Innovative pricing on job boards
Since their very beginnings job boards have been largely straightforward in their revenue model and pricing. In general, job boards operate on a classified ad model. That is, advertisers pay to put their job vacancies on the job board.
There are a variety of ways this works. Most job boards ask a client to pay for each single job they post on the website. So if you have a vacancy, you upload your job ad and pay for it by credit card or something like that. Of course, the more job ads you post the better deals you’ll get on the price.
Some sites, however, operate a slot model, where the client pays for an advertising slot and can run different ads in the slot for the duration of the contract. For example, a client might buy one slot for 4 weeks. In the first week the client posts a first job. In the second week it replaces this job with another. In the third week it does the same. So, there are three jobs advertised in the one slot. While this differs from pay per post it is still, effectively, a classified model.
The truth is that it is rare that job boards move beyond these kinds of pricing approaches. In recent years there have been a number of new and interesting pricing models proffered — though it must be said that none have truly “caught on”
Pay pay click
In this approach, the client pays not for the job ad but rather for each click that the advertising site delivers. This tends to be a very popular advertising model for job search engines (aggregator job boards) and is generally aimed at volume recruiters like recruitment agencies and job boards. While there have been a few job boards that have tried this model for small volume recruiters like direct employers, few have kept it as an ongoing pricing approach. Indeed, from what we can see, most have reverted to the classified model.
Pay per engagement/contact
With this method, clients generally advertise their jobs for free but then have to pay to engage or contact the job applicants. That is, whether the candidate applies for the job ad or the client downloads a CV, the client can’t “engage” with the client unless they pay a fee. Typically, contact information is blacked out and paying releases this information.
Over the last number of years we have seen quite a few companies try this approach but again, this hasn’t really caught on as a standard pricing approach.
Pay per placement
In this case advertising is free but the client pays when the placement is made and accepted by the applicant. Again, a number of sites over the last number of years have launched this approach but none have been able to maintain it as a viable business model.
There are no doubt other job boards out there doing different things but none have really changed the market. In many ways, the challenge facing new job boards with new engagement and pricing models is inertia. The job board industry is long established. People know what they are getting and it bumbles along nicely, thank you very much.
What’s more, most of the quirks and annoyances of online recruitment and job board advertising have been addressed by the online recruitment eco-system. Too many sites? Get a job posting service! Too many applicants? Get a filtering service! Too many emails? Get an ATS.
It is for this reason, inertia, that there have been so few truly exciting developments in the online recruitment and job board sectors over the last number of year. Job board kind of work. And people kine of like what they do and don’t want to change it. The old saw may apply: if it ain’t broke don’t fix it.
Posted: August 30th, 2010 under help and advice, job boards, online recruitment.
Tags: ATS, pricing
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