Reed.co.uk's decision to start charging firms to advertise recruitment posts has set tongues wagging about whether it is cashing in on its market-leading status.

Reed always prided itself on offering a free advertising service, but from 19 November, when it launched its new online products, including the largest searchable CV database and a Guaranteed Response vacancy service, recruiters will be charged for posting more than 500 adverts a year.

Several of reed.co.uk's customers labelled the decision a "rip-off" on UK Recruiter's web forum.

However, reed.co.uk reassured clients and jobseekers that the pricing structure was necessary to remain the most competitive in the industry.

A spokesman told Recruiter: "We haven't reneged on our promise to offer a free service to recruiters because it is still free for the first 500 posts.

"I don't think anyone would have anticipated the success of free recruitment. But there are significant overheads to maintain, manage and enhance our recruitment service.

"We will only be charging the high value 'industrial' use clients. The paid-for service is a value-added service that we have developed and our new products will take the service to the next level."

Founder of kangerooster. com and former Totaljobs chief executive Keith Robinson said the move may prompt industry conjecture about what chairman James Reed might realise for selling his company's "hugely valuable" asset even with moneterising.

"Everybody in the industry has always said, when will Reed attempt to moneterise what they have built," Robinson said.

"Reed is a destination brand, which the whole of the staffing sector uses even though they are competitors. James and the board have always known they were sitting on a goldmine.

"He is playing a shrewd game of poker right now."

The Guaranteed Response service promises recruiters at least five applications a week or receive the difference in CV downloads.

Individual Guaranteed Response jobs cost £50. A package of jobs costs from £30 per job.