Lemonade vs a recruitment agency
Agencies take a percentage of salary when you hire. Lemonade (makelemonade.io) charges a fixed fee per search.
Is Lemonade a good alternative to a recruitment agency?
Yes, for experienced hires. Lem, Lemonade's AI recruiter, sources, screens and introduces interested candidates, so whoever runs hiring only does the interviews. UK contingency agencies typically charge 10% to 30% of salary when your hire starts. Lemonade charges a fixed Search Fee and no hire fee, on any plan: first search free, then from £450, refunded if you don't interview any of our candidates. For temp or junior roles, choose an agency. Prices correct as of 21 October 2026.
By Ali Grant, founder of LemonadeUpdated Agency details checked
Choose Lemonade when...
- The hire needs more than five years' experience, where Lem works best, for a permanent, contract or fixed-term role.
- A fixed fee per search suits the budget better than a percentage of salary.
- The search should draw on Lemonade's talent pool, people Lem sources directly and applicants to your job posts.
- Only people who have confirmed their interest should reach the shortlist, scored with the reasoning shown.
Choose a recruitment agency when...
- The role is temp cover, or junior, hourly or high-volume.
- Paying only once someone starts matters on every role.
- Help with the offer and any counter-offer matters (ask whether the agency offers it).
- It is a board-level search, suited to an executive search firm.
At a glance
| Lemonade | A recruitment agency (contingency) | |
|---|---|---|
| How you pay | A fixed Search Fee per role for 30 days, set by salary band | A percentage of first-year salary, under some terms the whole package (Reed) |
| Fee on a £45,000 role | £450 (range tops out at £50k or below) | £6,750 at 15%; £9,000 at 20% (plus VAT) |
| Fee on a £75,000 role | £650 (range tops out between £50k and £100k) | £11,250 at 15%; £15,000 at 20% (plus VAT) |
| When you pay | Up front, before the search starts. First search free | When the person starts; invoices due in 7 to 30 days |
| If nobody is hired | Search Fee refunded if you don't interview any of our candidates (conditions below); if you interview but hire nobody, it is spent | Nothing to pay |
| Hiring someone introduced, later | No fee and no introduction window, for any role (Terms 4.4) | Under some terms, a fee if you engage them in any capacity within a year (Reed, clause 13) |
| If the hire leaves early | No hire fee, so nothing to rebate | A rebate or free replacement, commonly 8 to 12 weeks and sometimes up to 12 months, often void if the invoice is paid late (Reed, 808 Group, Aaron Wallis) |
| Who it reaches | Lemonade's talent pool, people Lem sources directly (LinkedIn, a people database of about a billion profiles) and applicants to your job posts | A database of job seekers helps on contingency (Agency Central); some proactively approach candidates on exclusive roles (Aaron Wallis) |
| Offers and closing | Not included: hand off to your ATS at in-person interviews | Varies: some advise on counter-offers (Gold Group); ask whether yours handles the offer |
Sources: Nigel Wright, Seedcamp, Reed, 808 Group, Aaron Wallis, Ashdown, Agency Central, Gold Group. Competitor details checked 21 October 2026.
Lemonade does not currently charge VAT (not VAT-registered).
What changes when Lem runs the search
A fixed fee that does not grow with the salary
An agency fee grows with the salary, not the work, and some terms charge on the whole package: Reed's include commission, bonuses and benefits. Lemonade's Search Fee is set by the top of the advertised salary range and fixed when you pay. It covers the hunt, the approaches, the screening and your job page.
No hire fee, and nothing owed on later hires
Lemonade has no hire fee, no placement fee and no introduction ownership window (Terms, clause 4.4). Hire two people from one search, or someone Lem introduced for a different role months later, and there is nothing more to pay.
Three sources, every day of the search
Lem hunts day and night across three sources: Lemonade's talent pool, people Lem sources directly and approaches by email and LinkedIn, and applicants to your job posts. Every applicant is screened against your brief too, including applicants to adverts you run yourself on Indeed or LinkedIn. Lem's matching is built on more than a million job matches and user feedback, and gets sharper as feedback comes in. Lem never approaches someone about a role at a company they have worked for.
