One of the first questions anyone asks before joining a profit-sharing model is the most practical one: how does the money actually work? Here's a clear breakdown.

The Basic Formula

Profit sharing starts with a simple idea: the difference between what a client pays for a consultant and what that consultant is paid is the profit on that placement. You and HR2HR split that profit.

Client Bill Rate − Consultant Pay Rate = Gross Profit
Gross Profit × Your Share % = Your Earnings

So if you bill a client $85/hour for a consultant, and that consultant is paid $55/hour, the gross profit is $30/hour. If your share is 60%, you earn $18 of every billable hour that consultant works.

The Variables That Move the Number

  • The spread between bill rate and pay rate — the single biggest driver of profit
  • Billable hours — a full-time placement (160 hrs/month) generates significantly more than part-time
  • Number of active consultants — profit share compounds as you scale
  • Your share percentage — agreed with HR2HR upfront

Estimate Your Own Numbers

The fastest way to see what this could look like for you is to use our interactive calculator and plug in your own bill rates, pay rates, and headcount.

Open the Earnings Calculator →