min read

Top 8 costs to consider when becoming a freelance recruiter

The costs you should consider when starting out as a freelance recruiter.

September 29, 2020
Olly Keell
January 29, 2024

Becoming a freelance recruiter can be lucrative and fulfilling, but it's crucial to understand the financial aspects before diving in. Beyond the freedom and flexibility, there are several expenses associated with running your own recruitment business. In this blog post, we'll outline everything that freelance recruiters should consider when starting out.

  1. Business Registration
  2. Hardware
  3. Recruitment Software
  4. Marketing
  5. Learning
  6. Bounty Platforms
  7. Legal
  8. Accounting

Business Registration

Before beginning your freelance recruitment business, you may need to register your venture and obtain the necessary licenses and permits depending on where you are in the world. It's important to research the requirements in your area and allocate funds (if any) accordingly. For example, If you're in the UK, you might want to consider setting up as a freelancer, or if you are in the US, you would need to include anything you make over $400 dollars in your annual tax return. More info on setting up in the US can be found here.

Costs: Mainly Free

Top Tip: As a freelancer, embrace the WFA revolution and consider setting up somewhere that has the best infrastructure for freelancers.


Setting up a dedicated workspace is crucial for productivity and professionalism. Transitioning from working in an office to working from home or remotely can be challenging at first, especially on a productivity level. 

Consider the costs of getting professional WFH equipment like a second monitor, a professional webcam, and a desk.

Costs: $150 - $300 (one-off) 

Top Tip: Invest in a second monitor (you’ll thank me later) 

Recruitment Software

One of the most important things as a recruiter is having a top CRM or ATS to manage candidates, track applications, and streamline your workflow. Research the various options available, compare prices, and choose a software solution that aligns with your specific needs and budget. Luckily, there are many out there that cater to small teams and one-man bands.

You will also need to associate yourself with platforms that have candidates within your niche. More on that can be found here.

Costs: $200 Monthly

Top Tip: Consider signing up for HeroHunt.ai, as you can find tons of candidates across the biggest platforms for a fraction of the price of LinkedIn recruiter.


To attract the best clients who will be paying you on a retainer basis, you'll need to invest in advertising and marketing efforts to get your brand name out there. The first step you may want to consider is creating a professional website, where clients can discover the range of services you offer, what you've done in the past, and a form of contact.

After you have your website, you can move on to utilizing social media platforms, and communities of your target audience.

Costs: $30 Per month

Top Tip: Consider using Wix as they are great for those just starting out.


As a freelance recruiter, staying updated with industry trends, best practices, and legal requirements is essential. Make sure that every 3 months you're attending workshops, webinars, conferences, or studying online courses to enhance your skills and stay ahead of the competition.

Costs: Mainly Free

Top Tip: Check out LinkedIn Learning or Coursera as they offer many free resources.

Bounty Platforms

There are many platforms out there that allow freelance recruiters to sign up, send candidates to open roles, and earn bounties. Signing up for these platforms is beneficial for your success as a freelance recruiter. 

Cost: Free

Top Tip: Check out our blog on getting started on bounty platforms.


It's important to cover your back at all times. Consulting with an attorney specializing in employment and business law can help ensure your business contracts are legally compliant. Allocate funds for legal advice and document drafting, including contracts with clients, candidates, and subcontractors.

Cost: $30 - $100 per hour

Top Tip: Platforms like Upwork and PeoplePerHour have expert lawyers you can hire on an hourly basis.


Accounting software provides robust reporting capabilities, allowing you to generate financial statements and reports quickly. These reports offer valuable insights into your business's financial performance, including revenue, expenses, and profitability. Analyzing these reports helps you make informed decisions, identify areas for improvement, and set financial goals.

Cost: $13 per month

Top Tip: Freshbooks and Zoho are great for freelancers.

Starting a freelance recruitment business can come with its overheads, but with everything considered, you can better estimate the total cost of being a freelance recruiter. Remember to budget for both the initial setup costs and ongoing operational expenses to ensure your business thrives in the long run.

More content like this

Sign up and receive the best new tech recruiting content weekly.
Thank you! Fresh tech recruiting content coming your way 🧠
Oops! Something went wrong while submitting the form.

Latest Articles

Candidates hired on autopilot

Get qualified and interested candidates in your mailbox with zero effort.

1 billion reach
Automated recruitment
Save 95% time