How Does Glassdoor Make Money? Glassdoor Business Model In A Nutshell

Glassdoor is an employer review platform enabling millions of users to grade corporations. Glassdoor monetizes its platform through Job Listings ($249 per opening), Job Advertising (according to the number of jobs promoted), Employer Branding, and through the Glassdoor Review Intelligence (a brand’s sentiment analysis platform).

Origin story

Glassdoor is a platform enabling current and former employees the opportunity to anonymously review their employer.

The company was founded in 2007 by Tim Besse, Robert Hohman, and Rich Barton.

During a brainstorming session, Barton recounted the story of unintentionally leaving an employee survey on the printer while working at Expedia.

The men began to consider what might have happened had the information been released to the public.

While far from an ideal scenario, they nonetheless agreed that survey data would be extremely useful for those looking to make informed career decisions.

The following year, Glassdoor launched a website collating company reviews and salaries from employees of large companies. Salary data was then averaged and listed with former employee reviews regarding management culture.

Value Proposition:

  • Anonymous Employee Reviews: Glassdoor allows current and former employees to share honest and anonymous reviews about their workplace experiences. Job seekers benefit from real, unfiltered insights into company culture, management, work-life balance, and more.
  • Salary Information: Glassdoor aggregates and displays salary data, helping job seekers understand industry-standard pay ranges for specific roles. This empowers candidates to negotiate better compensation packages.
  • Job Listings: For employers, Glassdoor offers a platform to list job openings, attracting candidates who are not only looking for jobs but have also researched the company through reviews and ratings.
  • Employer Branding: Employers can enhance their company profiles, showcase their workplace culture through photos and videos, and respond to reviews to improve their employer brand.
  • Review Intelligence: Glassdoor provides sentiment analysis and insights from employee reviews, helping businesses identify areas of improvement and enhancing their employer reputation.

Customer Segments:

  • Job Seekers: This includes individuals actively seeking employment or exploring potential job opportunities. Job seekers rely on Glassdoor to access company reviews, salary information, and job listings to make informed career decisions.
  • Employers and Recruiters: Employers, HR professionals, and recruiters use Glassdoor to attract and evaluate talent, improve their employer brand, and gain insights from employee feedback. Glassdoor’s paid services are designed to meet the needs of this segment.

Distribution Strategy:

  • Online Platform: Glassdoor operates a user-friendly website and mobile app, making its platform accessible to job seekers and employers worldwide. Users can access company reviews, salary data, job listings, and employer profiles online.
  • Mobile App: Glassdoor offers a mobile app for job seekers to access reviews, job listings, and salary information conveniently on their smartphones.
  • Employer Services: Employers and recruiters can access Glassdoor’s employer services, such as job listings, advertising, and branding, through the company’s website and dedicated employer portal.
  • Marketing and Partnerships: Glassdoor engages in online marketing efforts to attract both job seekers and employers to its platform. It also forms partnerships with other job-related websites and organizations to expand its reach.

Marketing Strategy:

  • Content Marketing: Glassdoor creates and shares valuable content such as blog posts, salary reports, and workplace-related articles. This content helps educate job seekers and employers about the importance of company reviews and salary insights.
  • User-Generated Content: Employee reviews and ratings form the core of Glassdoor’s content. Encouraging users to leave reviews and share their workplace experiences is an ongoing part of the marketing strategy.
  • Social Media: Glassdoor maintains an active presence on social media platforms, sharing user reviews, job listings, and industry insights. This helps in engaging with a broader audience and driving traffic to the platform.
  • Employer Outreach: Glassdoor collaborates with employers to improve their profiles and responses to reviews. This encourages more companies to engage with the platform and maintain a positive online presence.
  • Online Advertising: Glassdoor invests in online advertising to promote its services, attract job seekers, and encourage employers to use its paid features.
  • Partnerships: Glassdoor forms partnerships with employers, recruiters, and job boards to expand its job listing offerings and reach a wider audience.

Glassdoor revenue generation

From humble beginnings, Glassdoor has grown to be much more than a simple review site

The company now helps businesses find suitable employees for vacant positions across three different plans: Free, Standard, and Select.

Each plan has different features and levels of functionality. Following is a look at some of the more pertinent features.

Job listing

Businesses that wish to post a job opening on Glassdoor receive the first three postings for free. After this point, Glassdoor charges a fee of $249 per opening.

For larger businesses with similarly large needs, Glassdoor offers more feature-rich packages.

Job advertising

Businesses can receive additional exposure to their job listings through targeted job ads.

Glassdoor charge for this functionality according to the number of jobs the business wants to promote.

Employer branding

Glassdoor also gives job advertisers the ability to optimize how they are presented to potential employees.

Many choose this option to remove competitor ads from their company profile. Others like to showcase their organization with branded photos and videos. A business also can see where it ranks against competitors in terms of employee satisfaction.

Again, prices are made available on request.

