BERLIN — Speaking at the future trends session of the RecBuzz conference in Berlin today, Dr. Fabian Schulz (LinkedIn profile), partner at Simon-Kucher & Partners, said that a shift to cost-per-application (CPA) performance-based price models could unlock high monetization potential, but would also require significant changes throughout the organization.

Schulz pointed out that recent moves by several large job boards and aggregators to change how they charge for sponsored ads, moving from cost per click to a model of pay for results, highlighted a marked trend in the job board market to focus on real transactions.

However, transforming the revenue model has implications for all parts of the organization, including the product, as the search algorithm needs to be changed from prioritizing paid visibility to prioritizing more relevant job ads, he added.

Furthermore, new products need to be developed to compensate for the cannibalization of high revenue shares that are currently spent on voluntary visibility features, he said. Schulz also emphasized that for job platforms to deserve a 10% cut of the annual salary per hire, they needed to play a greater role in the recruiting process,.

Setting a price per lead is also crucial, Schulz outlined, as it needs to take into account that some clients will need to pay more and some less. Therefore, job boards must let their clients choose whether they want to use a CPL or CPA model, which implies introducing a hybrid model, he said.

According to Schulz, other important aspects include assessing and tracking the ROI of marketing campaigns to link marketing efforts to actual performance, changing the role of sales to focus on customer success, and setting up a customer-centric dashboard to demonstrate value creation and link generated value and customer success.

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