, not fit.

  • Lack of control—external recruiters weren’t embedded in their business.

With multiple hires planned, they needed a solution that gave them more say in their hiring process without burning through their budget.

The Solution: A Cost-Effective, Hands-On Approach

Instead of relying on agencies, the startup opted for our on-demand talent acquisition model. This gave them:

  • A dedicated recruiter who acted as an extension of their team.

  • Fixed monthly pricing rather than unpredictable placement fees.

  • More control over the hiring process, ensuring better candidate alignment.

We worked directly with their hiring managers to fine-tune job briefs, proactively source candidates, and handle screening—without the rush of contingency-based recruitment.

The Results: More Hires, Lower Costs, and Better Fit

Over six months, we helped the startup:

  • Fill 8 key roles, including engineers, product managers, and sales hires.

  • Save over $40K compared to what they would have spent on agency fees.

  • Build a repeatable hiring process, reducing reliance on external recruiters.

By shifting to an embedded, on-demand model, they gained higher-quality hires at a lower cost—without sacrificing speed or efficiency.

Key Takeaways

For scaling startups, agency fees can quickly add up. A flexible, in-house-style recruitment model provides:

  • Significant cost savings—no more paying per placement.

  • Better hiring outcomes—candidates are sourced with long-term fit in mind.

  • A repeatable process—so future hires become easier and more efficient.

For this startup, ditching agencies didn’t mean compromising on quality. It meant taking back control of their hiring while saving thousands in the process.

Next Case Study: From 6 Months to 6 Weeks: How We Helped a Data Company Fill a Critical Role Faster

Ready To Ditch Placement Fees Forever?

  • Only pay when you’re hiring, pause anytime.

  • No commissions, no contracts, fixed pricing.

  • Expert support without hiring a full-time recruiter.

  • Fast, flexible and affordable hiring for growing teams.

Ready To Ditch Placement Fees Forever?

  • Only pay when you’re hiring, pause anytime.

  • No commissions, no contracts, fixed pricing.

  • Expert support without hiring a full-time recruiter.

  • Fast, flexible and affordable hiring for growing teams.

Ready To Ditch Placement Fees Forever?

  • Only pay when you’re hiring, pause anytime.

  • No commissions, no contracts, fixed pricing.

  • Expert support without hiring a full-time recruiter.

  • Fast, flexible and affordable hiring for growing teams.

Ready To Ditch Placement Fees Forever?

  • Only pay when you’re hiring, pause anytime.

  • No commissions, no contracts, fixed pricing.

  • Expert support without hiring a full-time recruiter.

  • Fast, flexible and affordable hiring for growing teams.

Ready To Ditch Placement Fees Forever?

  • Only pay when you’re hiring, pause anytime.

  • No commissions, no contracts, fixed pricing.

  • Expert support without hiring a full-time recruiter.

  • Fast, flexible and affordable hiring for growing teams.

Ready To Ditch Placement Fees Forever?

  • Only pay when you’re hiring, pause anytime.

  • No commissions, no contracts, fixed pricing.

  • Expert support without hiring a full-time recruiter.

  • Fast, flexible and affordable hiring for growing teams.