What's the main difference between contingency and retained search?

Contingency search means the recruiting firm is paid only if and when they successfully place a candidate who is hired. Retained search means the client pays the firm in installments over the course of the search, typically starting with an upfront retainer, regardless of whether a specific candidate is ultimately placed. The fee structure changes the incentive and risk profile on both sides: contingency shifts more risk to the recruiter, while retained shifts more risk and commitment to the client in exchange for dedicated, exclusive attention.

Is retained search better quality than contingency?

Not inherently. Retained search is often positioned as higher-touch because the client is paying regardless of outcome, which theoretically buys more dedicated time and a more exhaustive process. But for most Director and VP-level eCommerce roles, a specialized contingency firm with a genuine passive-candidate network can deliver comparable quality and speed, since candidate quality depends more on the firm's specialization and network depth than on which fee model is used. Retained search tends to earn its premium on the most senior, confidential, or genuinely hard-to-fill searches, not as a blanket guarantee of better candidates.

Why do most eCommerce recruiting firms work on contingency?

Most eCommerce leadership roles, from Manager through VP, sit in a segment where a specialized firm with a strong passive-candidate network can run an efficient search without needing an upfront retainer to justify the effort. Contingency also aligns cleanly with how most growth-stage and mid-market eCommerce companies want to buy recruiting: pay only for the outcome. Retained search becomes more common at the very top of the org chart (CEO, CFO, or board-level hires) or for searches requiring unusual confidentiality, where the scope and risk profile are different.

When should a company use retained search for an eCommerce hire?

Retained search is worth considering for the most senior or sensitive eCommerce hires, such as a Chief Digital Officer or Chief Revenue Officer search that needs to stay confidential from the existing team, a role where the candidate pool is genuinely tiny and requires unusually exhaustive outreach, or a search where the cost of failure is so high that guaranteed dedicated attention outweighs the added upfront cost. For the large majority of Director and VP of eCommerce searches, a specialized contingency firm is a reasonable and more cost-aligned choice.

Can a contingency search be made exclusive?

Yes. Exclusive contingency is a middle-ground model where the client commits to working with a single recruiting firm for a defined period, and the firm is paid only upon placement, without an upfront retainer. This can improve a recruiter's prioritization and communication compared to non-exclusive contingency, without the client taking on the upfront financial commitment of a full retained search. It is worth asking any contingency firm whether they offer this option for a search you consider especially important.

Contingency vs. Retained Search: Which Is Right for Your eCommerce Hire?

Most hiring managers have heard both terms, contingency and retained search, without ever getting a clear answer on what actually separates them, or which one makes sense for an eCommerce leadership hire specifically. Generic explanations from the broader recruiting industry do not always translate cleanly, since the calculus shifts once you are hiring for roles that are genuinely eCommerce-specific rather than a generic executive search.

The short version: the two models differ in when the recruiter gets paid, how exclusive the engagement is, and how much risk each side carries. Here is what that actually means in practice.

Contingency vs. Retained, Side by Side

Factor	Contingency	Retained
When you pay	Only upon a successful placement	In installments over the search, often starting with an upfront retainer
Typical fee	Roughly 15% to 25% of first-year base salary	Roughly 25% to 35%+ of first-year base salary, sometimes with a minimum fee regardless of salary
Exclusivity	Often non-exclusive, though exclusive contingency is available from some firms	Always exclusive: one firm, one search
Who bears the risk	Mostly the recruiter; no placement generally means no fee	Mostly the client; fees are owed regardless of whether the search succeeds
Best fit	Most Director and VP-level eCommerce roles	C-suite, board-level, or highly confidential searches
Typical timeline	4 to 10 weeks for most eCommerce leadership roles	Often longer, given a more exhaustive, exclusive process

When Contingency Makes Sense

For the large majority of eCommerce hiring, from Manager through VP of eCommerce, contingency is the more common and, in most cases, the more cost-aligned choice. You are paying for an outcome, not for time spent, which means the financial risk if a search does not pan out sits with the recruiting firm rather than with you. A specialized eCommerce contingency firm with a genuine passive-candidate network can typically move just as fast as a retained firm for these levels, without the upfront financial commitment.

When Retained Search Makes Sense

Retained search earns its premium in a narrower set of situations: a CEO, CFO, or Chief Digital Officer search that needs to stay confidential from your existing team, a role where the realistic candidate pool is genuinely tiny and requires unusually exhaustive, patient outreach, or a hire so consequential that guaranteed dedicated attention is worth paying for even before you know the outcome. Outside of those situations, retained search is often paying a premium for exclusivity you could get more cheaply through an exclusive contingency arrangement instead.

A question worth asking any firm

"If I'm not comfortable with a full retainer, can we still make this exclusive?"

Exclusive contingency, where you commit to one firm for a defined period but only pay upon placement, is a middle ground many hiring managers do not realize exists. It can improve a recruiter's prioritization of your search without requiring the upfront financial commitment of a full retainer.

The Real Decision Isn't the Label, It's the Fit

The words "contingency" and "retained" describe a payment structure, not a guarantee of quality. A generalist retained firm without real eCommerce depth will still struggle to evaluate whether a VP of eCommerce candidate has the right balance of strategy and execution for your business. A specialized contingency firm with a strong passive-candidate network will often outperform a generalist retained firm on both speed and candidate quality, despite the lower fee and lower upfront commitment.

Before comparing fee models, it is worth confirming the firm's actual eCommerce specialization first. The fee structure only matters once you know you are choosing between firms that can genuinely do the work.

For a broader framework on evaluating specialization itself, see our post on how to choose an eCommerce recruiting firm. And if you are trying to figure out whether this is even the right time to make the hire in the first place, our post on signs you need a VP of eCommerce is a useful starting point. When you are ready to talk specifics, reach out directly or learn more about our approach on the direct hire recruiting page.