Cloud Employee pricing checklist: questions to ask before committing to a developer

At $3K-$5K/month for Philippines-based developers and $4K-$7K/month for LATAM-based developers, your first Cloud Employee hire represents a meaningful monthly commitment. The contract terms, guarantees, and inclusions determine whether this scales cleanly or creates headaches later. Our pricing model is genuinely straightforward, but founders who skip the right questions before signing sometimes miss details that matter at renewal or replacement time.

This checklist covers every pricing-related question worth asking before your first hire, with the answers you should expect and the follow-up questions to raise if anything's unclear.

1. Confirm what you'll pay and what drives the rate

At $3K-$5K/month for Philippines-based developers and $4K-$7K/month for LATAM-based developers, nail down the exact number for your specific hire before agreeing to anything, and understand what variables move it.

What's the monthly rate for your developer?

Our pricing page shows one fixed monthly fee model. In public ranges, Philippines-based developers run $3K-$5K/month and LATAM-based developers run $4K-$7K/month, with variation by tech stack and seniority level.

Use the price comparison calculator to model your specific scenario before getting on a call. Running the numbers for a mid-level developer versus a senior one shows a meaningful monthly difference, and knowing your ceiling before negotiating sharpens your position.

Several factors determine where you land in those ranges:

• Seniority level: Junior, mid-level, and senior engineers carry different rates. Rates increase with seniority, so senior placements fall in the upper range within each region.
• Region: Philippines developers cost less than LATAM developers. Both save 50-75% versus a comparable fully-loaded local hire, according to our staff augmentation cost breakdown.
• Tech stack: Rates vary by skillset within the stated range. Ask your account manager whether your specific requirements fall at the low or high end.

Questions to ask:

1. What's the exact monthly rate for the seniority level and region I'm hiring from?
2. Does my specific tech stack (React, Node, AWS, etc.) affect the rate?
3. Is that rate fixed for the duration of the engagement, or can it adjust at renewal?

What seniority level are you actually getting?

Our CTO-led vetting process filters for senior developers specifically, using live pair programming as a core assessment stage. Each candidate goes through technical assessments and problem-solving evaluation, with live pair programming used to assess real-world coding ability and architectural thinking. We assess architecture judgment, independent debugging, and code review experience. You shouldn't pay a senior rate for a mid-level developer, and the vetting process is designed to prevent that. You still conduct final interviews and approve each placement, so you control the quality bar. Ask for a clear explanation of how the candidate's seniority was assessed before you approve the placement.

Questions to ask:

1. How did you assess this developer's seniority level in the vetting process?
2. What was their technical assessment result relative to other candidates?
3. Have they worked on production systems at the scale my product operates at?

2. Verify everything that's included in the monthly fee

We include everything in the monthly rate, but you should know exactly what "all-inclusive" covers before you assume.

What does the monthly fee actually cover?

One monthly fee covers:

• Developer salary and compensation
• Payroll processing
• HR administration
• Benefits
• Dedicated Client Success Manager for delivery and escalation
• Annual L&D support and personalized development roadmaps
• Structured 90-day onboarding, with Talent Success support so your internal team doesn't carry that burden alone
• Regular performance and engagement support
• Replacement support if a developer doesn't work out

We don't charge placement fees on top of this monthly rate, and no recruiter markups.

Questions to ask:

1. Is equipment provided, or do I need to supply hardware?
2. Does the monthly fee cover the L&D budget, or is that billed separately?
3. Who pays for software licenses the developer needs for their work?
4. Is the Client Success Manager included at every team size, or only above a certain headcount?

What does the developer experience look like?

We invest in developer experience because valued developers stay longer, and our retention infrastructure directly affects your team stability. Our developer experience model is built around structured onboarding, ongoing support, and continuous learning infrastructure. Cloud Employee's live embed and onboarding pages show UK/US governance for the client, local Talent Success and L&D support for the developer, and week-by-week onboarding with regular check-ins.

This matters to you as a client because engaged developers ship better code and stay longer. Cloud Employee's public Glassdoor profile currently shows a 4.8 out of 5 rating, with 99% of employees saying they would recommend the company to a friend. You still need to provide clear project direction, code review standards, and team integration effort. We handle the operational support and professional development infrastructure.

