How Does Indeed Make Money?- Know More

Introduction

Unlike every other business, indeed is a leading job-listing and recruitment website founded in America in 2004. Its other annexes and offices are in various parts of the world. Founded by Paul Forster and Rony Kahan, the employment agency presently exists in over 200 countries around the world, and has more monthly traffic than any other job board or job listing website including but not limited to LinkedIn. In this article, we are going to see about How Does Indeed Make Money?

According to Career Cloud, indeed has a distinction of being the largest job board in the world and has attracted the participation of over 50 million listed employers and over 700 million members. Although, it doesn’t appear as professional as LinkedIn, indeed rather helps provide the greatest number of openings and vacancy positions regularly.

The website covers recruitment processes and exercises in various fields and scopes, depending on whether it’s specialized. It also performs a regular function of posting openings or vacancies from existing organizations (small or large scaled companies) registered with a profile account on the website.

In other to make a profit and stay afloat in business, many career websites including indeed make a huge profit through various means, such as selling of customers databases, email newsletters, pay-per-click advertisements, premium content, and other affiliate marketing strategies.

How Does Indeed Make Money?

With millions searching the internet daily for the latest job opening, here are some of the most common ways through which indeed, a job-listing website makes money:

1. Selling of Customer Database
2. Email Newsletters
3. Pay-per-click Advertisements
4. Premium Contents
5. Affiliate Marketing 
6. Subscription fee
7. Banner Ads
8. Hiring events
9. Sponsored posts
10. Resume and Targeted Ads

Selling of Customers Database

The collection of background information or bio-data in the process of profile registration, job search, or posting of job openings by employers includes some means through which indeed gathers precise information about every visitor that logs in and sign-up on its webpage. Information such as a person’s name, address, phone number, email address, and other means of tracking people online (i.e., their online social profile, accepting of cookies.)

Customer data management means keeping a track record of all registered profiles, and accounts of job searchers and posters. It is the way through which indeed keeps track of its customers base in terms of gender, age, location, and other processes of data management and segmentation for detailed profiling.

Email Newsletters

This is a relevant tool used to share real and valuable information with networks of customers, subscribers, and other prospects. The Job portal collates the email address and data of online guests daily. The E-Newsletter usually contains daily, bi-weekly or monthly updates, fresh content, information, offers, and recent developments in various areas, including terms and conditions, depending on which the subscriber agreed/signed up to.

Over time, companies and other types of employers usually contact the agency for profiles of suitable candidates in exchange for money and to avoid the strenuous process of screening numerous applicants.

Pay-per click Advertisements

This is one of the most common online marketing strategies offered by search engines such as Google and other social networks. The advertising model or strategy helps drive traffic to the website as the advertisers pay indeed once the ad is clicked.

According to Statista, the total number of worldwide visits to indeed.com became 641 million unique global visitors from January to June 2021. The company charges employers and job boards on a pay-per-click (PPC) basis to promote their jobs, compiles lists of openings from recruiting agencies, company websites, and newspapers. 

It also generates revenue via AdSense, resume search, sponsored Ads, and strategic relationships

Premium Contents

This is any digital material that comes in various forms and sizes which could be in form of articles, audiobooks, music, TV Shows/Series that usually are subscription-based.

As a leading recruiting agency, indeed proves detailed and in-depth information either about the specific jobs posted daily to ensure the applicants or job prospect existing on the website knows whether they fit in. It might as well contain educative content and information about the latest development for recruitment.

To gain access to such services indeed require most website visitors on the website to complete a web form, stating their name, title, company name, and other relative information.  Asking a typical question such as this has helped the recruitment company to learn a bit more about its prospect needs, expectations, intentions, and whether they can perform at a specific or regular capacity.

Affiliate Marketing

This type of marketing model involves a process where a company pays external bodies or sources to serve as a poster boy, that is… to help it advertise its products or services in other to generate sales. 

Indeed generate funds through its webpage by assisting brands, products, or recruiting websites to place affiliates placed advertisements on its website or blog and get a commission once the leads convert to sales.

Subscription Fee

Similar to LinkedIn, in other to gain more visibility either when sponsoring a job post or in search of a job, a subscription gets you immediate access to quality jobs and projects premium candidates to a headhunting employer or recruiting firm.

Another reason many employers now subscribe to indeed subscription is that it’s easy to use, and serves as a cost-effective way for companies to reach highly qualified applicants in over 60 countries 

The standard subscription fee charged by the website costs about $100 per month, offering 30 new contracts in a month, while a Professional subscription also comes at a minimum of $250 per month, offering 100 new contracts in a month. 

Banner Ads

It’s also known as a Display Ad, similar to a digital billboard which involves using imagery to attract attention as a primary goal of driving traffic to the advertiser’s website.

it refers to the use of a rectangular graphic display that stretches across the top, bottom, or by the sides of a website or online medium.

A web Banner Ad is one medium through which indeed generates revenue from its website by offering B2B, companies, and other types of business space to embed an advertisement on its website. This is usually possible because of the number of daily visitors and registered database on the website.

