The problem with eyeballed fees
Most agencies calculate their fees the same way: whatever they charged last time, plus or minus something depending on the client. The result is inconsistent, hard to defend, and almost always leaves money on the table.
Market ranges in Mexico run from 15% to 35% of the candidate's gross annual salary. That range is not random, it reflects real differences in the value delivered, the niche, and the risk the agency takes on.
The 4 factors that set your fee
- Profile specialisation: a generalist Revenue Analyst is not worth the same as a Head of Revenue with B2B SaaS experience. The more specific, the higher the justified fee.
- Client urgency: if the role has been open 3 months and the business needs it now, your fee can carry an urgency component.
- Volume and continuity: a client with 8 roles a year negotiates differently from one with a single annual role.
- Your cost to operate: if you do not know what it costs you to open and close a role, you cannot know whether an 18% fee leaves you a margin.
The 4 steps
Step 1: calculate your base cost per role. For a 3-person agency in Mexico it is usually between $800 and $1,500 USD per role.
Step 2: set your minimum margin. The fee must cover the base cost plus a margin that justifies the contingency risk. A reasonable minimum is 2.5x the base cost.
Step 3: position against the market. Research what other agencies charge for the same profile, not to lower your price but to know where you stand and be able to justify it.
Step 4: structure the pitch. Never present the percentage cold. Present the context: "For this profile in LATAM, the market range is 20-28%. We work at 22% because we do X, Y and Z."
The floor you should not cross
On manager-level roles and above in Mexico, a fee below 18% starts to compromise your operation. On senior roles (VP, Director, C-level), the sustainable range is between 22% and 30%.