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Thursday, June 07, 2007

Changes are afoot at Monster

posted by 
David Manaster (212)

Let’s face it. A lot of people hate Monster.

Threads like this one on Techdirt are not uncommon. When I solicited questions for Doug Klinger, then Monster’s President - yesterday, Monster announced that he had left the company in a reorganization – it surprised me that the questions that I got for him from recruiters were mostly related to the job-seeker’s experience. All of the questions were symptomatic of what I view as Monster’s main problem - they have shown themselves to be willing to sacrifice the job-seeker’s experience on the site in order to squeeze in a few more dollars from advertisers.

Monster has always had a sales and marketing culture – today, its sales force is over 1,100 strong (including the International division). This is not a bad thing. The emphasis on sales and the Monster brand has largely been responsible for Monster’s success, sending revenues soaring to over a billion dollars in 2006 and creating a ubiquitous brand in the United States that is rapidly growing on a global level.

Monster may never have been the most usable site, but in the beginning visitors to the site were delighted by the combination of the online job-hunting experience (compared to print classifieds) and the whimsy of the colorful characters. Today, that interface can be more frustrating than delightful.

The problem is that the pendulum has swung too far towards short-term revenue generation, and it is coming at the long-term expense of the Monster brand. Jobseekers who conduct a search first have to wade through interstitial advertisements, with hard to find “no thanks” links buried at the bottom, before getting to their search results. Once there, they need to contend with work-from-home scams that are laden with keywords so that they will appear in a variety of search results. (From that post: “You also will be able to order a decision package that normally costs $39.95, but for a limited time, you can review our decision package for 14 days for $9.95. Our decision package contains about 2 hours of information to help you decide if this opportunity is right for you. You are covered by a 90 day money back guarantee if you should decide that this is not for you. Although Monster has reference to job placements, this offering is for a Work at Home business opportunity and is in no way to be construed as a job offering.”)

At the Monster Executive Customer Forum, Sal Iannuzzi, Monster’s new CEO, made an announcement that convinced me that they are finally heading in the right direction. He said that Monster will begin curbing interstitial advertisements on their web site, and also that they will not be renewing the contracts of companies posting work-from-home opportunities.

It’s the right move.

In conversations with Monster executives they made it while the new direction has been set, it is not yet clear exactly how they will be implemented. There are existing contracts with many of the advertisers that mean that Monster won’t be able to simply “flip the switch” on the work-from-home ads, and exactly how many of the interstitials are on the chopping block is not clear. When these changes will be implemented is also not yet clear.

My understanding is that today Monster does not have an internal advocate for the customer experience (think Craig Newmark) on staff. They should, because any time that they put barriers in the way of the job-seeker for short-term profit, they are jeopardizing their future.



posted 6/7/2007 at 2:42 p.m. PT permalink | comments (1) | trackbacks (0) | email this posting
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Their place in the ecosystem
posted 6/8/2007 at 10:39 a.m. PT by Martin Snyder

is the real problem. There are hundreds of thousands of career sites now, and their big revenue customers have increasingly complex needs while Monster's model is locked in a simple state by market forces and real-world brand contraints. Their current ability to deliver value is strong, but narrow.

Regardless of ownership, Monster still has multiple potential futures. The odds vary with the owners, but good things could happen.

I think they should rebrand the job board, as almost a public institution. Make it quasi-open to competitors and technology firms, lower the costs of entry to postings, and rethink the value model in terms of what they can to solve talent problems for customers.

Monster could help with everything from recruiting / RPO, to technology, to assessment and performance, to development, and beyond. They can buy, partner, and develop offerings in any array. The site could be talent central for hundreds of thousands of firms in fifteen years.

Any rep carrying a Monster card and selling a solution is going to get a hearing, and if the solutions are integrated, effective, and cost-effective, they are going to get deals.

They are a real case of a point source solution well positioned to become a high value/profit talent management vendor- but that is an expensive and semi-risky transition. They would seem to be a better player for that game than your average big-dream ATS vendor, or even your average big-time consulting outfit. Dont look now, but I think Deloitte is making a move too.

Or they can keep selling job postings and access to semi-structured candidate pools and monetize (mine) the lode for what its worth, and then off it as a brownfield in a dozen years, or fewer.

If it goes private equity, I'd bet on the latter.




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