LinkedIn Business Model

LinkedIn Business Model

LinkedIn had a revenue of $1.5b in 2013 and $2.2b in 2014.

At that time, LinkedIn had 3 revenue streams:

• Premium subscriptions, accounting for about 20% of their revenue
• Marketing solutions (i.e., advertising), accounting for about 25% of their revenue
• Talent solutions (i.e., recruiting tools for HR), accounting for the remaining 55% of their revenue

The Mobile App

LinkedIn has invested deeply in a mobile app. This app called Project Voyager was developed mobile first and is faster, simpler, and more personalized.

It’s structured around five key pillars—the Feed, Profile, My Network, Messaging, and Search—and launched in 2016.

Shift of the Business Model

Since 2016, Microsoft acquired LinkedIn for $26.2 billion, and the platform has undergone several significant business model changes.

• Integration with Microsoft products like Office 365, Outlook, and Teams
• Expansion of LinkedIn Learning (transition from Lynda.com (acquired in 2015) to LinkedIn Learning)
• Growth of LinkedIn Talent Solutions
• Monetization Through Advertising (sponsored content, video ads, and message ads)
• LinkedIn Premium & Subscriptions Growth
• Rise of LinkedIn as a Content & Engagement Platform
• Focus on Remote Work & Hybrid Workforce
• LinkedIn Product Innovations (LinkedIn Marketplace (launched in 2021) enables freelancers to connect with clients)

Thanks to LinkedIn's change in business model, its value has increased through recruiting, marketing, training, and business networking.