When there is a discussion about the companies that are able to provide some of the best services to the people in the best way, we can say that LinkedIn is one of the platforms that come to mind of the people. The business model of LinkedIn is based on four pillars of talent solutions, marketing solutions, learning & development solutions, premium subscriptions.
To be honest, the platform is known to make sure that professionals from all over the world are able to connect in the best way. This can be said without a doubt that the LinkedIn Company has definitely positioned itself as one of the best professional and business communities.
Founded in the year 2002, LinkedIn is one of its kinds of business and employment-oriented services that channelizes its functions via a website and mobile apps. The business model of LinkedIn revolves around professional networking services.
There are about 500 million people who are present in the platform of LinkedIn and the amazing platform is adopted in about 200 countries.
With the help of the professionals out there, the business model of LinkedIn has managed to provide the best of the services to the people. In this article, we are going to understand the business model of LinkedIn and how it is able to make some money in the best way.
Introducing the Platform of LinkedIn
The LinkedIn platform is basically a platform where people can get most of their professional work done. The business model of LinkedIn can be said to be the professional community for sure.
Key partners of the LinkedIn business model are universities, companies, influencers, content providers, marketing and sales application partners. With the help of its partners, the LinkedIn business model channelizes different activities such as platform development, marketing and sales, advertising, and administrative activities.
LinkedIn is a freemium business model for sure. This means that the services will be provided to the person in a free manner.
However, for some of the premium features, the company charges a fixed amount of money from the users who want to get those premium benefits. So, there are some other amazing features which can be used and for that the people need to pay the prices for sure. With the help of the services provided to the people and the prices that they pay for the services, the company is able to make money without any hassle for sure.
Hence, the business model of LinkedIn is going to be a help for the people who want to know the best things.
Main activities that are channelized by LinkedIn Business Model include platform development, hiring and retaining employees, protecting important data of users and establishing a proper partnership with the universities and enterprises.
The Value propositions of LinkedIn Business Model Include
The success of the LinkedIn business model actually depends upon its value propositions and some of those are-
For Recruiters/Businesses
- Powerful Tool
- Easy to Use
- Resumes with References
- Identifying the Right Talent
- Running ads
- Creating Business Pages for productive branding
For Users
- Building new contacts
- Using it for self-branding
- Free of charge
- SlideShare
For third Part Developers
- Providing Software Tools and Apps by using LinkedIn APIs
- Supporting Customers
The platform of LinkedIn is basically just like Facebook; the only difference being is that it is going to be helpful to the professionals in the best way.
The people who are the users of LinkedIn are the ones who will be able to send some requests to the people as well as the companies too.
There will be some business profiles which are made by the people and these are the ones that will be able to have some access to other business profiles in the best way.
But before learning all about the business model of LinkedIn, it is important to know about the company. To be honest, the LinkedIn Company is something that was founded to provide some professionals with the chance to make their business shine in the best way.
Hence, this can be said without a doubt that the company is able to provide all the important services to the people for sure. The main motive of the company is to provide a proper community to the people who want the professionals to connect without any trouble for sure.
There are about 630 million users that are provided on the platform of LinkedIn. The number of users is constantly increasing for LinkedIn because of its effectiveness in adeptly channelizing B2B activities to help professionals, businesses and advertisers.
Key Aspects of the LinkedIn Business Model
When it comes to understanding the business model of LinkedIn, there are some important things that people need to know about it. This will be able to provide an idea of the fact that the company is able to make the money instead of being a platform that is free.
With the help of LinkedIn, users will not only be able to connect in the best way with the professionals but will also be able to make sure that they are able to get some proper connections with the recruiters and the companies as well.
The company of LinkedIn has managed to position itself on the top with the help of the awesome services which are provided to the people. Professional networking is one of the most common reasons why people from all over the world want to use the platform of LinkedIn in the best way.
So, it can be said that the business model of LinkedIn is something that will be considered as pretty reliable and dependable as well.
Professional networking of the LinkedIn Business Model enables employers to post jobs while job seekers can post their CVS. They both can easily connect over the platform and let me tell you here that connections at LinkedIn turn out quite productive in the time of need.
From December 2016, LinkedIn is an absolutely Microsoft owned subsidiary.
Here we are going to talk about the different methods with which the company of LinkedIn is able to make the money without any troubles.
How Exactly Is LinkedIn Able To Make Money?
The services that are provided by the business model of LinkedIn are clearly free but there are some companies and people who are willing to put their money into the amazing creation of services that go far and beyond the normal help that the platform is able to provide the people.
The immense accumulation of user database makes LinkedIn highly powerful in widening the reach of different types of businesses that are using this platform for optimizing their reach in their target audiences. So, like other basic social media networking site, LinkedIn also makes the money with the help of some amazing advertising facilities on the platform.
There are so many ads that are created on the platform of LinkedIn and with the help of these amazing advertisement options, the people are able to provide some of the business opportunities to those who are in the need for it.
In much simpler fashion, revenue streams of the business model of LinkedIn can be understood in three different categories and they are-
1) Talent Solutions
Hiring Talent Solution of LinkedIn enables businesses in finding the right candidates. These solutions include job posting, referrals, career pages, recruitment media, etc.
For these benefits, businesses pay a fixed amount to LinkedIn. Lynda.com is another Talent Solution of LinkedIn that lets users learn about different things important for their careers. This is a subscription model and hence, it enables LinkedIn to earn good money.
2) Marketing Solutions
As discussed above, LinkedIn lets businesses and advertisers run ads on the platform to generate leads and boost conversions. LinkedIn lets its users run sponsored content, sponsored InMails, Text Ads, Ads API, etc for the exchange of some money.
3) Premium Subscriptions
Premium users of LinkedIn enjoy some special features and for those facilities, they need to pay some money to LinkedIn. With the help of the services right here, the people will be able to make sure that most companies see them.
Hence they need to provide a certain fee to the company of LinkedIn and that is exactly how the business model of LinkedIn is able to generate the revenue and make some money as well. Some of the key features that LinkedIn users get in its premium version are-
- Who have Viewed Your Profile
- Direct messaging to Recruiter
- How You Rank
- Online video courses
- InMail messages
- Sales Navigator that enables sales professionals in finding and qualifying prospects
- Profinder – hire freelancer service
- Salary insight
Conclusion
Also, the platform is really famous for providing some of the best talent solutions, business solutions, career solutions in the business model of LinkedIn.
Hence, the company is able to make some profits with the help of these services because people are more than willing to pay for these amazing services.
What are your thoughts about a professional business model like LinkedIn? Have you used it and do you find it productive in offering the betterment in the lives of professionals? Share your views with us in the comments below.
If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies.
