The success of jobboards over the last 10 years has been based on two well-identified business models.
The first is the availability of a database of candidates who are seeking a new job or are following the market. This type of offer is well developed and the service is efficient, thanks mainly to the email alert systems implemented by these platforms: the recruiter is notified in real time if a CV matching its criteria has been added to the base and contact with the candidate can be immediate. This service provides real value to recruiters but comes at a price : around 10 000 euros per year for market leaders like Monster. We can legitimately think that this model will continue for some time, because candidates will always be looking for a place where they can post their CV in order to discreetly inform recruiters that they are either looking or following the market. It is for this reason that professional social networks (LinkedIn, Xing) are struggling to transform their model because it is impossible for a recruiter to know whether profiles are following the market or not, which leads to a significant loss of time spent contacting many profiles before finding available and interested candidates.
The second business model is the publication of job ads. With the rapid development of these super jobboards, newspapers have seen their job ad service disappear in a short time to make way for these new web medias, with Monster showing the way. For 10 years, this model has shown its worth, with jobboards charging a few hundred dollars an ad, with the cost being justified by the site’s audience, that is to say the number of unique visitors to the site.
But we are now at a breaking point with the maturity of ad engines. These search engines operate on a simple principle and index all the listings available on all job sites. The most successful and market leader, Indeed, was bought last weekend by the giant Japanese Recruit Co, Ltd for about $ 1 billion and this year became France’s third most visited jobboard. The service allows the user to access by keyword all job ads on the market, where before he had to go to each site one after another. The jobboards are stuck because they can not strategically refuse to appear on Indeed as it would marginalize them, causing their ads (paid for dearly by their clients) to be at the same level or less well positioned than ads on free sites. For example, the Beetween digital recruitment platform broadcasts job openings to these search engines. The work done with these engines ensures high visibility to the advertiser, and in most cases, better positioning than a paid advertisement.
So why continue to pay a jobboard for an ad?
by Christopher Dacre-Wright, co-founder of Beetween, October 9, 2012