When Faith and Steven Rothberg, CEO and president of College Recruiter — which caters to recent college grads seeking jobs —  tried to implement a pay-for-performance business model, they ran into trouble.

Most job boards have traditionally sold job listings on a duration basis. But pay-for-performance (or even pay-per-application) is the future, the Rothbergs believe.

The problem: most of the employers College Recruiter works with still want to pay by duration. That created a mismatch when College Recruiter began selling into its publisher network on a pay-for-performance basis.

“If we sell a job for $75 on a duration basis but we’re buying traffic on a pay-for-performance basis and it costs us $125 for those clicks, we have an arbitrage problem,” Steven Rothberg told the AIM Group’s RecPlus conference in Barcelona this morning.

College Recruiter has worked diligently to move its customers incrementally towards a pay-for-performance model to eliminate the discrepancy. So far, it seems to be working: revenue for College Recruiter has doubled in the last year, Faith Rothberg said.

It’s solid advice for other job boards trying to make the transition from duration-based pricing to pay-for-performance.

Related Articles