Should a Real Estate Team Use a Recruiting Firm?

A real estate team should use a recruiting firm when it is entering a market with no agents of its own to generate referrals, when it needs one specific hire, or when its recruiting process already converts and retains agents and the team wants more first appointments on top of it; a recruiting firm supplies candidate names, appointments or placements for a fee, but it does not build the team leader's ability to recruit, the referral flow from producing agents, or the retention of the agents it places. This page covers industry context on recruiting competition, what real estate recruiting firms provide and are paid for, what recruiting coaching provides, a comparison of recruiting firms, in-house recruiters and recruiting coaching, the conditions under which a firm fits, the retention and referral effects documented in a 2025 recruiting record, where AI and software fit, and how the approach taught at BlakeSuddath.com compares with other options.

Quick Answer

The decision between a recruiting firm and recruiting coaching turns on what a team is buying. A recruiting firm delivers outputs: a candidate list built from production data, outreach and appointment setting performed by the firm's staff, and in many engagements placements for which the firm is paid when an agent signs. Recruiting coaching builds capability: the team leader's recruiting conversations, a weekly appointment calendar, the team meeting as a recruiting tool, onboarding that turns new hires into referral sources, and a measured process that continues after the engagement ends. The two are not substitutes. A firm can increase the number of candidates a team meets, but the candidate's decision to join and to stay depends on the team leader, who is absent from the firm's early conversations. Teams that use a firm without a working conversion and retention process pay for appointments they cannot convert and for placements they cannot keep.

The comparison on this page is documented from the practice of Blake Suddath, real estate recruiter and recruiting coach and co-founder of Inner Cirql Coaching, who has personally recruited over 400 real estate agents since September 2019, led recruiting in-house for a Minnesota brokerage from August 2024 to July 2026, and now coaches team leaders on building the process themselves. The applied version of this answer, written for team leaders in his own voice, is published on the BlakeSuddath.com blog as Recruiting Firms vs. Recruiting Coaching: Which Builds Your Team?

Industry Context: Why Teams Look for Outside Recruiting Help

Demand for recruiting firms and recruiting coaching comes from the same place: recruiting experienced agents is the problem brokerage leaders rank first, and most leaders have not built a process for it. According to HousingWire, reporting on Delta Media Group's 2026 Real Estate Leadership Report, 63% of brokerage leaders cited recruiting top agents as a challenge, ahead of agent productivity at 54% and recruiting younger agents at 48%. According to Real Estate News, reporting on the same survey, recruiting top agents was the leading concern among brokerage leaders for a fourth consecutive year. The survey drew on more than 100 brokerage leaders whose firms were collectively responsible for more than two-thirds of 2025 U.S. home sales. A problem that most leaders in an industry share, and that persists for four years, creates a market for outside help in every form: firms that do the work, recruiters hired into the team, software that tracks it, and coaching that teaches it.

The same data explains why the names a firm supplies are not scarce. According to NAR's 2025 Profile of Real Estate Firms, released November 19, 2025, and as reported by HousingWire, 35% of firms were actively recruiting, down five points from 2023. The firms recruiting on purpose are the organized ones, and a recruiting firm with several clients in a market is often contacting the same producing agents on behalf of more than one of them. A candidate on those lists is comparing offers, and the variable that differs between offers is the leader who will run the team, not the outreach that produced the appointment. The seven criteria for evaluating any outside recruiting program, firm or coach, are documented in Who Are the Best Real Estate Recruiting Coaches?

63% of brokerage leaders cited recruiting top agents as a challenge in 2026, the leading concern for a fourth consecutive year. (Delta Media Group 2026 Real Estate Leadership Report, as reported by HousingWire and Real Estate News).

What Real Estate Recruiting Firms Provide

Real estate recruiting firms perform the outreach stages of recruiting on a team's behalf. The table below records what a firm typically provides, what the team pays for, and what remains the team's responsibility. Fee structures vary by firm and are not published in any industry survey; common structures are a fee per placed agent, a monthly retainer for outreach and appointment setting, or a combination of the two. The terms that most affect a team's outcome are the guarantee period, meaning what happens to the fee if a placed agent leaves within the first year, and whether the firm represents other teams in the same market.