Hiring Events

The online recruiting company also permits employers to post, upload or share positions, conduct an initial screening process or virtual interviews for multiple candidates that meet the employer’s benchmark or criteria for interview selection.

It also at intervals or on a timely basis monitors the interview process, usually requesting feedback from a candidate about the employer vis-à-vis.

Sponsored Job Posts

Also known as promoted posts. Here employers or companies searching for the most suitable candidate by offering payment to indeed to help promote the post, ensure broad visibility to the public and to the specific targets.

How does sponsored posts work? When sponsoring a post, an employer can promote what they have previously uploaded in order to increase awareness towards the post and in the end to attract the most active users in order to increase the company or employers page review and the total number of applicants turnout.

In order to remain relevant and ahead of other competitors or recruiters, employers surely pay to get their job post sponsored and appear at the top of the job listing search. This is because, for any search inquiry, there might be a thousand and one other jobs that match the same search intent.

The price for a bid depends on the popularity of the search term. As an example, someone bidding for a keyword from a closer location, such as within a country, is more likely to pay less than someone bidding for the same keyword in that location but from a distant state or location.

(e.g., bidding for a keyword in New Jersey within New Jersey, and comparing it with someone bidding from Connecticut for the same keyword in New jersey).

According to Indeed, sponsored posts are 3.5 times more likely to result in a hire, and sponsored posts start with as little as $5 a day, but indeed might decide to increase the price or fee without limits.

Once a sponsored Ad or post gets clicked, part of that budget is being used (depending on the price for that click).

Indeed Resume

While users on Indeed can increase their visibility towards potential employers by uploading their resume or data profile on the platform, employers and recruit executives or personnel also search the database of all potential applicants and find the most suitable candidate for the position.

To access this information, a monthly subscription is required and the type of plan being subscribed to determines how often one can gain access to potential hires.

The premium plan, which is called professional subscription costs about $250 and helps unlock access to new features and insights on indeed whose platform has over a hundred and fifty million resumes uploaded with six million adding every month.

Targeted Ads

This type of online advertising is carefully developed, and specifically targeted at certain individuals or prospects whose profile matches the traits, interests, and other human features/characteristics a campaign is tailored towards in order to get in the face of its real audience.

Targeted ads are advertising snippets that appear on various spots, pages, or segments on Indeed website. Most especially, these ads are found on the homepage, recommended jobs page, view jobs page, and others.

Although indeed avoids public disclosure of price on Ad placement and as price are determined by the position or placement of the Ad, targeted location, and duration of the campaign. The advertiser makes the decision on the position of the ad placement and on other specific parameters that affect how, when, and where such ads show up.

How Much Money Does Indeed Make?

According to Business Intelligence for Marketplaces and Classifieds, it estimated that in 2017 indeed revenue for the year was $750 million, which was a 14.2% increase from the previous year.

According to the latest from the Annual report published by Recruit Holdings, Indeed Incorporations have been growing at a rapid pace in the last three years and have recorded a revenue of approximately $2.5 billion USD in year 2019.

Conclusion

As an American worldwide employment website, indeed incorporation is growing at a rapid pace above 50% and expanding its workforce and offices across globally.  

It keeps still the position of the No.1 job website in the world with over 250 million unique visitors daily.

Although, there are various job portals which are available online, such as Monster.com, Naukri.com, CareerBuilder. however, Indeed appears still as the foremost and most preferred go-to portal for job listing and employment.

It attracts two main types of customers; recruiter and job seeker through huge advertisements and publicity, from which it also generates yearly profit from.

The indeed portal makes money mostly from the employers through customers database about the applicants, adverts placements, post sponsorship, banner ads, recruitments process, affiliate marketing, premium contents, pay-per-click, subscription fee and email newsletter.

As a public Limited Incorporation indeed makes huge money, financial success and invests back into many new projects such as expansion of its workforce and office space across the globe.

Reference

1. Viktor, (2021, July 5). The Indeed Business Model – How Does Indeed Work & Make Money. https://productmint.com/the-indeed-business-model-how-does-indeed-work-make-money/
2. J. Clements, (2021, Dec. 9). Worldwide visits to indeed.com from jnuary to June 2021. https://www.statista.com/statistics/1259806/number-of-unique-visitors-to-indeed/
3. Surabhi Kedia, (2019, Dec. 10). Here’s How Job Portal Like Naukri, Indeed, Monster Earn Money https://www.marketingmind.in/heres-how-job-portals-like-naukri-indeed-monster-earn-money/
4. Indeed (2019). About Indeed https://www.marketingmind.in/heres-how-job-portals-like-naukri-indeed-monster-earn-money/
5. Wikipedia (2021, Nov. 22). About Indeed https://en.wikipedia.org/wiki/Indeed
6. Kevin Mercadante, Indeed Vs Linkedin https://www.careercloud.com/news/indeed-vs-linkedin