Monster Networking

Thomas R. Eisenmann; David Andrew Vivero

Case | HBS Case Collection | April 2005 (Revised February 2006)

Monster Networking

by Thomas R. Eisenmann and David Andrew Vivero

Abstract

The management at Monster.com, the leading U.S. provider of online recruitment services, must decide how to proceed with Monster Networking (MN), a new business launched in late 2003. MN helps users identify other individuals who can offer career advice. Monster.com management views MN as: a vehicle for reducing the cost of attracting job seekers to its core matching services and a potential source of subscription revenue. As of early 2005, MN's performance has been mixed. Networkers were deeply engaged, but subscription revenue growth was disappointing. In the face of this performance, Monster.com management must decide whether to proceed with its original plan, eliminate subscription fees to boost traffic, augment MN's scale by acquiring an online social networking start-up, or simply terminate MN.

Keywords: Technology Platform; Online Technology; Social and Collaborative Networks; Recruitment; Service Industry; Employment Industry; United States;

Format: Print

21 pages

Educators Purchase

Citation:

Eisenmann, Thomas R., and David Andrew Vivero. "Monster Networking." Harvard Business School Case 805-145, April 2005. (Revised February 2006.)

The case provides students an opportunity to examine the founding of an e-commerce startup that used storytelling and compelling images to sell furniture and home accessories to millennials. The case describes the rapid sales growth the company experienced, as well as the challenges it faced with operations, delivery, and order tracking. Finally, the protagonist is poised to raise a Series C financing he hopes will value the company at $200 million.

eSig, an early-stage startup, offers an electronic signature application as a "freemium" product, i.e., users can upgrade from a free basic version to a premium version by paying a subscription fee. Using 9 months of data from 50,000 user activations (available as a case supplement), students are asked to project the number of new users eSig will acquire in Q1 2016 and recommend how much they should spend during the quarter on each major marketing channel (e.g., Facebook ads, Google ads, content marketing, etc.). Note: the name and functionality of the actual freemium application upon which the case is based have been disguised.

Faculty & Research

Monster Networking

Abstract

Citation:

About the Author

More from the Author