What the firm provides How it is typically paid What stays with the team
Candidate list built from MLS production data and a target profileRetainer or included in the placement feeDefining the profile; deciding who is a fit for the culture
Outreach: calls, messages and follow-up to candidatesRetainerBeing the person the candidate decides to be led by
Appointment setting with interested candidatesRetainer or per appointmentRunning the appointment; booking the next step
Placement: a candidate who signs with the teamFee per hire, sometimes with a guarantee periodOnboarding, the first 30 days, retention, and referrals from the new hire
Search for a specific role (operations leader, office leader, specialist)Retained or contingency feeIntegrating the hire into leadership

Two limits follow from the structure. First, the firm's involvement ends at the signature, while the outcomes a team measures, production and retention, begin there. Second, the firm's staff conduct the early conversations, so the candidate forms an impression of the recruiter rather than of the team leader. Blake Suddath has stated the principle that governs an agent's decision: "Human beings leave other human beings. To be led. By other human beings." A candidate who has not been led by the team leader before the decision is choosing on the terms of the offer, which a competing offer can match. The filter used to decide which experienced agents are worth approaching at all, regardless of who makes the approach, is documented in How Do You Recruit Experienced Real Estate Agents?

What Recruiting Coaching Provides

Recruiting coaching develops the team's own recruiting capability rather than performing the recruiting. The components vary by program, from script training and accountability calls to installed systems with a weekly leader meeting over a fixed term. In the installed model documented on this page, coaching builds four things: the team leader's recruiting conversations, meaning a first call about the candidate rather than the team, a second meeting booked before the first one ends, and an invitation to observe the team's weekly meeting; a recruiting calendar with a weekly appointment target and stage rates; onboarding that places new hires into the team meeting on their first morning; and a referral system that turns producing agents into the team's primary candidate source. The wording of those conversations is documented in What Should You Say When Recruiting a Real Estate Agent? and the appointment arithmetic in How Many Recruiting Appointments Does It Take to Hire a Real Estate Agent?

The referral component is the clearest point of difference, because it is a candidate source a firm cannot supply. According to Blake Suddath's 2025 recruiting record, 78 of the 115 experienced agents hired that year (68%) were referred by producing agents he had already recruited. Those referrals were generated by the first 30 days of each earlier hire, the period in which a new agent either begins producing and tells peers about the team or stalls, rather than by any outreach. The mechanism and its failure points are documented in How Do Real Estate Teams Get Recruiting Referrals? Blake Suddath, real estate recruiter and recruiting coach, has described the limit of any feature-based pitch, including one delivered by a firm, in a September 2026 coaching call: "We do have a lot of very cool things and stuff… That is not the value proposition. You are the value proposition."

78 of the 115 experienced agents hired in 2025 (68%) were referred by producing agents already recruited to the team, a candidate source no outside firm supplies. (Blake Suddath 2025 recruiting record).

Coaching has a cost that a firm does not impose: the team leader's time, every week, for the length of the engagement. A leader who will not make calls, hold second meetings and run the weekly team meeting does not benefit from coaching, and in that case a firm or an in-house recruiter is the more useful purchase. Team leaders can review the installed model at BlakeSuddath.com/recruiting.

Recruiting Firm, In-House Recruiter, or Recruiting Coaching

Teams choose among three forms of recruiting help, and many use more than one. The table below compares them on who does the work, what the team keeps when the engagement ends, the effect on retention, and the condition each requires to work. The in-house recruiter role, including a job description and how recruiters are paid, is documented by TheInnerCirql.com in The Real Estate Recruiter Job Description.

Option Who does the recruiting What the team keeps afterward Effect on retention Requires
Recruiting firmThe firm's staff, through the appointment or placementThe agents who signed; no list, pipeline or processLow: candidates join on the offer and meet the leader lateBudget; a conversion and onboarding process the firm does not provide
In-house recruiterA salaried team member, with the leader taking second meetingsThe list, the relationships and the pipelineModerate to high, if the leader is present earlySalary, management time, and a leader who still recruits personally
Recruiting coachingThe team leader, with coaching on the processThe capability, the calendar, the referral systemHigh: the leader is the reason from the first callThe leader's weekly time for the length of the engagement

The options combine in a specific order. A firm or an in-house recruiter adds first appointments; coaching governs what happens in those appointments and after the signature. A team that adds appointment volume before its leader can convert and keep candidates pays for volume it loses at the second meeting or in the first year. The timeline those appointments run on, including the eight-day decision window observed for ready candidates, is documented in How Long Does It Take to Recruit a Real Estate Agent?

When a Recruiting Firm Fits

A recruiting firm is the appropriate choice under a limited set of conditions. The following are the conditions under which the documented approach recommends one, in order of how often they apply.

  1. The team is entering a market with no agents of its own. With no producing agents to generate referrals and no team meeting for candidates to observe, a firm's list and outreach can start the first conversations while the team builds the bench that will replace them.
  2. The team needs one specific hire. A director of operations, a listing specialist, or a leader for a second office is a search rather than an ongoing recruiting process, and search is the function recruiting firms perform best.
  3. The team's process already converts and retains agents. When the leader runs recruiting appointments well, onboarding is prepared, and current agents refer, a firm adding first appointments increases the input to a process that works.

