BUSINESS MODEL REVENUE MUDDLE

BUSINESS MODEL / REVENUE MODEL

BM/1

RecruitGum proposes to adopt following business model :

A. Corporates & Jobsites

RecruitGum will make available to Corporates (end–employers), Placement Agencies (middlemen) and to Jobsites its GumMine / GumSearch software applications through a licensing agreement.

These softwares/applications will be installed on the local servers of the “licensees”.

For use of these softwares/applications, licensees will pay to RecruitGum (the licensor) a certain amount for each resume processed (extracted) through GumMine, subject to a minimum monthly charge. Once a day/month, all resumes extracted are uploaded onto RecruitGum’s webserver. The webserver estimates the number of resumes processed during the month, based on which RecruitGum will invoice the concerned licensee.

This arrangement, being a “pay-per-use” and “pay-when-use”, is ideally suited for small/medium enterprises, which are most reluctant to make a heavy upfront investment (often running into lakhs of rupees), for a software application whose utility/usefulness/benefits are vague and unknown at the time of purchase.

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BM/2

Since, in our case, there is no upfront payment for these softwares (except for a small installation/activation charge), the licensee’s RISK is absolutely minimum.
He pays only if he benefits using these softwares. And he is certainly not going to use these unless he sees/feels clear benefits in using it!

Again, a licensee only pays for extraction (i.e., GumMine) of each resume.

A licensee gets to use GumSearch (search software) absolutely FREE! So, even if he stops using GumMine, he still gets to use GumSearch absolutely FREE.

Everytime RecruitGum introduces a new version of GumMine (GumSearch), it will intimate the licensee, who can then download the latest version from RecruitGum.com, upon payment of a nominal “UPGRADE” charge.

BM/3

Since a licensee’s resume database resides on his own local server, he has no worry/fear of “unauthorised access” from a third party. He can install his own data-security measures! This will vastly increase the acceptance-level of GumMine/GumSearch amongst the licensees.

Once again, by making our recommended “pay-per-use”, at a very nominal charge per resume extracted, and by not having any upfront fee/charge, we hope to increase its acceptance amongst a large no. of small/medium size companies whose daily processing may not be 100–150 resumes. Even they would find it very economical to install/use GumMine/GumSearch.

We believe, GumMine/GumSearch will be of considerable importance to Placement Agencies & Jobsites who are constantly on lookout for better ways to satisfy their Corporate clients.

In relation to Placement Agencies and Jobsites (which deliver to their Corporate clients, plain text / unstructured / unformatted resumes), these placement agencies/jobsites which deliver ImageBuilder version of resumes to their clients, would gain a distinct “Competitive Advantage.”

BM/4

By delivering ImageBuilder resumes, they would be:

→ Vastly reducing their clients’ recruitment cycle & cost
→ Increasing the productivity & performance of the HR dept
→ Increasing the “throughput”
→ Improving the “decision-making”
→ Enhancing the “quality” of appointments.

Such a “Value-Added-Service” on the part of placement agencies & jobsites, would be greatly appreciated by their Corporate clients, which, in turn, would bring for them, more clients & more revenue.

BM/5

B. Jobseekers

RecruitGum’s vehicle for serving millions of jobseekers is:

World-Wide-Jobs.com (WWJ)

Through WWJ, RecruitGum plans to deliver latest/relevant job-alerts to jobseekers, as SMS on their mobiles.

Not only that, WWJ will enable a jobseeker to “Apply Online” against any such SMS directly from his mobile and from wherever he happens to be, WITHOUT NEEDING A PC / INTERNET!

“Supply-chain”

WWJ is downloading thousands of job-ads everyday (only those posted during last 24 hours) from dozens of jobsites.

By “aggregating” job-ads from dozens of jobsites, WWJ has neatly solved its “supply-chain” logistics and completely automated the “process.”

In long-term, WWJ will enter into “Strategic Alliances” with major jobsites, under a UNIQUE, database exchange program.

BM/6

DELIVERY / DISTRIBUTION

→ For delivering job-alerts to candidates, WWJ is in the process of tying-up (MSP) with all the mobile service providers of India.
The job-alert SMS will get delivered thru MSPs who will charge their subscribers for MO (mobile-originated) as well as MT (mobile-terminated) SMS.

→ MSPs will share their revenue with WWJ.

→ Since MSPs are keeping for themselves a major share of the JAM SMS revenue, they will on their own carry out all marketing / selling / promotional activities.
WWJ will not be required to spend anything on these activities.

→ MSPs will also take care of all accounting / billing / payment collection activities for this value-added service to their mobile subscribers.
This means WWJ will not be burdened by these and will not need to spend any effort/money on these activities.

BM/7

In course of time, we plan to extend WWJ / JAM activity to other English-speaking countries such as USA / UK / Canada / Australia etc., by tying-up with the mobile service providers of those countries.

At present, India has a mobile subscriber base of 50 million. By end of 2007, this figure is expected to cross 200 million.

It is also very clear that in the next 5 years, a smart mobile phone will be very common and will become THE DEVICE OF CHOICE for a consumer conducting all of his e-commerce transactions!
Mobile phones will make deep inroads into companion shopping for not only goods but also for services.

For a jobseeker, SMS job-alerts are a kind of “comparison shopping” and the ultimate convenience.
The ability to “apply online” from one’s mobile, is bound to make the old (traditional) jobsearch (on dozens of jobsites) DEAD!

For millions of jobseekers, WWJ / JAM will become their JOB-NIRVANA.