Try vetted U.S. talent on contract. Convert on transparent, tapering terms.
Every Equilibrium engagement can become a permanent hire. Freelancers and fractional consultants run on separate terms and separate conversion rates, because the trial periods, comp structures, and risk profiles are not the same. The longer someone works through Equilibrium, the lower your conversion fee — down to zero.
Freelancer / Contractor conversion rates
Billable hours completed through Equilibrium
Fees are a one-time percentage of first-year compensation and replace any recruiting retainer. Equilibrium never takes a cut of the talent's pay.
Conversion fee estimator
Base salary only — exclude bonus, equity, and sign-on.
0 – 500 hrs · 20% of first-year comp
$29,000
Most clients still save money during the first year: the fully-loaded cost of a typical W-2 hire (payroll taxes, benefits, unemployment insurance, overhead) usually exceeds Equilibrium's 20% contract markup, even before the conversion fee tapers down.
- One-time fee — no ongoing platform cut after conversion
- Invoiced only after the hire's confirmed start date
- Prorated credit if the hire departs inside the guarantee window
Freelancer / Contractor program terms
- Minimum trial before conversion
- 160 billable hours (about 4 weeks full-time)
- Conversion notice
- 10 business days written notice to Equilibrium
- Replacement guarantee
- 90 days — free replacement sourcing if the hire departs
- Rate protection
- Contract bill rate is locked for the trial period
- Off-platform hire
- Direct hire within 12 months of last ping = full 20% fee
- Payment terms
- Net 30 from the hire's start date
Freelancer vs fractional consultant, side by side
| Term | Freelancer / Contractor | Fractional Consultant |
|---|---|---|
| Starting conversion fee | 20% of first-year base salary | 25% of annualized first-year comp |
| Fee taper measured in | Billable hours | Retainer months |
| Fee reaches zero at | 2,000 billable hours | 12 retainer months |
| Minimum trial | 160 billable hours | 2 retainer months |
| Conversion notice | 10 business days | 20 business days |
| Replacement guarantee | 90 days | 60 days |
| Typical converted role | Full-time W-2 individual contributor | Part-time or full-time leadership seat |
W-2 overhead vs. contract-to-hire cost scenario
Below are illustrative first-year costs for common U.S. freelancer engagements. The W-2 column includes a 30% fully-loaded overhead estimate (payroll taxes, benefits, unemployment, and overhead). The contract-to-hire column uses Equilibrium's bill rate (contractor rate + 20% platform markup) plus the conversion fee earned at that tier.
| Scenario | W-2 fully-loaded cost | Contract-to-hire cost | First-year savings |
|---|---|---|---|
| $75/hr market rate1,000 billable hours · $90/hr Equilibrium bill rate | $202,800 | $113,400includes 15% conversion fee | $89,400 |
| $100/hr market rate1,000 billable hours · $120/hr Equilibrium bill rate | $270,400 | $151,200includes 15% conversion fee | $119,200 |
| $125/hr market rate2,080 billable hours · $150/hr Equilibrium bill rate | $338,000 | $312,000conversion fee reduced to 0% | $26,000 |
| $150/hr market rate2,080 billable hours · $180/hr Equilibrium bill rate | $405,600 | $374,400conversion fee reduced to 0% | $31,200 |
Assumptions behind the numbers
W-2 fully-loaded overhead (30%)
- • Employer payroll taxes (FICA, FUTA, SUI)
- • Health, dental, and vision benefits
- • 401(k) match and other fringe benefits
- • Unemployment and workers' compensation insurance
- • Office, equipment, IT, and administrative overhead
- • PTO, sick leave, and paid holidays
Contract-to-hire cost (20% markup)
- • Contractor market rate = what the talent earns
- • Equilibrium bill rate = contractor rate + 20% platform markup
- • Markup covers sourcing, vetting, insurance, invoicing, and compliance
- • Conversion fee is added only at the earned tier
- • No ongoing platform cut after the hire converts
Contractor market rate × 2,080 hrs = equivalent full-time salary. Actual savings vary by benefits package, state, and agreement. The 30% overhead figure is an illustrative blended estimate for mid-market U.S. employers.
How conversion works
Step 1
Flag the role as contract-to-hire
Toggle contract-to-hire when posting. Matched talent sees the intent up front, so nobody is surprised at conversion time.
Step 2
Run the paid trial
Work together on a normal Equilibrium contract — 1099 invoicing, NDAs, and insurance stay in place through the trial.
Step 3
Convert at the tapered rate
Give notice, we generate the conversion invoice at the tier you've earned, and the contract closes cleanly.
Step 4
Keep the guarantee
If the hire doesn't stick, we re-source the role at no additional placement cost inside the guarantee window.
For freelancers & consultants
Conversion fees are paid by the client — never deducted from your rate or your final invoice. You always choose whether to accept a conversion offer, and declining one never affects your match score or ping eligibility. Contract-to-hire roles are labeled as such in your pings so you know the client's intent before the first call.
Rates and terms shown are the Equilibrium standard program. Enterprise agreements and volume schedules may differ — your executed client agreement governs.