- What is Indeed, and how does Indeed work?
- How does Indeed make money?
- Sponsored Job Posts
- Subscription Revenue (Indeed Resume)
- Indeed Hiring Platform
- Purchasing Indeed Resume Contact Credits
- Advertising Revenue (Indeed Targeted Ads)
- Indeed subsidiaries, acquisitions, and exits
- Indeed profit and revenue
- What is the Indeed business and revenue model?
- Indeed funding, net worth, and valuation
How does Indeed make money and how is it free to use? Here is a full, in depth, breakdown of their five (5) revenue streams and the different products and services they offer, as well as the Indeed business and revenue model, how much Indeed makes per year, and how Indeed works.
What is Indeed, and how does Indeed work?
Indeed is a jobs metasearch engine platform for both employees and employers to find each other through job listings.
Founded in 2004 by Paul Forster and Rony Kahan, Indeed went on to later get acquired by Recruit Holdings on October 1, 2012, for an undisclosed amount.
Since that time, Indeed now has more than 250 million monthly unique visitors as well as 3+ million companies using Indeed to find and hire new employees.
So, how does Indeed work? To use Indeed to find employees or employers, you can either download their mobile app in the Apple App Store or Google Play store, or visit their website.
Once on their platform, you can simply enter in the type of job you’re looking for and the location. As well as additional filters like the salary range you’re looking for, remote only, how many hours, etc then tap “Find jobs.” From the search results, you can then apply to open positions you’re interested in and go from there.
Some of Indeed’s competitors include LinkedIn, ZipRecruiter, Glassdoor, Monster.com, and other job listings websites.
How does Indeed make money?
According to Indeed’s about page, Indeed has more than 250 million monthly unique visitors as well as 3+ million companies using Indeed to find and hire new employees.
So how does Indeed make money off of all that traffic, job postings, and companies?
Below is a breakdown of how much money Indeed makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 5 ways of how Indeed makes money in 2022
Indeed has a revenue model that makes money in five (5) ways; sponsored job posts, subscriptions revenue from Indeed Resume, selling Indeed Resume contact credits, Indeed’s Hiring Platform for employers, and ad revenue from Indeed targeted ads.
#1. Sponsored Job Posts
Although posting jobs on Indeed is free, one of the ways Indeed makes money is through the sponsored job postings they offer to employers on the platform.
So if posting jobs on Indeed is free, what’s the difference between free job postings and sponsored job postings? Well, free listings get pushed down in search results as new jobs are added. While sponsored jobs remain a top, displayed in all the relevant search results for as long as they are sponsored.
The way Indeed sponsored job pricing works is, employers pay per application submitted, not per click. This is known as a Cost Per Application (CPA) model. And, according to Indeed, application prices can range from $15 to $150 per application. As you can see below.
How much do Indeed sponsored jobs cost?
- $15 to $150 per application with a daily budget between $5 to $499 per day
Note: There are more than 10 jobs per second posted on the Indeed platform globally.
#2. Subscription Revenue (Indeed Resume)
Indeed also makes money through its subscription service, Indeed Resume.
What is Indeed Resume? Well, while employers can search the Indeed talent database and see candidates’ resumes for free, they can only see a preview.
To see the full resumes and to also have the ability to contact potential prospects, employers will need an active Indeed Resume subscription.
Indeed offers two (2) paid subscription tiers for Indeed Resume; Standard and Professional. Which will both give access to contacting potential prospects from Indeed’s talent database, tools to communicate with prospects that are interested in open positions, and more.
How much does Indeed Resume cost? (pricing)
- Standard: $120 USD per month or $1,150 USD per year
- Professional: $300 USD per month or $2,880 USD per year
#3. Purchasing Indeed Resume Contact Credits
From Indeed Resume, Indeed also makes money by upselling those customers to purchase contact credits.
Contact credits are what allow employers to reach out to potential job candidates, which cost $3 per credit. Pricing may vary by market.
#4. Indeed Hiring Platform
Another service Indeed offers to employers on the platform is their Indeed Hiring Platform.
This service is an all in one, A to Z, solution that aims to help employers hire quickly at scale by having the ability to do things like conducting unlimited candidate screenings, schedulings, interviews, and more – all on Indeed.
As noted above, Indeed has more than 3+ million companies using Indeed to find and hire new employees. Although it is unclear how many are using Indeed’s Hiring Platform.
Note: 96% of Fortune 500 companies use Indeed, according to Indeed.
#5. Advertising Revenue (Indeed Targeted Ads)
In addition to sponsored job posts, Indeed also makes money from offering targeted ads for employers.
Indeed Targeted ads display both on and off Indeed’s website and need to be approved by Indeed to run them.
Indeed subsidiaries, acquisitions, and exits
Aside from Indeed being acquired by Recruit Holdings, Indeed has had its own fair share of acquisitions as well.
Indeed profit and revenue
Indeed’s last reported earnings came in a 2015 press report when they brought in $434 million in revenue. Since then, Indeed has not released any official reports in regards to company earnings.
Note: Because Recruit Holdings Co., Ltd., the parent company of Indeed, is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Recruit Holdings’ publicly released financial reports, including annual reports, through Recruit Holdings’ investor section on their website.
What is the Indeed business and revenue model?
Indeed makes money through a few revenue models that they combine within their company, they are:
- Advertising based business model
- Subscription business model
- Business to business (B2B) business model
- B2B2C (partnerships) business model
- Mergers and acquisitions (M&A) business model
Indeed funding, net worth, and valuation
Indeed’s Crunchbase profile shows Indeed has raised $5 million over 1 round.
On October 1, 2012, Indeed was acquired by Recruit Holdings for an undisclosed amount.