Indeed.com is a free job board. It brings together recruiters and job seekers from all over the world. However, how does Indeed earn money? Indeed’s revenue streams are based on a pay-per-performance business model. Let us ascertain this.
What is the Revenue Model of Indeed?
Indeed.com generates revenue from promoted job listings, Indeed resume searches, Indeed targeted ads, and Indeed Hire. Indeed’s financial analysis showed that they earn the most money from paid job postings.
What is Indeed Platform?
Indeed is a jobs listing platform that is part of the Recruit Holdings group. In comparison to many other local job sites, Indeed stood out due to its plain, memorable name, excellent branding and marketing, and global approach.
It is now the world’s most popular job search engine, serving over 200 million job seekers each month.
Indeed was founded by Paul Forster and Rony Kahan in November 2004.
Indeed has an ideal homepage that immediately meets your job search needs. Enter the type of position you’re searching for and the region in which you’re looking. And Indeed’s quest will return a list of all available jobs in the region.
Indeed manages a range of career search engines and associated websites. The following is a list of websites that they own and operate:
- Engineer jobs
How does Indeed generate revenue?
Indeed’s annual sales increased by 67 percent compounded annually between 2011 and 2015.
Indeed, according to its 2018 annual report, the company generates revenue from four major sources:
Targeted Sponsored Jobs – This includes ads served by Doubleclick and other networks, as well as their own featured job post advertisements.
Paid Job Listings: Employers will sponsor job listings to appear at the top of particular search results.
Indeed Resume Search – For a small fee, job seekers can obtain professionally created resumes from the business.
Branded company pages – Businesses can build their own branded feature page on Indeed to showcase all of their work listings in one place.
Indeed Hire – Indeed’s customized recruiting program, with a three-day turnaround period.
Targeted Sponsored Jobs
Among their various revenue streams, their primary source of revenue at the moment is the targeted advertisements that their website provides. This is what Paul Forster had to say about Indeed advertisements:
The advertiser is only charged for clicks on supported ads, while clicks on similar jobs in our natural results remain open.
Jobseeker referrals are highly eligible, as supported jobs are rated according to their importance in addition to their offer.
Conversion rates – from supported clicks to application submissions – are also exceptionally high, as the advertisement landing pages are the advertisers’ own job descriptions.
Employers are permitted to advertise their job openings and company pages. Indeed.com’s business model has proven to be an excellent long-term strategy.
Paid Job Listings
Along with job advertisements, Indeed allows employers to promote job listings. The approximate applicant scope of the organization is displayed in relation to the average amount spent.
This is now one of their primary revenue streams of Indeed. Employers can access inbound applications. However, Indeed provides another extremely useful service.
Indeed Resume Search
Indeed’s resume search subscription service provides employers with critical access to Indeed’s candidate database.
In comparison to inbound applications, it is significantly easier for an employer to sift through the thousands of applicants who meet their criteria.
The resume search subscription fee begins at $100 per month for each recruiter account.
Branded Company Pages
Indeed enables employers to display all of their job postings on a single branded company website. This service is available via Indeed.
Once you have a featured page, you can list all your posts and advertise that page directly, eliminating the need for job seekers to browse through several listings to find yours.
Indeed Hire is an employer-focused recruitment service. This service has a three-day turnaround time and is priced according to the number of candidates needed for any position.
They can gain access to the hundreds of millions of job seekers and filter out the most involved, committed, and important applicant profiles for your position due to their established presence in the job search market.
The best thing for employers is that the fee is charged on a per-hire basis. Indeed is compensated only when a candidate is employed by a company.
Indeed Business Model
Employment search websites, including Gmail, rely on ads as their primary source of revenue and business model. However, in comparison to many other job search platforms, Indeed commands far more exposure and revenue opportunities.
The Indeed business model is robust due to the fact that it is a branded job search platform.
And since customers are visiting their website directly rather than through Google, they will gain a higher profit margin on their product and service business model.
Who are the clients of Indeed?
Employers from all over the world are Indeed’s clients. It is aimed at job seekers.
Employers who post vacancies on their websites attract more job seekers.
What are Indeed’s primary activities?
The primary tasks are to manage their website and databases, as well as to keep track of new clients they acquire.
Additionally, they spend a significant amount of time delivering services under the guaranteed TATs.
Expenses Associated with Indeed
Among the fixed costs are the following:
- Hosting and maintenance of websites and databases
- Salaries of employees
Costs for the fiscal year 2018-2019 totaled 374 million yen. This covers all expenses associated with their sister websites, their staff, and their upkeep.
What is the total revenue of Indeed?
Indeed.com’s cumulative earnings in 2019 were 2,310.7 billion yen, representing a 6.3 percent year-over-year growth rate. Their EBITDA was 293.2 billion yen, up 13.5 percent year on year.
The company’s current assets total 809 billion yen. This is distributed through their existing financial assets, which include cash and equivalents, trade and other receivables, and other current financial assets.
The existing liabilities of Recruit holdings total 497 billion yen.
Frequently Asked Questions of Indeed
Is Indeed really free?
Indeed is a completely free service for both job seekers and employers. Additionally, employers should improve and sponsor their work listings to increase applicant volume.
Is Indeed a source of employment?
Indeed! According to their most recent studies, Indeed accounts for an astounding 65 percent of all hires in the United States. Indeed recruits twice as many candidates as any other career search engine!
I hope you now have a much clearer understanding of the Indeed job search website’s business model and how Indeed makes money. If you are interested, you can checkout Revenue Model of Craiglist.
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