Professional Services · Margin on Placement

The Staffing Agency

A staffing agency earns the spread between what a client is billed and what the placed worker is paid. You are not selling your own hours; you are building a recruiting engine, a candidate pipeline, and a book of clients whose open requisitions you can fill faster than anyone else. Get the bill/pay spread and the fill rate right and it is one of the most scalable cash-flow services in America.

$1M-$10M typical revenueMargin on the bill/pay spreadFill rate is the whole gameTemp-to-perm fees are the upside
Read the launch plan: every step from deciding to opening, free →
01

The Snapshot

Is this worth your attention?

$1M to $10M
Typical annual revenue
2-10 recruiter desks
8% to 15%
Owner cash margin (SDE)
share of sales the owner keeps before their own pay
$37k to $241k
Cost to open
office, insurance deposits, launch; typical about $85k
1-3 yrs
Typical payback
faster with a portable book of clients
Medium-High
Day-to-day difficulty
sales, recruiting & payroll intensive
Medium
Absentee potential
once recruiters run their own desks

Cited sources Typical bands for this kind of business, compiled from the public sources listed under Sources and method; they are a synthesis, not figures copied from any one source. Estimates, not forecasts; a specific business varies with its location, lease, equipment and owner. Last reviewed 2026-07-07. smbnest is a self-assessment tool, not individualized advice.

A fit if you…

  • Can sell into clients and win open requisitions
  • Can recruit, screen, and place candidates fast
  • Want margin on the spread rather than your own hours
  • Can fund worker payroll before the client pays you
  • Run tight on fill rate, time-to-fill, and margin discipline

Probably not if you…

  • Want a hands-off business from day one
  • Dislike sales, recruiting, and chasing requisitions
  • Can not float payroll on a gap between pay and collection
  • Expect fat margins without filling reqs fast
02

Step Inside the Layout

A live look at one tool inside

This is the actual 3D floor from the full model. Drag to explore it. Inside, you configure the space yourself and watch the economics move with every choice.

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Sources and method9 public sources, with the year and a link where the source gives one. The benchmark bands are smbnest's synthesis of these sources, not figures copied from them.

Sources & Method

Figures are compiled from the public sources below; the bands are a synthesis of them, not copies

How these numbers were built: recruiter wages and the labor pool come from the U.S. Bureau of Labor Statistics (OEWS for SOC 13-1071, Human Resources Specialists and Recruiters); establishment counts and fragmentation come from the U.S. Census Bureau (County Business Patterns for NAICS 5613, Employment Services); industry market size and direction come, as a secondary anchor, from American Staffing Association data; financing terms and the size standard come from the SBA; and cross-industry survival rates come from BLS Business Employment Dynamics. Every source below links to the underlying material so you can check any figure yourself. These are starting assumptions; the moment you enter a real agency’s placements, bill and pay rates, recruiter count, and overhead, your numbers should replace ours. Figures are current as of 2024-2026 and refreshed as the sources update.

The bill/pay spread and fill-rate figures are anchored to American Staffing Association industry data (a secondary industry source, not a government dataset); recruiter compensation figures are sourced to BLS OEWS. The owner cash flow (SDE) band on total billings runs from Ad Astra Equity's 8 to 12% EBITDA for general staffing up to the low end of BizBuySell's yearly SDE medians for sold agencies; BizBuySell's industry financials show about 25% gross margin and 3% net after officer pay. Payroll burden is anchored to Crelate's worked burden rate. Owner cash flow on billings is shown separately from gross margin on billings because the two tell very different stories in this pass-through-heavy model.

Government data
U.S. Bureau of Labor Statistics · 2024
OEWS: Human Resources Specialists & Recruiters (SOC 13-1071); wages and employment
https://www.bls.gov/oes/current/oes131071.htm
U.S. Census Bureau · 2022
County Business Patterns: Employment Services (NAICS 5613)
https://www.census.gov/programs-surveys/cbp.html
U.S. Small Business Administration · 2026
7(a) loan program & size standards (NAICS 5613)
https://www.sba.gov/funding-programs/loans/7a-loans
U.S. Bureau of Labor Statistics · 2024
Business Employment Dynamics: business survival rates
https://www.bls.gov/bdm/
Industry
American Staffing Association (industry data; secondary) · 2024
Staffing industry market size, placements, and segment trends
https://americanstaffing.net/research/
Crelate · 2025
How to calculate your staffing agency’s burden rate and bill rate
https://www.crelate.com/blog/staffing-burden-rate-bill-rate
Market & valuation
BizBuySell · 2026
Staffing agency valuation benchmarks: SDE as a share of revenue and sale multiples for agencies sold 2021 to 2025
https://www.bizbuysell.com/learning-center/valuation-benchmarks/staffing-agency/
BizBuySell · 2021
Staffing agencies revenue and profit benchmarks (NAICS 561311 and 561312): gross margin and net profit
https://www.bizbuysell.com/learning-center/revenue-profit-benchmarks/staffing-agencies
Ad Astra Equity (M&A advisor) · 2026
What is my staffing company worth: gross margin, EBITDA margin and multiples by staffing type
https://www.adastraequity.com/what-is-my-business-worth/staffing-company

This is just the surface

The full model is the complete, interactive deep-dive, and every business here is built to the same standard: a live economics simulator you tune to your own numbers, an interactive 3D walkthrough, a location scorecard, an owner-fit assessment, a buy-versus-build comparison, and the full breakdown of how it makes money and what quietly kills margin.

Monthly
$99 for your first 3 months

then $29 a month

Time to choose and start, then month to month.

$99 today for your first 3 months, then $29 a month until you cancel.

YearlyBest price
$199 a year

about $17 a month

The best price: a year to decide, open and run it.

$199 today, then $199 each year until you cancel.

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smbnest is a self-assessment tool. It does not give individualized financial, investment, legal or tax advice. Figures are estimates and benchmarks, not forecasts. Speak with a qualified financial adviser and a licensed attorney before you start, buy, finance or sign anything.