Many readers are asking “how does LinkedIn make money online“, “Is LinkedIn make money real?” and “How does LinkedIn generate revenue”. In this blog post, we will answer all these questions in detail to help you find out.
LinkedIn has “the world’s largest professional network” with more than 645 million users and 19,000 employees worldwide. LinkedIn’s goal is “to bring together professionals to make them more productive and successful.” LinkedIn officially launched in 2003, with headquarters in Silicon Valley and offices in many countries around the world.
After people build their companies, they look for sources that helps them in their job. At LinkedIn, they can use LinkedIn for posting recruiting people to work and pay them income, find prospects, create corporations, look for candidates build relationships, sell products, etc.
Just like Facebook, Tumblr and others, LinkedIn is a perfect social media platform for businesses with the major features. Moreover, LinkedIn does make money too!
What is LinkedIn’s Mission?
This digital networking business model is a global professional network that offers a wide range of services and jobs to job seekers, professionals, advertisers and employers. People share content, articles, videos, streams and other types on the platform according to your marketing strategy. You can have a freemium or premium account
Most of LinkedIn’s revenue comes from its 3 core services: Talent Solutions, Marketing Solutions, and Paid Subscriptions.
Since the acquisition, LinkedIn’s financing has been combined with Microsoft’s financing. In 2018, this professional network contributed $5.3 billion in revenue, up $2.3 billion from 2017.
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How does LinkedIn make money?
LinkedIn’s quarterly employment overview (SEC) archive shows that the professional network makes money from its recruitment services and membership benefits by selling ads. That’s their answer for “how does LinkedIn generate revenue”. Now, let us explain how LinkedIn is more than a place to find a job..
Although LinkedIn Research Solutions does not contribute significantly to the total revenue, it is also very popular and trusted. This feature allows users to learn different skills and gain knowledge on many topics. The Research Solutions suite includes Lynda.com, a subsidiary acquired in 2015, and LinkedIn Learning.
2.1. talented solution
Before the 2016 acquisition, 65% of LinkedIn’s $960 million Q3 revenue came from recruitment services (called Talent Solutions) sold to professional recruiters. The Talent Solution consists of two parts: Hire, Learn and Grow (L&D). The Recruitment section helps employers attract, screen, and recruit talent, while Learning and Development offer learning content such as online courses for individual and corporate clients.
2.2. Marketing solutions
The marketing solution provides a platform for advertising agencies to target LinkedIn users. In 2016, it generated 18% of total revenue, or $109 million, by combining ad sales to online marketers and selling “sponsored updates” posts to the target audience. A company or business would use this platform to run advertisements that promote their brand. Advertising will help them reach their targeted audience faster.
2.3. Paid premium subscription
Paid premium subscriptions is another answer for how does LinkedIn earn money. Thus, the remaining 17% of revenue, or $162 million, is generated through Paid Subscriptions. Paid subscriptions allow members to increase the amount of information in search results, send messages on LinkedIn’s email system (instead of just receiving them), communicate with members outside the network, and view information about who viewed their profile.
Paid premium subscriptions include Sales Solutions that help salespeople identify quality leads and drive sales through social media. This solution is almost entirely free. As of March 2016, only 21% of the total users had a paid subscription.
As of the third quarter of 2016, 61% of LinkedIn’s revenue comes from the US, and the remaining 39% is from the international market.
Now, you know how does LinkedIn make money, but we will keep the answer of “How much money does LinkedIn make” vague because the number changes with the change of number of users, visits, sessions and more!
FAQ questions about How does LinkedIn make money
Is LinkedIn a profitable company?
As it stands till today, LinkedIn must be a profitable company.
How much does LinkedIn generate revenue?
LinkedIn’s yearly revenue is more than $10 billion. It rises with the increase of number of users and marketing solutions.
How much does LinkedIn make per user?
In general, LinkedIn makes $1.30 in revenue for every hour the users spend on the platform. This is huge with its big number of users.
What kind of business model is LinkedIn?
Although it has premium subscriptions, the business model of Linkedin is considered a freemium model because it offers most of its important features for free. They take money only for extended features to recruiters and jobseekers looking for faster results.
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