Businessmodel of Xing
Customer Segments
Xing primarily serves corporate clients, spanning individuals, headhunters and recruiters, and companies. Its customer base is not limited by industry, with the Company including companies from various sectors among its customers. In 2015 the Company recorded more than 45,500 Premium/Network subscribers, more than 770 E-Recruiting customers and more than 1,800 Events customers.
Xing’s customer base is based primarily in Germany, Austria and Switzerland. In 2015 these customers accounted for around €114.7 of the Company’s total revenue. International customers accounted for just under €5.3 million. The Company is not reliant on any one major customer. Xing includes among its customers BMW Group, DLD, ExpoPharm and Success Resources.
Value Propositions
Xing provides value to its customers through its accessibility – its functionality being available via a number of mobile and desktop applications and websites, its pricing – with some basic functionality available at no cost, its technical support services, and its constant product development.
Channels
Xing’s products and services are available through its proprietary social platform hosted at www.xing.com. It also provides a range of mobile and desktop applications for users to utilise the Company’s services and tools while on the go.
In addition to its own homepage, Xing provides complementary tools to its customers through the several other websites. The Company has linked the functionality of www.lebenslauf.com, which it acquired in 2014, to that of its main platform, and provides ancillary services through the related www.anschreiben.com and www.bewerbung.com websites.
Xing offers its customers a range of mobile and desktop applications in order to access its services. This principally includes the flagship Xing app, Xing Stellenmarkt, Xing Events, and Xing for Outlook. The Company’s apps are available across Android, iOS, and Windows Phone, as well as on Windows and Mac desktops.
Customer Relationships
Xing’s products and services are available on a largely self-service basis, in particular its basic social platform functionality. Users are able to sign up to the platform from the Company’s homepage with no interaction with sales personnel necessary. Once registration is complete users can access the platform and its tools from the Company’s website, desktop apps and mobile apps, managing their accounts autonomously.
As a social network, the Xing platform and content is primarily community-driven. Xing users generate discussions, organise events, schedule meetings and collaborate on projects themselves, with Xing not contribute more is necessary from a regulation point of view.
Xing provides its customers with ongoing technical support and assistance, with users able to contact the Company’s support staff directly via email, fax and post in order to receive personal care for their individual issues. The Company can also interact directly with customers through its blog and its social media accounts.
Key Activities
Xing is a German technology company. It develops and operates a social network for business professionals in German-speaking countries, notably Germany, Austria and Switzerland. The Xing platform enables professionals from a variety of sectors to organise meetings, search for jobs, take on new assignments, collaborate on projects, and generate and share business ideas.
Xing operates through three segments: The Network/Premium segment, which consists largely of the basic platform functionality, mobile applications, and advertising and editorial content; the E-Recruiting, through which the Company provides active and passive recruiting products on pay-per-click or fixed-price bases; and the Events segment, through which the Company provides assistance to event organisers in the form of management tools. Xing also operates a job search engine through its subsidiary Competence Center.
Key Partners
Xing primarily partners with app and software developers. It also has some strategic tie-ups with technology companies and corporate networking providers.
Xing manages a network of developer partners through its Xing developer portal. It provides developers with access to its API in order for them to add Xing data and functionality to existing applications, integrate third-party functionality into Xing’s platform or create third-party apps with Xing data from scratch.
Xing has previously partnered with corporate information provider ZoomInfo to help power its search engine, with QuestionPro to provide additional premium functionality to its subscribers and with Barcinno to market the Company’s platform and services to Barcelona’s tech and start-up community.
Key Resources
Xing’s key resources are its software platform and technology, its IT infrastructure – including server space and data centres, its personnel – notably those working within the development and engineering team, and its network of developer and strategic partners. While Xing’s technology and trademarks are key to its continuing success, searches of records held by the German Patent and Trademark Office identified no patent applications filed in Xing’s name.
Cost Structure
Xing incurs costs in relation to the development of its products, the maintenance of its IT infrastructure – including server hosting, administration and traffic costs, the management of its partnerships, the retention of its personnel and the marketing and sale of its products.
Xing increased its spending on marketing in 2015 by €4.6 million year-on-year, representing 11% of total revenue. The Company also spent around €4.4 million in 2015 on expenses for its various premises, and €45.3 million on personnel costs such as salaries and benefits.
Revenue Streams
Xing generates revenue through a range of fee-based products and services, the majority of which are provided on a subscription basis.
The Company’s Network/Premium segment generates revenue through two fee-based membership accounts: Premium and ProJobs membership, which are available for between €7.95 and €39.95 per month, while the E-Recruiting segment generates revenue through fixed-price and pay-per-click advertising models. The Event segment generates revenue by charging a fee of €0.99 per event participant plus 5.9%.
In 2015 Xing recorded an annual revenue of €122.9 million, up 21% on the €101 million generated in 2014. The Network/Premium segment, which covers much of the basic Xing platform features, continues to be the Company’s largest revenue generator, accounting for €73 million of revenue in 2015. The E-Recruitment segment accounted for €41.4 million and the Events segment generated €6.2 million.