Consim Info owned jobs classifieds portal ClickJobs.com has adopted a new business model – incentivizing job seekers for uploading their CV, and charging job seekers only for accessing a users contact details. Companies will not be charged for posting jobs, but only for contacting prospective employees – Clickjobs is calling this the “Pay for Contact” model. The existing business model involves primarily offering subscription packages to employers, which allow them to a database of resumes.
Jobseeker Incentive Plan; Verification Is Critical
ClickJobs is incentivising jobseekers to put up their resumes, and also ask their friends to register and upload their resumes. Job Seekers get paid 50% of their resume’s value when their contact details are accessed by the employer, 10% when a referred friends contact details are viewed, and 5% for their friends’ friends resume. As is obvious, such a system may be open to abuse – users may upload fake resumes, just to make money off resume views. ClickJobs is trying to counter this with a verification system.
It is imperative for ClickJobs to build up a large resume database as possible – once they are able to offer the same candidates as a Monster or a Naukri, employers and consultants can opt for the more affordable option. If the resume database remains small – it doesn’t help.
MediaNama spoke to Consim Info CEO Murugavel Janakiraman about the new business model the company has adopted:
How has the change in business model impacted ClickJobs as an organization?
We filed a global patent for this business model last year; we decided that here’s no point in being yet another player in the jobs space. That’s the reason we downsized ClickJobs and cut down on operations – took 6-9 months for working on a new business model, and worked on the product. We believe it will change the way recruitment happens in the country. One of things is that today, the number of people who have put up their resumes – unique, active resumes – is around 50 million 15 million all put together. It’s not that the rest are not looking for a job. If people are incentivised to put up their resumes, we might be able to access the long tail. People who don’t want the money can donate it to a social cause.
Will you reach out to employers a lot less, now that there are free listings? How is this going to impact your sales team – Joe Felix (Head of Sales) has moved on…
With the pay for resume model, the putting up for the job posting is free, and the response free…so we don’t need a large sales force across India. We have three models – the job posting is entirely free, and those who want access to the database, but don’t want to pay for subscription. The third is subscription. We are also paying out from the subscription revenue – 50% of the subscription money from resumes accessed is also paid out.
How have you worked out the pricing for the resumes? Will it be one size fits all, in terms of price?
It’s based on various categories – experience, designation, occupation – many other things. There are various algorithms for this. To avoid duplication of resumes mobile numbers are verified using an IVR system, then only the user gets paid. So the employer pays only a performance based revenue. At the same time, because I am giving the job postings entirely free, I’m going to have more job postings than anyone.
How is this going to work out in terms of revenues for you, if you’re sharing 50%? Aren’t you making lower margins then?
That’s fine – this is meant to be disruptive. The power of the network is really large, because you’re able to reach out to lakhs of people. Less than 25,000 are using a job site at any point in time, actively. There are also lower costs involved as well – a leaner sales force, an online model. There’s a 50% margin. The power of the network will drive. We’ve been investing only on the product side, now we will be scaling up. We’re not competing with anyone in this space now – it’s a new category, and a new business model.
You were also seeking a strategic investor for ClickJobs…
That was based on the old business model, but we are open to partners. The indications of this business model are good, and we’re looking to explore how to grow this faster.
Were you in talks with Reliance Entertainment for a buyout? We’d heard…
I won’t be in a position to comment on it.
(Update: changed value of number of unique active resumes to 15 million from 50 million)
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