Note: This post originally appeared last year. The Job Board Doctor is out, but will be back next week with something new!
Pop quiz: which of the following will increase profitability the most?
- A) Individual job postings and/or resume access
- B) Annual or semi-annual job posting/resume access subscriptions
I’m betting that most of you answered (B).
So why do the vast majority of job sites I visit promote individual job postings and resume access so heavily? When I ask the question, these are the typical responses:
- ‘Employers want to try before they buy’
- ‘Selling a subscription is too hard (via ecommerce)’
- ‘Employer needs are intermittent’
- ‘I don’t know’
This sells your employer short – they’re not getting the best value from your job board with just a single posting; and it sells your site short – you’re cutting profitability and increasing your sales effort. In fact, I’ll go one step further – you owe it to your employers to offer a subscription package first. Here’s why:
- Subscriptions offer a lower overall cost per candidate than individual single purchases – in other words, more ‘bang for the buck’
- Subscriptions increase the likelihood for employer success by allowing postings and access when they are needed – without the delays that come with purchase approval, etc.
- Subscriptions fit better with most employers’ HR budget planning, allowing for annual or semi-annual purchases
- Subscriptions allow employers to annualize intermittent and unpredictable hiring costs over a 6- or 12-month period
- Subscriptions reduce your selling efforts to an annual or semi-annual basis for your employers
- Subscriptions drive up your average revenue per employer
- Per #1 and 2, subscriptions drive up your overall profitability
- Revenue is more predictable