Is Clickjobs’ ‘Pay-Per-Contact’ Model Really Disruptive?

In May this year, WATblog had written about an innovative strategy by jobs portal, Clickjobs to make job posting and resume search free of cost to the recruiters and instead focus on a ‘pay-for-contact’ model whereby the recruiters only pay for candidates they would like to contact. In order to make it attractive for the job seekers, Clickjobs announced a 50% revenue share for every recruiter who pays to contact the job seeker.

As we had opined back then, it would be an incentive for small companies to keep their recruiting costs low and hence make use of Clickjobs. The strategy apparently has worked well. In a recent release, Clickjobs claims that their site traffic has increased by over 200% since the launch of this model and registrations have nearly tripled.

However, what I am not sure is how much of this is because of the ‘disruptive’ strategy and how much is because of the general economic conditions where so many people have either lost their jobs or fear losing theirs. Alexa has not always been a credible measurement tool, but if I were to compare the growth of Clickjobs with the other players in the industry here, I do not see a disruptive trend in the comparison below:

Both Naukri and Timesjobs have seen a 10% growth since June while Clickjobs has seen 39% growth. But Clickjobs is also way smaller than these players and 39% growth is great, but definitely not disruptive, as is claimed.

Another point of discussion is how much will this model work against the recruiters. What will stop me, as a casual job seeker, from filling up all skills and qualifications on my resume. Won’t that help me match up in the resume search of all kinds of recruiters and hence help me get paid more? Definitely the recruiters would face a tough time weeding out such applicants. It would be interesting to study the success ratio of recruiters on Clickjobs against those on Naukri or Timesjobs.

8 Responses to “Is Clickjobs’ ‘Pay-Per-Contact’ Model Really Disruptive?”

  1. August 13, 2009 at 5:52 pm #

    absolutely – this is spammy model – nothing worth considering seriously !

  2. jobseeker
    August 14, 2009 at 10:43 am #

    Looks like Anand is not aware of the business model of CJ.

    Model:
    Employer pays to view the contact details of the resume against the hefty money currently charged by job portals. This is similar to Google’s pay per click model . Every resume is priced differently based on various parameters.

    Job seeker gets paid 50% of the resume value

    Job seeker don’t paid anything for applying job openings. Hence there is no question of spamming.

    ClickJobs growth of 39% without much marketing spending and addition of highest number of job postings compared to any other job portal proves the success of model.

    Looks like the day is not far of for ClickJobs to become a leader.

  3. August 14, 2009 at 11:52 am #

    Hi Jobseeker

    Thanks for your comment. I am indeed aware of the business model and that is precisely the reason I think it will hurt the recruiters.

    If I am here to make money off Clickjobs as a job seeker, I will set off creating a dozen different resumes – one for IT, one for Sales, etc. I may put up everything from Java to Finance accounting under my expertise in my resumes. That would help me be visible to every recruiter who performs a job search based on skill sets. And I get paid for this.

    Since you have likened it to Google Adwords, I would like to point out the existence of ‘Made-for-Adsense’ websites that are present merely to display ads and make money. Google brought in Smartpricing to counter this. Maybe some sort of candidate verification would help the recruiters in saving costs.

  4. jobseeker
    August 14, 2009 at 11:58 am #

    Anand, i guess you missed the point that in ClickJobs, the job seeker can put only one resume and phone number is the unique field.

    While people put multiple resumes in other job sites and it’s not possible in ClickJobs. This way ClickJobs brings the unique and genuine resume.

  5. August 14, 2009 at 1:30 pm #

    regariding 39% traffic growth – what’s use of traffic if its not quality ? it will be a pain in the ass for recruiters – and they dont have time for all this crap !

  6. jobseeker
    August 14, 2009 at 2:20 pm #

    Abhishek, only the existing job portals are becoming crap with tons of duplicate and outdated resumes.

    ClickJobs will outstand as it offers latest and quality resumes and that’s why it’s liked by 1000′s of companies signed in the few months.

    You old guys are getting outdated….

  7. August 14, 2009 at 2:47 pm #

    How does Clickjob ensure that its resumes are more fresh and of higher quality than the bigger players?

    Anyway, the freshness of the resume is not of concern to a majority of the recruiters since portals such as Naukri and Timesjobs come with a freshness parameter to only browse through only those resumes that have been updated in the past so many months.

  8. November 14, 2010 at 7:58 pm #

    A very appreciable model by ClickJobs. The benefit for the Recruiter being Low Cost and the benefit for the Advertiser being Volume Growth.

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