How do recruiters make their money?

Recruiters are paid by the companies that use them to find candidates. Their compensation depends on a few factors. Recruiters who are on a company’s payroll are called “internal recruiters.” Internal recruiters are part of the company’s human resources staff and are paid an annual salary as compensation for their work. Contract recruiters who work for a recruiting agency or who are self-employed earn a fee from client companies for each successful placement of a candidate. Internal recruiters often make less overall than external recruiters who work as contractors with several client companies.