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Comment by wasd | Hacker News Reader

> As for their revenue model, TripleByte takes a 25 percent cut of an engineer’s first-year salary, which is a fairly typical model for recruiting agencies.

Hey Harj,

Do you think that by charging a flat % of the first year salary that TripleByte might be adding downward pressure on the potential salary for an engineer?

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I think the upwards pressure from companies not being able to hire enough good engineers is likely a much stronger force. That being said, we're not tied to the % model. We plan to experiment with both our selection process and pricing to figure out what works best.

One cool innovation I've seen is converting from a % upfront model to a % recurring model (Ex. instead of 25% upfront convert to 2% over 12 months).

It benefits start-ups because they don't have a large cash outlay at once and aligns the incentives of the firm to find great candidates that will stick. It also creates a more predictable revenue stream in the form of monthly recurring revenue.

We think that's a great idea and something we're looking at too, especially for startups with less funding.

If you don't have the network and you need a recruiter (as I have in the past and will again), the 25% is how much you give up for the help getting a job.

If a jobseeker won't see that kind of value from a recruiter, they can always take it on themselves.

from the employee or employer?

employer

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