Japan Dev · B2B · Japan developer job board
Add a growing monthly fee to the contract for hires companies don't report
Founder believes cheating is rare; no numbers
What they did
What happened
This shipped together with other changes, so the result can't be credited to this alone.
In their words
$60k/m from a job board
Pete Codes… let's say you get hired, uh and it kind of it m- helps to keep the companies honest, because if someone If, you know, Sarah gets hired through the your newsletter and she can see that she can get a voucher from you, and just be like, "Oh yeah, I just got hired by this company. Like, I'd like my voucher." Then you can like message company, and just be like, "Oh, Sarah just got in touch, and blah, blah, blah." So, was that kind of your intention?
Eric Turner… as a heuristic, as well. And then, potentially do some other things, like, you know, l- just look at that list later. And if there's one company where it's like, "Okay, we've had this huge number of people, like hundreds of people applying and no one's joined yet," then I kind of know when that's like odd given like my normal averages for like number of applicants per hire, things like that. So, I can kind of go and look deeper at that list, um, you know, maybe do a little bit of sleuthing on uh various, you know, like LinkedIn, places like that. So, I have that data. So, I can always kind of go back um as necessary. Now, I also have a um like a fee actually in the contract, so, you know, there's basically a a certain percentage that they have to pay every month that they have a new hire that they don't tell me about. So, yeah, I try to deincentivize it in a lot of different ways. Um, and I think, ultimately, like, you know, I charge like a pretty fair price and everything. So, I just don't think there's that strong of a incentive for them to to lie and kind of ruin the relationship with us. Um, so, yeah, it's something I definitely monitor, but you know, it the business model is definitely viable at least in Japan. You know, I've never tried it in the US. I don't know if the dynamics might be a little different. But it's working really well for me. So, yeah.
Pete Codes… if they're going to be like stupid and like blow up the working relationship, and not, and get banned from your platform just for the sake of one hire, it's probably not very smart. Um, would you mind going into like how Cuz, I imagine that's quite a weird Well, a hard thing to get a lawyer to do or something, or like, can you go into like how how you got a kind of legal agreement drawn up and like how much that cost, if you don't mind roughly?
Eric TurnerYeah. Um. I did essentially use a lawyer. Um, I went online, basically, read reviews and stuff, try to find someone who I felt kind of knew the industry, um, you know, had worked with startups in the past. And just kind of explaining to them the basics that I wanted. They They gave some advice as well, which is pretty helpful actually. Like, "You're going to want this clause, not that clause," or whatever. Um. So, yeah, worked a little bit with them, and then they went and, you know, basically drafted it for us. Um. I don't know. I want to say it was like around $1,000 or so, so not super cheap. You know, it was a significant expense, uh especially early on when we weren't really earning uh any revenue yet. So, yeah, it was …
Pete CodesYeah. No, that's awesome. I mean, I think the fact that Okay, it's $1,000, but like, you know, you get one uh you get one company that hires through your site, and that pays for it. So, it's kind of like True. It is a lot of money, but you just need one customer, and then it's paid for, and then it's it's done. So, um, where where exactly did you like Um, or rather, why did you start the site in the prob- in the first place? Is there a problem …
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More from this episode
- List jobs free and charge a fee only when someone gets hiredSales converted pretty well; business at ~$60K/month
- Give job seekers a ¥3,000 gift card for reporting their hireCatches unreported hires at a 'pretty good hit rate'
- Collect applicants' name and email before sending them to the company's job page
- Sign your own employer first, then use its name to sign othersNext two companies came relatively easily
- Post jobs free and write each company's English profile and job adsEnough to land the first few companies
- Grow the job-seeker side with SEO and an email newsletterSlow: ~12 months to first revenue; traffic grew steadily over years
- List only ~100 good companies and turn down most who ask to joinFounder credits curation for making the model work; no numbers
- Pivot to a job board after visitors kept looking for an apply buttonLed to the first paying clients
- Have companies report hires within ~5 days; refund only part in month one
Tags: contract, late-fee, legal