[ernie] The Interbiznet ERNIE_00.10.12

["Carrie Baggs" <interbiz@thedtb.com>]

		interbiznet this week   (through October 12, 2000)
interbiznet.com Electronic Recruiting News Our Rate Card S P O N S O R S Receive email when this page changes   Click Here Find out more About IBN Got a news tip? Tell us at news@ interbiznet.com Our Rate Card Presentations     - Basic (PDF)     - Strategy (PDF) Recruiting Trends Archives Recruiting Eyeballs Key Industry Suppliers Resume Databases (Over 60) Company Job Listings (Over 4000) Salary Surveys NATSS Enterprise Fidelity HR Live HR Online SHRM Workforce Mag DejaNews Suggestions? It is better to not be on the web than to be on and not know why John Sumser Reality is more complex than it seems. John Gall It's better to do a few things really well than than to do a lot of things badly. If you can't make the necessary commitments of time and energy to your electronic marketing efforts scale back your plan. John Sumser All material on this website is the property of IBN (The Internet Business Network: interbiznet.com) You may download a copy for personal use. Redistribution without permission is strictly prohibited. All material on this site is © 1995 - 2000 by IBN OUR HOME	Daily News. Archived Weekly. Click Here For The Current Issue. Click the 'OK' to make the ERN your default homepage Read Today's Interbiznet Bugler 2000 ERI Executive Summary Requires Acrobat. The 2000 ERI is now available. Order your copy today! If you wish to receive the Electronic Recruiting News as a daily email, please use the form at the bottom of the page to subscribe or unsubscribe. Thank you - Interbiznet Staff Foundations Of an SBB (Part 1) (October 12, 2000) We like the human-ness of a Single Belly Button (SBB). Really, what's required is a combination of a human being, lots of coherent data and a data interface. In the old days, when labor was abundant, recruitment advertising transactions were expensive and advertising opportunities were extremely limited, this person was called an Advertising Agency Rep. Although the Bernard Hodes organization was smart enough to get out of the job board business, the agencies have lost credibility with their customers. Can you really expect the TMP advertising sales force to be objective when they are pumping their Monster product line? We assume that the Hodes team will start really using this difference to their advantage. Objectivity is the single most important thing that an SBB can bring to the game. It is impossible to achieve that objectivity when you own one of the properties that you are selling. While we believe that Monster has earned its place as the default source for online recruiting transactions, the TMP strategy comes at the expense of traditional (and contemporary) advertising service delivery. The fact that Chief Monster (TMP's new executive level offering) competes directly with a core constituency (Search Firms) isn't lost on those firms. We've gotten large numbers of letters from the emerging "Just Say No To Monster" campaign. Third party firms (their postings are the foundation of Monster's success) are beginning to realize that TMP has organized to compete with them directly. In other places (Canada, Australia and Europe), the historical distinctions between search firms and ad agencies are not as clear as they are in the US. Most of the Recruitment advertising business in those places is filtered through the Search Firms as an upsell. They position advertising as a performance accelerator in a contingency contract. While we're certain that TMP will bring that concept to the American market, the Achilles heel in pricing is that the non-US approach always involves an arm's length transaction. Objectivity is impossible when the thing held at arm's length is your own hand. By directly competing with its core customers, Monster is sealing its fate as a large player in the sourcing business. It's not a bad position unless you are selling infinite growth to Wall Street. Monster clearly won't be going out of business anytime soon. But, they jeopardize their upside with a number of their current market moves. No objective middleman can deliver from its own arsenal. Advertising Agencies that wish to seize on this market opportunity are caught in a pricing dilemma. 15% of a job board posting isn't enough to cover the cost of answering the phone. A business built on the basis of a percentage of media placement fees is in a terrible position to deliver SBB services. As the competition intensifies and pricing drops, the revenue to be gained from transaction involvement becomes negligible. Traditional ad agencies are limited by practice to an unenviable position. The web counterparts (firms like IIRC) are also limited by the same factor. 15% of web transactions is not enough money to keep the doors open. This is why those companies have not grown more rapidly. SBB services can not be adequately delivered using a percentage of cash flow. In order for an SBB to emerge, it will have to be a very clever combination of technology (one stop posting or robotic posting), market feedback (relative performance data), media planning, results measurement - tuning, site traffic development and hourly consulting. The last three items are where the margin is. - John Sumser Contacting Us: Call, fax, write, email. We'd love to talk about your project. All material on this site is © 1995 - 2000 by IBN: interbiznet.com (The Internet Business Network), 346 Starling Rd., Mill Valley, CA 94941 415.380.8244 staff@interbiznet.com   To Subscribe or Unsubscribe From the ERNIE... 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