#1 gets a commission for hiring someone for a job as an employee. The employer will pay him a percentage of your yearly salary to the recruiter if you are hired.

#2 is a contract shop recruiter. You are hired by the contract shop and then subcontracted to the employer at an hourly wage which they get an ongoing cut of.

These two types of recruiters are different animals with different skills and motivations.

In my experience, #1 will not do #2 type deals. #2 will sometimes act as #1 doing conversions of temp-to-perm for a lump sum.

There is also a variant of type #1 - a recruiter for a large company that I believe recruits for a salary without commission. This may be to eliminate conflicts of interest in the hiring process (or more properly, favor the employer to be)

all this might have morphed - I haven't interacted with type #2 for many years.