White Label Recruiting Software Boosts Tech Company Revenue

Multiple Profit Centers is the Key to Tech-Company Success

The most successful global tech companies have multiple products. Would Amazon be where it’s at if it had just stuck with books? What if Google was just a search engine? Adding new solutions allows companies to expand their customer base, grow their market value, and, most importantly, create multiple revenue streams, which help these companies grow into business behemoths so ubiquitous they’ve become part of our lexicon.

Successful businesses of all sizes and across all industries know the key to continued growth is creating new revenue streams and multiple profit centers. “Businesses and non-profit researchers have long argued that by establishing and maintaining multiple streams of funding… organizations are able to avoid excessive dependence on any single revenue source, stabilize their financial positions, and thereby reduce the risk of financial crisis,” writes Peter Frumkin and Elizabeth K. Keating in Diversification Reconsidered. 

Toast and Rippling are good examples of on-the-rise tech companies that got to their current positions with multiple revenue streams. 75% of businesses fail at launching new initiatives and markets. That’s dangerous for those businesses since McKinsey found that if SaaS companies only grow at 20% annually, there’s a 92% chance they’ll close shop within a few years.

Gartner’s CIO Agenda found more than 80% of tech organizations are moving quickly on new development initiatives designed to make them more innovative, resilient, and competitive.

While it’s easy to become complacent when your tech company has steady revenue growth—especially if you already have multiple revenue streams—the tech industry has never been more crowded…or competitive. The point of this post is to share key reasons why white labeling recruiting software—something we here at HiringThing have used to help tech companies grow—is a quick and efficient way for your tech company to add viable revenue streams based on a service your users inevitably need.

What is White Label Recruiting Software? 

White label software allows tech platforms to rebrand and sell prebuilt software solutions as proprietary. For companies looking to build new profit centers/revenue streams, white labeling is an attractive option since it’s quick, doesn’t require technical expertise, and provides assistance in growing revenue. 

How White Label Recruiting Software Can Help Tech Companies Generate Revenue

• Recruiting Solutions Are an Evergreen Need
• Monetization is Key to Company Growth, and New Solutions Are Key to Monetization
• Expanding Into New Markets Means Expanded Revenue Streams 
  
• Retain More Customers

Recruiting Solutions Are an Evergreen Need

Hiring has proven to be a top challenge for businesses across all industries over the last few years. With how quickly the world of work has been evolving, it’ll undoubtedly remain a top challenge for years to come.

• 52% of small businesses say recruiting and retaining top talent is the top problem they face.
• 74% of organizations felt their recruiting strategies were underperforming in 2022.
• 64% of companies utilizing HR tech achieve measurable business value from their HR SaaS investments.
• 73% of companies increased their investment in talent acquisition technology in 2022, and 52% plan to further increase that in 2023, according to Aptitude Research.

Recruiting solutions will never not be needed, especially if you can market your recruiting solutions as tailored to the industries your tech company serves. 

You want to add new revenue streams your customers need. Here at HiringThing, we can work with you to ensure you’re correctly marketing your ATS to your particular customer base. One of the strongest appeals of a white label partnership is that the white label vendor—us here at HiringThing in this case—are deeply invested in your success and growth. We have stakes in making sure your new profit center works. 

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Monetization is Key to Company Growth, and New Solutions Are Key to Monetization

Many tech companies focus on customer acquisition and retention to increase profits. A white label ATS can surely help with those, but savvy tech companies will monetize this new solution for existing customers to create new revenue streams. One of the fastest ways to grow business is to increase the average revenue per user (ARPU) generated annually by your clients. Raising prices is a way to reflect your platform’s new value add.

Many tech companies operate under the false assumption that changing pricing will alienate customers, but that’s not the case if you’re offering a product and service your customers need—Netflix has changed its pricing 8 times since April 2014 in the US alone and has still grown from $1.3B in revenue to $5.5B in revenue in the same time frame. 

Every new solution a SaaS provider adds to their platform increases their solution's value to existing and potential customers—monetization is 4x more efficient than acquisition and 2x more efficient than retention at improving revenue growth.

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Expanding Into New Markets Means Expanding New Revenue Streams

Expanding into new markets is vital for tech companies looking to grow. Luckily, the ATS market is booming, allowing you to reach potential new customers with a solution they seek—68% of recruiting professionals say that investing in new recruiting technology is the best way to improve recruiting performance.

• 83% of SaaS executives found an increased need for new products and services in 2022. A private label ATS accomplishes both.
• Businesses of all sizes purchase HR technology (like an ATS) to gain greater functionality—white labeling an ATS can help you cover the full breadth of the HR cycle.
• 89% of C-Suite executives and 83% of HR leaders say HR tech enables them to be more flexible and responsive to the constantly shifting world of work.

98% of Fortune 500 companies utilize an ATS, but that doesn’t mean there’s no room for your new solution in these markets— 39% of companies plan on replacing their SaaS applications with ones with better functionality. Additionally, only 35% of SMBs use an applicant tracking system—60% of this market still needs to be converted. 

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Retain More Customers

Companies churn through 30% of their technology platforms each year—fighting customer churn is a priority for all tech companies since churn directly lessens all your revenue streams. 

Studies show that SaaS companies selling more than one solution increased retention by nearly 20%, while SaaS providers with at least four solutions show an 80% retention rate. Adding more relevant solutions to your SaaS stack can improve customer retention. 

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New White Label Recruiting Revenue Stream Strategies

It’s important to have a strategy for making your new revenue stream successful. What’s your rollout plan? How are you going to incentivize your staff to sell it? Is it integrated into your long-term growth strategy? Chat with one of our Business Development Specialists to start strategizing today.

About HiringThing

HiringThing is a modern recruiting and employee onboarding platform as a service that creates seamless talent experiences. Our white label solutions and open API enable technology and service providers to offer hiring and onboarding to their clients. Approachable and adaptable, the platform empowers anyone, anywhere to build their dream team.