Only interested candidates, with the reasoning shown
Every candidate is scored against your brief, and we show our reasoning, with a requirement checklist (met, partial, missing, unknown), strengths with evidence and gaps with severity. Only people who have confirmed their interest in your role reach your shortlist. Request an intro and we can connect you in minutes. Lem can also schedule interviews. Nobody Lem finds is turned down by software (How Lem stays fair).
Agencies win on risk: nothing to pay if nobody starts
With contingency, an unfilled role costs nothing. The first Lemonade search is free too; after that, the Search Fee is paid up front. It is refunded if you don't interview any of our candidates, but if you interview people and hire none of them, the fee is spent. Renewals are not refundable.
What it costs on a real role
The agency fees in the table are before VAT. Add 20% if you cannot reclaim VAT (GOV.UK): a 20% fee on an operations manager earning £45,000 becomes £10,800, against a Lemonade Search Fee of £450 if the advertised range tops out at £50,000. More published rates in what UK agencies charge.
That gap is behind our line "a recruiter, 90% cheaper", with a condition: for one 30-day search against a 15% fee, it holds from a £30,000 salary (£4,500 against £450). Below that it does not, and some agencies publish lower rates, such as 10% with a £2,495 minimum (808 Group).
When a recruitment agency is the better choice
- Temp and contract cover. Agencies supply interim and contract workers on an hourly or daily margin (Nigel Wright). Lemonade prices searches by annual salary.
- Junior, hourly or high-volume roles. Lem matches on career history, so it has less to go on with early-career candidates. An agency or job board is usually better.
- Help with the offer. Some agencies advise on counter-offers: Gold Group's client guide says the recruiter "will be able to help you in the process". Lemonade does not handle offers.
- Board-level searches. Seedcamp says executive search firms "are well placed to hire your future leaders", typically at 25% to 35%, with a fee up front.
Lemonade pricing
Prices correct as of 21 October 2026 (full pricing).
- First search free: 30 days, any salary, no card needed, one per company.
- Pay as you go: a Search Fee per role for 30 days of searching: £450 (salary up to £50k), £650 (£50k to £100k), £1,200 (above £100k). Another 30 days for £250 if needed.
- No hire fee, on any plan.
- Refund: we will refund your Search Fee if you don't interview any of our candidates. Pay-as-you-go roles only; claim within 14 days of the search ending; refunded to your original card within five working days.
- Plans: Team £990 a month (24 roles a year), Growth £1,800 a month (48 roles a year), on a 3-month minimum, or £825 and £1,500 a month on an annual plan; searches run until the role is filled.
- Optional LinkedIn promotion: charged at cost plus 5%; unspent budget is refunded, the 5% handling fee is not (at cost, no 5% fee, on plans).
Questions founders ask
What is the main difference between Lemonade and a recruitment agency?
An agency charges a percentage of salary when your hire starts; Lemonade charges a fixed Search Fee per role, with no hire fee. Legally, Lemonade operates as an employment agency, but Lem, Lemonade's AI recruiter, sources, screens and introduces interested candidates, and you see every score and its reasoning.
How much does a recruitment agency charge in the UK?
As of October 2026, UK agencies typically charge 10% to 30% of salary for a permanent hire (808 Group, Nigel Wright, Seedcamp), plus VAT, due when the person starts. Retained executive search runs 25% to 35%, partly up front. More in what UK agencies charge.
How much does Lemonade cost?
The first search is free. After that, £450, £650 or £1,200 per role for 30 days, by salary band, and £250 for another 30 days. No hire fee, on any plan. Prices correct as of 21 October 2026.
What happens if Lemonade doesn't find anyone I want to interview?
We will refund your Search Fee if you don't interview any of our candidates. It covers pay-as-you-go roles for the first 30 days; claim it from your portal within 14 days of the search ending. It does not cover the free first search, plan roles or renewals. See our Terms of Business.
Do I pay a fee if I hire someone Lemonade introduced?
No. There is no hire fee, no placement fee and no introduction ownership window (Terms, clause 4.4). Agency terms can differ: Reed's make a fee due if you engage an introduced candidate in any capacity within a year (clause 13).
Can I use Lemonade and an agency at the same time?
