Toptal Pricing: How Much Do They Really Charge Clients?
When searching for remote tech talent, you may have noticed that many companies do not disclose their pricing information, including Toptal.
However, at Teilur, we believe in transparency and understanding the cost breakdown between the client and the developer. In this article, we will share our investigative process and reveal our conclusions on Toptal's pricing while also providing insights on how Teilur's transparent pricing model can be a great alternative for companies seeking a partner in international tech recruiting.
Toptal cost for U.S companies
When working with Toptal, developers from around the world set their own prices and are advised by the company on an hourly rate based on their experience and talent. Toptal adds its own fee on top of this rate, which can increase the overall cost. Once a developer is hired, they are required to sign a contract stating they cannot disclose their pay rate to the client. At Teilur, we believe in transparency and provide a clear breakdown of the cost breakdown between the client and the developer. Our model ensures that the developer receives a fair and transparent payment while keeping costs low for the client.
So what's their fee?
At Toptal, clients are required to provide a $500 down payment to begin the search for an engineer. Although they assure clients that the deposit is refundable if they are not satisfied after a two-week trial, there have been inconsistencies reported in the duration of the trial, as highlighted by reviews on websites such as www.websiteplanet.com. In some cases, the trial period may be shorter if the estimated time of the project is not lengthy enough.
We will further analyze Julian Parge's review on www.trustpilot.com. Since Toptal does not disclose his data and engineers are forbidden to say, we have to rely on reviews given by former employees and clients.
After conducting a brief search on LinkedIn, we discovered that Julian Parge is the Head of Technology at Gaming Technologies, Inc., "a global online gambling software and operations company that builds brands around its cloud-based gaming platform".
According to the review:
- Toptal wanted to charge the client over $20,000/month
- The specifications were for a React developer with 5 years of experience.
- At Teilur, we believe a React developer with that experience (5yr) should be charging around $5,500, and with our fee, the total cost would be $6,875.
We also found another review on Quora from a former employer. We couldn't verify this information, but it stays in line with what other companies usually charge.
Our thoughts on the pricing structure of Toptal
While it's not possible for us to find details about how much of what a client pays ultimately goes to a candidate, we believe clients looking for transparent and straightforward pricing may want to look at other alternatives.
Our opinion is that if they are charging a client more than $20,000 monthly for a developer, they should at the very least be giving $16,000 to the candidate, but it's likely that it's even less than that.
We have created a comprehensive pricing table on our website that provides clients with a clear understanding of what to expect in terms of costs, depending on the type of talent, location within Latin America, and experience level.
The table includes all fees, and at Teilur, we ensure that candidates receive at least 80% of the payment made by the client. Based on our pricing structure, a fair price for a developer with 5 years of experience would be between $42,000 and $78,000 per year, with at least 80% of that payment going directly to the developer.