Questions to ask:

1. What does the 90-day structured onboarding look like for my developer?
2. Who are the Talent Success Managers and how often do they check in?
3. What happens when a developer flags a performance or wellbeing concern?

3. Understand the contract terms before you sign

The contract structure is more founder-friendly than most staff augmentation models, but you still need to know exactly what you're agreeing to.

What's the initial commitment period?

The initial commitment is three months. If the first developer isn't the right fit, we work to find a replacement. You're not locked into a developer who isn't working, but you are committed to working with us for three months while we find the right fit.

After those three months, contracts typically operate on more flexible terms. The staff augmentation contract terms guide explains what to look for and negotiate in these agreements in detail.

A note on realistic expectations: "start in 7 days" means we present candidates to you within 7 working days of your requirements call. The developer's first code commit and reaching full productivity takes additional time depending on your codebase complexity. Budget time for codebase familiarization and context building. Our 90-day onboarding playbook covers how to structure this well.

Questions to ask:

1. Is the 3-month commitment tied to me specifically, or to a specific developer?
2. What happens if I want to pause (not cancel) an engagement mid-term?
3. After the initial term, is the one-month notice from either side, or only mine?
4. Do I need to give notice in writing, and what's the cutoff in the billing cycle?

What are the exit conditions?

The one-month notice period post-initial term is the main exit clause. We don't charge conversion fees if you later decide to hire a developer directly onto your own payroll, and that's worth confirming in writing, especially if you're open to eventually bringing a developer in-house after testing the model.

Questions to ask:

1. Is there a conversion fee if I want to hire this developer directly after 12+ months?
2. Does the one-month notice apply if I'm scaling down from three developers to two?
3. What happens to billing during the notice period?

4. Understand the replacement guarantee scope

The guarantee exists, but know its exact boundaries before you rely on it in your planning.

How does the replacement guarantee work?

We provide a two-week money-back guarantee if the developer isn't the right fit. If a developer doesn't work out beyond that window, they offer replacement support. Specific timelines and terms should be confirmed during your initial discussions. Factor in time for interviewing and approving any replacement candidate, plus the new developer's codebase ramp-up time.

For companies concerned about common staff augmentation mistakes during scaling, the replacement guarantee is one of the key structural protections that separates staff augmentation from traditional hiring, where a developer departure means starting a 41-day hiring cycle from scratch.

Questions to ask:

1. Does billing pause during the replacement window, or does the monthly fee continue?
2. Is there a limit on how many replacements I can request?
3. What constitutes "not the right fit" in your definition vs. performance failure?
4. Who initiates the replacement process and what's the formal request mechanism?

What triggers the money-back guarantee?

The two-week money-back guarantee applies when the developer doesn't meet your expectations. Get the specific trigger conditions in writing: what evidence of poor fit you need to document, how you submit the refund request, and how long the refund takes to process.

Questions to ask:

1. What's the process for invoking the money-back guarantee?
2. Does the 2-week clock start from the contract date or the developer's first day?
3. Is the refund the full month's fee, or prorated to the 2-week period?

5. Clarify payment terms and billing cycle

Our monthly fee structure carries no upfront costs, but specific billing logistics aren't publicly published. These are the questions to get answered before the contract is executed.

When does billing start and how are invoices structured?

We don't charge upfront fees, deposits, or placement costs. You only start paying once we successfully place a developer with you. We charge a simple monthly fee per person placed. That fee covers everything with no hidden extras and no long-term lock-in contracts.

The staff augmentation ROI calculator is useful here for modeling your exact monthly commitment before you get into billing discussions.

Questions to ask:

1. What are the payment terms? Net 15, Net 30, or payment in advance?
2. What payment methods do you accept? Wire transfer, ACH, credit card?
3. Does billing start on the developer's first day or on the contract execution date?
4. If I hire multiple developers in the same month, are they invoiced together or separately?
5. Do you support multi-currency billing for UK or Australian clients?

What happens to billing during a replacement?

We provide replacement at no additional cost, but whether billing pauses during the replacement window isn't publicly stated. For founders modeling cash flow, this distinction matters: if you're paying the monthly fee for a period with no active developer while a replacement is being sourced, that affects your effective cost-per-productive-day calculation.

Questions to ask:

1. Does billing continue during the replacement window between developers?
2. Is the monthly fee prorated if a replacement takes more than a few days?
3. Do you offer a billing credit for extended replacement gaps beyond 7 working days?

