Honeypots new subscription model leads to better results for companies and talents
Product Eli McGarvie
Our mission at Honeypot is to help companies and developers find each other. We constantly strive to improve this. That’s why, in the last two quarters, we tested several things to understand what could help our clients have more success on our platform.
We started by investigating the hiring process itself and the pain points of our clients. We suspected that clients would be more successful if they were not constrained by the traditional commission-based hiring model.
We started testing out a subscription model in 2020 and found that our clients hire 3 times more talent on average than in the old commission-based model.
Why did the subscription model lead to so many more hires?
Commission-based hiring is built around short-term wins rather than long-term trust. It’s designed to solve one problem at a time. The focus of a commission based model is not a long-term relationship but rather ‘the next hire’. We know tech recruiting can be notoriously difficult and complicated, and the only way to master it is through reliable partners and processes.
In the past several months, we have found that businesses on the subscription model hired three times the amount of talent and they did it more quickly. They have the freedom to branch out and take full advantage of our Client Success team, which is composed of experts on the tech recruitment process. That means recruiters are able to take a real deep dive into how they can better their processes.
Our team is able to advise on:
- how to determine a competitive salary
- how to efficiently invite and screen talent
- best practices to improve the recruiting process
- and any other day-to-day topics related to hiring developers
Under this new model, we have already seen clients hire over ten IT professionals in just a few weeks. With a commission-based model, that would have been very expensive for the hiring companies. Such high costs can slow down, or even stop the hiring process for many companies. However, because this was based on a subscription model, the hiring companies were free to keep hiring. They had the flexibility to choose a plan that worked for them and that made financial sense. Plus, the subscription model made it easier for companies to plan costs and allot resources.
“Honeypot will always focus on the developers and nothing will change for our developer community. But now is a good time to put an additional focus on pricing for companies that need to hire tech talent on a large scale. So we are taking a new path away from a commission-based pricing and towards a subscription model. Companies will pay a monthly membership fee and then be able to hire developers free of additional charges via Honeypot. This will enable us to build long-term partnerships with our customers and provide personal and individual help in building great tech teams.” Philipp Goos, CEO at Honeypot
The timeline and how to make the switch
On November 1st 2020, we officially announced that we would be changing from a commission-based model to a membership-based model with dedicated assistance for all clients.
Starting April first, the Honeypot platform will only be available to subscription customers, for German and Austrian customers. We would like to ask any customers based in these countries to be sure they have signed a new subscription-based contract in order to avoid any disruptions. Those who have not yet made the switch to reach out to their Client Success Manager, or email us at [email protected]
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