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by MertsA 1830 days ago
>This is a well known behavior in real estate sales, which have a similar commission structure.

Even worse, real estate pays both sides so realtors are heavily incentivized to get their buyers to purchase from their own sellers so they can get both sides of the commission. Instead of paying them 3% to act on your behalf and do a bunch of leg work they get double and now they can do less work and aren't strictly working for your benefit.

Working on commission just leads to wanting to make a deal happen. Even ignoring the time aspect of it, if a recruiter has much better odds of making a placement at 80% max comp compared to 100% max comp, the 80% is still objectively better. Why risk not closing the deal when the expected return is negative?