Conversion Timing / Fee Decay
How does total economic value change across the conversion timeline?
| Week | Conversion fee | GP earned to date | Total economic value |
|---|---|---|---|
| 0 | $10,500.00 | $0.00 | $10,500.00 |
| 3 | $10,500.00 | $1,800.00 | $12,300.00 |
| 6 | $10,500.00 | $3,600.00 | $14,100.00 |
| 9 | $10,500.00 | $5,400.00 | $15,900.00 |
| 12 | $10,500.00 | $7,200.00 | $17,700.00 |
| 15 | $7,000.00 | $9,000.00 | $16,000.00 |
| 18 | $7,000.00 | $10,800.00 | $17,800.00 |
| 21 | $7,000.00 | $12,600.00 | $19,600.00 |
| 24 | $7,000.00 | $14,400.00 | $21,400.00 |
| 27 | $3,500.00 | $16,200.00 | $19,700.00 |
This is a curve, not a single point: total economic value at conversion combines GP already earned with the fee remaining at that week, since both fall as the tiers step down.
Why this comes up
A conversion fee schedule steps down over time, which can look like waiting to convert gets worse for the agency. The full picture is different: GP already earned during the assignment accumulates the whole time, often outpacing the fee's decline. This engine shows the real curve instead of a single point-in-time comparison.
How we calculated this
For each week: Conversion Fee at Week = tier fee applicable at that week GP Earned to Date = Weekly Economic Contribution x week Total Economic Value = GP Earned to Date + Conversion Fee at Week
Worked example: the same schedule (15% at week 0, 10% at week 13, 5% at week 26) on a $70,000 salary, $600/week economic contribution.
Week 0: Fee = 70,000 x 0.15 = $10,500; GP Earned = $0; Total = $10,500 Week 13: Fee = 70,000 x 0.10 = $7,000; GP Earned = 600 x 13 = $7,800; Total = $14,800 Week 26: Fee = 70,000 x 0.05 = $3,500; GP Earned = 600 x 26 = $15,600; Total = $19,100
What this means
- Even though the conversion fee itself falls from $10,500 to $3,500 across this window, total economic value at conversion actually rises, from $10,500 to $19,100, because GP earned to date grows faster than the fee decays.
- This reframes "the fee is getting smaller" from a warning sign into expected, and often acceptable, behavior, as long as accumulated GP is genuinely offsetting it.
- Use this curve to set expectations with a client or hiring manager about when conversion timing actually matters financially to the agency, and when it doesn't much.
Common mistakes
- Reacting to a declining fee schedule as if it means declining total value, without also tracking GP earned to date.
- Using a flat evaluation window regardless of the actual fee schedule's tier breakpoints, missing the exact weeks where the picture changes.
- Assuming the curve always rises; a very low or zero weekly economic contribution means total value can decline alongside the fee, worth checking rather than assuming.
Frequently asked questions
Does total economic value always rise over time?
Not always, it depends on how fast the fee decays relative to weekly economic contribution. A schedule with steep fee drops and low weekly contribution can still show a declining curve; check your own numbers rather than assuming.
How is this different from Temp-to-Hire Conversion Fee?
Temp-to-Hire Conversion Fee checks one point in time. This engine shows the full curve across the evaluation window, useful for understanding the trend, not just a single snapshot.
What evaluation window should I use?
Long enough to cover your fee schedule's full tier structure, so you can see the curve's behavior at and beyond the last tier breakpoint, not just the early weeks.
Limitations
This is a curve built from your own fee schedule and a constant weekly contribution; it doesn't account for a contribution that changes over time or a schedule with fewer than one tier.
Next decision
Learn more
Temp, Temp-to-Hire, and Direct-Hire Economics — three placement models with genuinely different economics.