Yes. Lemonade is not exclusive (Terms, clause 6.1), so you can use agencies, job boards or your own channels at the same time. Lemonade has no hire fee and no introduction ownership window (clause 4.4), so you owe Lemonade nothing if you hire someone it introduced.
Who should use a recruitment agency instead?
Use an agency for temp or contract cover, and for junior, hourly or high-volume roles, where Lem has less career history to match on. An executive search firm may suit a board-level search. An agency also fits if you only want to pay once someone starts, or want help with the offer (ask whether yours gives it). More in When a recruitment agency is the better choice.
Try Lem on your next hire
Lem hunts. You interview. The first search is free: 30 days, any salary, no card needed.
Sources and notes
- Nigel Wright, “Pricing Model FAQs for Employers” (15% to 30% of base salary; contingency and retained models; temp and interim supply): https://www.nigelwright.com/uk/fees-pricing-faqs, checked 21 October 2026
- Seedcamp, “Shifting gears from founder-led hiring” (contingency 15% to 30%; executive search 25% to 35%, upfront fee; executive search firms "are well placed to hire your future leaders"): https://seedcamp.com/views/shifting-gears-from-founder-led-hiring/, checked 21 October 2026
- Agency Central, “How do recruitment agencies get paid (and how much)?” (contingency paid on hire; retained in three parts; how agencies source candidates: contingency favours agencies with "a large database of job seekers"): https://www.agencycentral.co.uk/articles/how-do-recruitment-agencies-get-paid-and-how-much/, checked 21 October 2026
- Gold Group, “Dealing with counter-offers” (client guide; says your recruiter "will be able to help you in the process and provide guidance"): https://www.goldgroup.co.uk/our-clients/talent-attraction/making-hires/dealing-with-counter-offers, checked 21 October 2026
- Reed, “Employment Agency Terms of Business” (effective 1 April 2025; Standard 22%; total first-year remuneration including commission, bonuses and benefits; car at £5,000 minimum; invoices 14 days; 8-week Standard guarantee; clause 13, fee due if the client engages an introduced candidate "in any capacity within one year"): https://resources.reed.com/hubfs/Website/Documents/Terms%20of%20Business/Employment%20Agency%20Terms%20of%20Business%20-%20REED.pdf, checked 21 October 2026
- 808 Group, “Recruitment Terms” (10% of basic, £2,495 minimum; fee on start; 7-day payment; 12-week rebate conditional on payment within 7 days): https://www.808group.co.uk/recruitment-terms/, checked 21 October 2026
- Aaron Wallis, “Employer FAQ” (exclusive period "typically" two to three weeks, during which it will "proactively approach and engage candidates"; 15% of first-year basic remuneration as sole agency, 20% of first-year remuneration on a multiple-agency basis; no charge on non-guaranteed commission; payment 30 days from invoice; 12-month rebate scheme applies if the 30-day payment terms are met): https://www.aaronwallis.co.uk/employers/why-use-aaron-wallis/faq/, checked 21 October 2026
- Ashdown, “Fees and Rebate” ("Head start" 15% for a 10-working-day head start, 20% otherwise; basic salary only; invoice on first day; 13-week free replacement): https://www.ashdowngroup.com/fees-and-rebate, checked 21 October 2026
- GOV.UK, “VAT rates” (standard rate 20%): https://www.gov.uk/vat-rates, checked 21 October 2026
- GOV.UK, “Reclaim VAT on business expenses” ("You can reclaim VAT on items you buy for use in your business if you're VAT registered"; exceptions include VAT-exempt supplies and the Flat Rate Scheme): https://www.gov.uk/charge-reclaim-record-vat/reclaim-vat-business-expenses, checked 21 October 2026
- Lemonade, “Pricing, refund and FAQ”: https://www.makelemonade.io/employers#pricing
- Lemonade, “Employer Terms of Business” (no hire fee, clause 4.4; not exclusive, clause 6.1; refund conditions; VAT, clause 4.7): https://www.makelemonade.io/employer-terms
- Lemonade, “How Lem stays fair”: https://www.makelemonade.io/fairness
Lemonade prices correct as of 21 October 2026.
Agency figures are published terms and commonly quoted ranges, not an average; your agency's terms may differ.
We make Lemonade. We have tried to compare like for like; if anything here is out of date, email contact@makelemonade.io.