6. Confirm there are no hidden fees

Our model is built around a single monthly fee with no hidden extras, but verify the specific scenarios where additional costs could theoretically arise.

What's the complete list of fees?

The monthly fee structure explicitly excludes:

• Placement fees
• Recruiter fees
• Conversion fees (if you later hire directly)
• Hidden extras or markups

The monthly fee covers everything listed in section 2 of this checklist, and rolling monthly contracts carry no hidden fees. That said, there are scenarios worth confirming directly with your account manager before signing:

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Questions to ask:

1. Are there setup or onboarding fees for new clients?
2. Are there volume discounts for teams of 4 or more developers?
3. What's the policy if developer hardware needs replacing mid-engagement?
4. Is there any cost difference between a Philippines-based and a LATAM-based developer at the same seniority level?

What does conversion actually cost?

We don't charge conversion penalties if you want to hire a developer directly after working together. This is a genuine differentiator compared to some competitors. Get this confirmed in your contract, specifically what "conversion" means in our terms and whether any notice period still applies.

Developers who feel genuinely supported are more likely to stay. We tie retention to structured onboarding, dedicated support, and broader learning, wellbeing, and growth infrastructure. For many clients, the conversion question matters less when retention is strong, but it is still worth confirming the terms in writing before signing.

How the savings stack up

Running the math before you commit gives you a sharper negotiating position and a cleaner story for your co-founder or board.

A US senior software engineer costs $212,000-$230,000 in year one when you factor in salary, benefits, overhead, and recruiting fees (typically 15-25% of annual salary). Here's how that compares to Cloud Employee's verified monthly rates, calculated to annual figures:

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Scaling that to a team of five, the gap becomes substantial:

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Use the price comparison calculator to model your specific team size, region, and seniority mix.

What to ask on your first call

Consolidating everything above into a single checklist for your discovery call:

Rates and inclusions:

1. What's the exact monthly rate for my seniority level and region?
2. Does my tech stack affect the rate?
3. Is the rate fixed for the duration of the engagement?
4. What's included in the monthly fee, and what isn't?
5. Who covers equipment and software licenses?

Contract and exit:

1. Is the 3-month commitment to you or to a specific developer?
2. What's the one-month notice process after the initial term?
3. Is there a conversion fee if I hire a developer directly later?

Replacement guarantee:

1. What are the exact conditions for invoking the money-back guarantee?
2. Does the 2-week clock start on contract date or developer's first day?
3. Does billing continue during the replacement window?
4. Is there a limit on replacement requests?

Payment logistics:

1. What are the payment terms and accepted methods?
2. Does billing start on the developer's first day or contract execution date?
3. Do you support multi-currency billing?
4. Are multiple developers invoiced together or separately?

Hidden fees:

1. Are there volume discounts at 4 or more developers?
2. Are there setup, onboarding, or conversion fees?
3. What's the policy if developer hardware needs replacing mid-engagement?

Start your pricing conversation

Run your specific scenario through our price comparison calculator to model your team size, region, and seniority mix before your first call. When you're ready to verify these details with our team, contact us and bring this checklist with you.

Key terms glossary

Fully-loaded cost: The total annual cost of employing a developer, including base salary, payroll taxes, benefits, equipment, overhead, and recruiting fees. For a US senior engineer, this runs $212,000-$230,000 in year one.

Staff augmentation: A hiring model where a vendor provides full-time developers who integrate into your team and work exclusively for you, while the vendor handles payroll, HR, and compliance as the employer of record.

Employer of record: The legal entity that employs a worker, handling payroll, benefits, taxes, and compliance. In our model, Cloud Employee is the employer of record, not the client company.

Time-to-hire: The number of days from opening a role to an accepted offer. Engineering roles average 41 days locally, versus 7 working days to candidate presentation under our model.

Talent Success Manager: The Cloud Employee team member responsible for supporting a developer's structured onboarding, ongoing engagement, and performance support throughout the engagement.

Replacement guarantee: Our commitment to replace a developer at no additional cost if they exit or don't meet performance expectations, with new candidates presented within 7 working days of the request.

Rolling contract: A month-to-month arrangement that continues until either party gives notice. Cloud Employee engagements move to monthly rolling terms after the initial 3-month period, with one-month notice required to exit.