Review intelligence

Glassdoor has also found a way to monetize the original review system on which it was built.

Through its Glassdoor Review IntelligenceTM service, businesses can identify the hidden sentiment found in their reviews around such topics as management, culture, diversity, and inclusion.

This is achieved through natural language processing, which Glassdoor uses to transform review sentiment into high-level, actionable insights.

Ultimately, leadership can use these insights to improve the experience of their current employee cohort.

Pricing for this service can be obtained by contacting the Glassdoor sales team.

Understanding The Glassdoor Review Intelligence System

The Glassdoor Review Intelligence™ System is thought to enable companies to understand the sentiment around their brands from various standpoints. It leverages NLP to analyze reviewers at scale and guess. the sentiment around them (Image Source: Glassdoor Blog).

As Glassdoor highlights:

Review Intelligence™ is a powerful sentiment analysis tool that allows employers to unlock insights from employee reviews and understand the “why” behind their ratings, surfacing valuable patterns in feedback so you can better inform your employer brand strategy. Lengthy reviews are distilled into a clear picture of sentiment so employers can discover what’s working, what’s not, why and where, without having to parse through potentially hundreds of reviews. Review Intelligence™ automatically surfaces insights hidden in employee reviews, enabling talent professionals to more effectively drive improvements to their employee experience.

Key takeaways:

  • Glassdoor is an online job search platform. Originally, it was created to allow employees to anonymously share information about their former employer.
  • Glassdoor has grown from a humble review site comparing average job salary with employee satisfaction. Today, it offers a host of features to help employers connect with job candidates. These include a job listing, job advertisement, and employer branding service.
  • Glassdoor also makes money from employee reviews. Using natural language processing, the company gives employers valuable insights into how their organization is viewed from a cultural, management, or inclusion perspective.
Value PropositionGlassdoor offers a compelling value proposition to its users, including: – Company Insights: Providing access to employee-generated reviews and ratings of companies. – Job Listings: Offering a vast database of job listings. – Salary Information: Supplying salary and compensation data for various job positions. – Interview Insights: Offering interview questions and experiences shared by job applicants. – Work-Life Balance: Sharing insights into company culture, work-life balance, and benefits. – Diverse Job Categories: Covering a wide range of job categories and industries. – Career Planning: Assisting users in making informed career decisions. – Community: Building a community of job seekers and professionals.
Core Products/ServicesGlassdoor’s core products and services include: – Company Reviews and Ratings: Allowing employees to anonymously review and rate their employers. – Job Listings: Providing a platform for job seekers to find and apply for job opportunities. – Salary Data: Offering salary information, including median salaries and compensation details. – Interview Insights: Sharing interview questions and experiences submitted by job applicants. – Company Profiles: Creating detailed profiles for thousands of companies. – Mobile App: Offering a mobile app for job searching and company research. – Employee Engagement Solutions: Offering solutions for companies to improve employer branding. – Glassdoor for Employers: Providing tools for employers to manage their online reputation.
Customer SegmentsGlassdoor serves a diverse range of customer segments, including: – Job Seekers: Offering job search and company research tools to individuals seeking employment. – Employers and Recruiters: Providing tools to enhance employer branding and recruitment efforts. – HR Professionals: Assisting HR professionals with employer reputation management. – Job Applicants: Offering insights and guidance to individuals applying for jobs. – Companies: Providing company profiles and data for employer branding and competitive analysis. – Educational Institutions: Collaborating with universities and colleges to support career services. – Advertising Partners: Generating revenue through advertising and sponsored job listings. – Employment Consultants: Assisting career advisors and consultants in guiding job seekers.
Revenue StreamsGlassdoor generates revenue through various revenue streams: – Job Advertising: Earnings from companies posting job listings and promoting them. – Employer Branding Solutions: Generating revenue from employer branding services. – Recruitment Services: Offering recruitment advertising and employer-sponsored content. – Data Licensing: Licensing its dataset and insights to other platforms and researchers. – Glassdoor Plus: Charging a subscription fee for enhanced features and insights. – Sponsored Content: Earnings from sponsored company profiles and content. – Advertising: Displaying advertisements to users on the platform. – Analytics Services: Providing analytics and insights to employers and recruiters.
Distribution StrategyGlassdoor employs a strategic distribution strategy to reach its users and grow its platform: – Website and Mobile App: Offering its services through a user-friendly website and mobile app. – Search Engines: Optimizing content for search engines to attract job seekers and researchers. – Social Media: Promoting user-generated content and job listings on social media platforms. – Partnerships: Collaborating with companies, educational institutions, and other organizations. – Email Subscriptions: Sending job alerts and updates to subscribers’ email inboxes. – Community Building: Encouraging users to contribute reviews and insights to build a vibrant community. – Marketing Campaigns: Running marketing campaigns to attract new users and employers. – User Engagement: Focusing on user engagement to maintain a thriving platform.

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