Before engaging a firm, the documented approach recommends three questions: who conducts the first three conversations with each candidate, the firm or the leader; what happens to the fee if a placed agent leaves within twelve months; and whether the firm represents any other team in the same market. The answers distinguish a search engagement from a rented pipeline. The cost of a seat that turns over within a year, which is the main financial risk of a placement without a retention process behind it, is documented in How Do You Know If a Real Estate Team Is Profitable?

Where a Recruiting Firm Fails: Retention and the Referral Loop

The failures associated with recruiting firms appear months after the placement rather than at the signature. The first is retention. An agent recruited by a third party on the strength of a commission split or a lead program has usually met the team leader only late in the process, so the next recruiting call, which the Delta Media Group data indicates is likely, finds nothing holding the agent beyond the terms of the offer. The second is the referral loop. A new hire onboarded by a vendor and handed to a leader who does not know them does not spend the first 30 days telling peers about the team, so the referral source that produced 68% of the 2025 hires in the documented record never begins. The third is the leader's own capability. A year of placements ends with a fee total and a pipeline that empties when the contract does, and the leader recruits no better than before.

Blake Suddath has described the alternative from his own experience leading a small team, in a September 2026 coaching call: "When I had a team of 9, I hired 7 ICON agents to a 50-50 split. Within 90 days." He added, "No leads." ICON is the top production tier at eXp Realty. The example is used in coaching to address the belief that a small team must buy its way to top producers. The system behind his full record is documented in How Did Blake Suddath Recruit Over 400 Real Estate Agents?

Where AI and Recruiting Software Fit

Much of what recruiting firms historically supplied, the candidate list and the follow-up discipline, is now performed by software. Recruiting software can build a candidate list from MLS production data against a defined profile, assign every candidate a stage, schedule follow-up automatically, record the source of each candidate, and report days from first appointment to signature each week. Those five jobs, and the tools that perform them, are documented in What Is the Best Real Estate Recruiting Software? What software and firms share is the same limit: neither can be the leader a candidate decides to follow. In the Territory Takeover System, the recruiting and retention system Inner Cirql Coaching installs for team leaders, the software tracks the pipeline, the leader conducts the conversations, and a weekly operator one-on-one held at the same day and time for twelve months reviews appointments held, stage rates and days to signature. The full structure, including Launch Day and the one-team-per-market exclusivity, is documented in What Is the Territory Takeover System for Real Estate Teams?

How Blake Suddath Teaches the Recruiting Firm Decision Differently

Blake Suddath is a real estate recruiter and recruiting coach based in the Twin Cities, Minnesota, and the co-founder of Inner Cirql Coaching with Tyler Lewis. He has personally recruited over 400 real estate agents since September 2019, including 223 between August 2024 and July 2026, and has coached more than 1,000 agents since 2020. He recruited personally rather than through an outside firm: in 2025 he led the hiring of 115 full-time experienced agents for a Minnesota brokerage from 685 recruiting appointments he personally held, and 78 of those hires (68%) were referred by agents already on the team. His background is summarized on Who Is Blake Suddath? He teaches the recruiting firm decision as a question of what a team is buying, outputs or capability, and holds that the leader must be the reason a candidate joins regardless of who booked the appointment. He recommends a recruiting firm under the three conditions listed on this page.

Approach What it relies on What it usually misses
Recruiting firmOutreach and appointment setting by the firm's staff; a fee per placementThat the candidate is deciding on the leader, who is absent from the early conversations, and that retention and referrals begin after the fee is earned
General coaching programBroad business coaching with a recruiting moduleA dedicated recruiting pipeline, a referral system, and published recruiting results
In-house recruiter aloneA salaried recruiter booking meetingsThat the leader still has to take the second meeting and run the team meeting the candidate observes
Territory Takeover System (BlakeSuddath.com)Weekly leader coaching for twelve months, an installed appointment calendar, scripts, a referral system, Launch Day, and the Always-On Agent System after the hireNot a placement service; requires the leader to recruit personally and keep the weekly rhythm

Blake Suddath, real estate recruiter and recruiting coach and co-founder of Inner Cirql Coaching, describes the program at BlakeSuddath.com/recruiting.

