LinkedIn Business Model: How Does LinkedIn Make Money

Sushree Sangeeta Behera Sushree Sangeeta Behera
Aug 26, 2021 6 min read
LinkedIn Business Model: How Does LinkedIn Make Money

While talking about platforms where one can build a professional relationship with clients and employees, then LinkedIn tops the list. Founded by Reid Hoffman, this platform has been increasing its user base since its birth. It has also successfully placed itself among the list of fastest-growing social media networking platforms.

However, even today, many people aren't aware of this platform. LinkedIn is a professional platform where clients and employees can build professional relationships with each other. With about more than 660 million users and 9 million companies, LinkedIn is still expanding its community of professionals. Before moving ahead, let's have a look at some company highlights about LinkedIn.

LinkedIn - Company Highlights

Company Name LinkedIn
Founding Year 2003
Headquarters Sunnyvale, California, United States
Industry Professional Networking, Social Media
CEO Ryan Roslansky
Founder Reid Hoffman
Parent Company Microsoft Corporation

How does LinkedIn make money? Did this question pop up in your mind? Well, we have discussed the company highlights of LinkedIn. Now, we shall be unveiling the revenue sources of LinkedIn. But, before that, let's discuss the services offered and provided by LinkedIn? So, what are you waiting for? Just keep scrolling and knowing.

LinkedIn Services
LinkedIn Business Model
LinkedIn Acquisitions & Partnerships
Conclusion
FAQs

LinkedIn Business Model Explained

LinkedIn Services

LinkedIn is a free platform for everyone. However, there are some premium services which the company offers and provides its user base. The key services include:

  • Talent Solutions
  • Marketing Solutions

Talent Solutions

Talent solutions refer to all those services which are offered to companies, including recruiters. This is a premium feature that helps them to hire the most suitable and appropriate candidate who would meet all their requirements. Apart from this, it even offers businesspeople the perfect partner for expanding their business. The key services offered by LinkedIn under Talent Solutions includes:

  • LinkedIn Recruiter
  • Recruitment Media
  • Work With Us Ads
  • Job Slots
  • Career Pages

Apart from these advantages which LinkedIn provides to its users registered as recruiters, it's also a boon for employees. It helps them enhance and hone their skills with millions of courses that are available in premium versions.

Now, you might be wondering why LinkedIn? While there are other job portals, why is LinkedIn so popular? Then, let me tell you this. On other job portals, the users need to look for jobs themselves. However, on LinkedIn, users need to exhibit their skills and talents which will make them their brand and attract recruiters. Well, this is one of the key services offered by LinkedIn.


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Marketing Solutions

LinkedIn Marketing Solutions
LinkedIn Marketing Solutions

Along with talent solutions, LinkedIn also provides marketing solutions. Do you want to know how it does so? Then, let's dive deeper. Besides being a professional platform, LinkedIn also lets companies launch and execute their perfect marketing strategies in their campaigns. The company can have its page on LinkedIn. In addition to this, the company can also improve their efforts in marketing by using tools for the creation of:

  • Sponsored Content
  • Sponsored Email
  • Text Ads

Both these services provided by LinkedIn also contribute to its methods of generation of revenue.

LinkedIn Business Model

We know that Facebook and other social networking sites make their money by advertising. However, LinkedIn has an entirely different model for the generation of its revenue. The business model of LinkedIn may be classified into the following types:

Let's discuss these terms in detail.

Business solutions

LinkedIn Business Page
LinkedIn Business Page

LinkedIn is the most popular professional platform where everyone can join. Every user joins LinkedIn for various purposes. Some users join to find suitable jobs. On the other hand, some others join for generating leads or learning key concepts of business. LinkedIn has solutions for satisfying every user's needs. The two basic business solutions provided by LinkedIn include talent solutions and marketing solutions.

Talent solutions contribute about 65% to the business model of LinkedIn. In addition to this, marketing solutions are about 18% of the business model of LinkedIn. This is how LinkedIn provides a vast arena for recruiters and employees. Both of these communities are benefited from this learn and earn platform. This is how LinkedIn makes money by providing business solutions.

Premium Subscriptions

Not all users join LinkedIn for the same purpose. This is why LinkedIn offers certain features and plans for its premium users. These premium features and plans are specially designed according to the demands of the user. The basic premium subscriptions available includes:

  • Career
  • Business Plus
  • Sales Navigator
  • Recruiter Lite

Let's know more about each of these subscriptions.

Career Solutions

The features offered to the users by the Career Solutions subscription of LinkedIn include:


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Business Plus

The features offered to the users by the Business Plus subscription of LinkedIn include:

  • Search for and look at an unlimited number of profiles.
  • Gain access to the InMail feature of LinkedIn by which one can connect and contact any LinkedIn user.

Sales Navigator

In this Sales Navigator subscription, premium users enjoy the privilege to boost up their strategies of social selling. There are various tools such as InMail, enhanced search, saved leads, sale insights, and lead recommendations. All these tools are very beneficial for marketers and businesspersons.

Recruiter Lite

This feature can be called the simpler version of the Talent Solutions Feature. Apart from the basic features, the other features offered to the users by this subscription includes:

  • Automatic tracking of candidates.
  • Smart and enhanced suggestions.
  • Designing websites specific to those of ideal recruiters.
  • Integrated hiring of employees.

These premium subscriptions of LinkedIn help LinkedIn to generate revenue.

LinkedIn Acquisitions & Partnerships

LinkedIn Learning logo
LinkedIn Learning logo

LinkedIn has acquired and has extended partnerships with other brand platforms which contribute to its business model. The platforms and companies acquired and partnered by LinkedIn include:

LinkedIn Learning is an acquisition of LinkedIn which was previously known as Lynda. However, the operating model of the platform remains the same where it continues to be an e-learning platform. The users can have a revenue model after buying a subscription. They can even learn various professional skills via videos.

LinkedIn Acquisition of SlideShare | LinkedIn SlideShare
LinkedIn Acquisition of SlideShare | LinkedIn SlideShare

SlideShare is a slide hosting platform acquired by LinkedIn in 2013. This platform allows users to upload and post their PowerPoint, OpenDocument, keynote, and PDF both in public and private mode.

All these acquisitions and partnerships have even helped LinkedIn generate its revenue.

Conclusion

The business model of LinkedIn is quite different and unique from other networking platforms. It's a very beneficial platform where even surfing and scrolling helps you in your growth and development. This is how it stands away from Facebook, Snapchat, Twitter, Instagram.

The platform hasn't gained enough popularity. However, with its amazing features both at free and premium platforms the company is growing. Over the years, it has gained the trust of its users and has been the first preference both for recruiters and employers.

FAQs

What is LinkedIn How does it work?

LinkedIn is an online platform to connect with professionals and grow your professional network worldwide.

Does LinkedIn cost money?

LinkedIn provides free Social networking service. There are additional features provided by LinkedIn which are paid services.

How does LinkedIn make its money?

LinkedIn's makes money through its talent solutions, marketing solutions, and premium subscriptions.

Is LinkedIn for business free?

Anyone with a company name and company email address can create a LinkedIn Company Page within minutes. The best part is that it's free and easy

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