“We don’t want to charge up front because we feel pretty strongly about tying the payment to the outcome,” says [co-founder Kush] Patel. “If they can’t find a job, we’ve screwed up somehow.”
In tech hubs like Silicon Valley, he’s not wrong. Qualified programmers in cities like San Francisco and New York fend off recruiters as multiple companies bid for their services. New recruits signing up for App Academy promise to pay 15 percent of what they earn during their first year on the job, payable over the first six months after they start working. For the school, the math isn’t too shabby if they succeed at placing their students. If 15 students get jobs at $80,000 salaries, that works out to a $180,000 commission.