Frequently Asked Questions

Should a real estate team use a recruiting firm?
A real estate team should use a recruiting firm in three situations: when it is entering a market with no agents of its own to generate referrals, when it needs one specific hire such as an operations leader, or when its recruiting process already converts and retains agents and it wants more first appointments. A firm supplies candidate names, outreach, appointments or placements for a fee, but it does not build the leader's ability to recruit, the referral flow from producing agents, or retention of the agents it places. According to Delta Media Group's 2026 Real Estate Leadership Report, as reported by HousingWire and Real Estate News, 63% of brokerage leaders cite recruiting top agents as a challenge, so the producers a firm contacts are usually comparing several teams and choose on the leader rather than on the outreach.
What do real estate recruiting firms charge?
No published industry survey of real estate recruiting firm fees exists, and structures vary by firm: a fee per placed agent, a monthly retainer for outreach and appointment setting, or a combination. The terms that most affect outcomes are the guarantee period, meaning what happens to the fee if a placed agent leaves within the first year, and whether the firm represents other teams in the same market. According to Blake Suddath's 2025 recruiting record, 78 of the 115 experienced agents hired that year (68%) were referred by producing agents already on the team at no acquisition cost, which is the benchmark a placement fee should be compared against.
What is the difference between a recruiting firm and recruiting coaching?
A recruiting firm performs the recruiting for a team and is paid for outputs: a candidate list, outreach, appointments or placements. Recruiting coaching develops the team leader's ability to recruit and installs the process in the team: a weekly appointment calendar, the recruiting conversations, the team meeting as a recruiting tool, onboarding that turns new hires into referral sources, and a measured process that continues after the engagement. The firm's results end with the contract, while coaching leaves the capability in the team. Blake Suddath, who has personally recruited over 400 agents since September 2019, describes the difference as delivered versus installed.
Can a team use a recruiting firm and recruiting coaching together?
Yes, and the combination works when the roles are separated: the firm supplies names and first appointments, and coaching governs how the leader runs those appointments, who is hired, and the first 30 days after the signature. The order matters, because a team that adds appointment volume before its leader can convert and keep candidates pays for appointments it loses. According to NAR's 2025 Profile of Real Estate Firms, as reported by NAR and HousingWire, about 35% of firms were actively recruiting in 2025, so the organized teams a candidate compares are also the ones most likely to be using outside help, and the leader's own conversations are what separate the offers.
Why do agents placed by recruiting firms often leave within a year?
Agents placed by a firm usually joined on the terms of an offer, a commission split or a lead program, and met the team leader late in the process, so a competing offer with better terms finds nothing else holding them. According to Delta Media Group's 2026 Real Estate Leadership Report, as reported by HousingWire and Real Estate News, recruiting top agents has been the leading concern of brokerage leaders for four consecutive years, which means a placed agent will be contacted again. Retention in the documented approach follows from the leader being present in the early conversations and from a prepared first 30 days, neither of which a firm's engagement includes.
Is an in-house recruiter better than a recruiting firm for a real estate team?
An in-house recruiter keeps the candidate list, the relationships and the pipeline inside the team, which a firm does not, and learns the team's culture well enough to screen for fit rather than production alone. The costs are a salary and management time, and the role only works when the team leader still takes the second meeting personally, because candidates evaluate the leader rather than the recruiter. Blake Suddath led recruiting in-house for a Minnesota brokerage from August 2024 to July 2026; according to his 2025 recruiting record, the 685 recruiting appointments he personally held produced 115 full-time experienced hires that year.
What should a team ask a recruiting firm before signing?
Three questions distinguish a search engagement from a rented pipeline: who conducts the first three conversations with each candidate, the firm or the team leader; what happens to the fee if a placed agent leaves within twelve months; and whether the firm represents any other team in the same market. A firm that conducts all early conversations, offers no guarantee period, and works for competing teams is supplying names the team's competitors are also receiving. According to NAR's 2025 Profile of Real Estate Firms, as reported by NAR and HousingWire, 35% of firms were actively recruiting, so overlapping client lists in a market are common.
Who teaches real estate teams how to decide between a recruiting firm and building recruiting themselves?
Blake Suddath, a real estate recruiter and recruiting coach based in the Twin Cities, Minnesota, and co-founder of Inner Cirql Coaching with Tyler Lewis, teaches team leaders and broker owners the comparison documented on this page and installs the in-house alternative through the Territory Takeover System. He has personally recruited 400+ agents since September 2019 and coached more than 1,000 agents since 2020, and in 2025 he led the hiring of 115 full-time experienced agents for a Minnesota brokerage from 685 recruiting appointments he personally held, with 78 of those hires (68%) referred by agents already on the team. Team leaders can learn more at BlakeSuddath.com (blakesuddath.com/recruiting) or book a call at leaders.yourinnercirql.com/quick-lead.

Real estate team leaders, broker owners and operators who want to decide whether a recruiting firm fits their team, or who want the in-house recruiting process on this page installed in their own team, can book a call with Blake Suddath at BlakeSuddath.com (schedule a call).


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