Business Model of LinkedIn – How Does LinkedIn Make Money?

This article is on Business Model of LinkedIn – How Does Linked Make Money? 

When there is a conversation about businesses that are able to deliver some of the best services to customers in the best way possible, we can assume that LinkedIn is one of the channels that comes to people’s minds. The Business Model of LinkedIn is based on four pillars of talent solutions, marketing solutions, learning and development solutions, and premium subscriptions.

To be honest, the platform is known to ensure that professionals from all over the world are able to connect in the best way possible. Without a doubt, this can be said that LinkedIn Company has definitely positioned itself as one of the best professional and business communities.

LinkedIn was founded in 2002 and is one of its kind of business and employment-oriented services that channel its functions through websites and mobile apps. The Business Model of LinkedIn focuses on technical networking services.

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There are about 500 million people on the LinkedIn platform, and the amazing platform is being adopted in about 200 countries.

LinkedIn is a Popular business and jobs-oriented digital service that runs on websites and smartphone devices. LinkedIn has started its services on 5 May 2003. LinkedIn is a professional network for employers and job seekers to build professional relationships. LinkedIn generates revenue from the sale of its members’ access to information to employers. LinkedIn was acquired by Microsoft in December 2016. LinkedIn has more than 690 million users in 150 countries.

LinkedIn enables participants (both employees and employers) to build profiles and “contacts” with each other in an online social network that can reflect real-world professional relationships. Members can invite others to join LinkedIn.

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The Business Model of LinkedIn has managed, with the aid of the experts out there, to deliver the best of the services to the users. In this post, we will understand the Business Model of LinkedIn and how it is possible to make some money.

Introducing the LinkedIn Platform in Business Model of LinkedIn

The LinkedIn platform is essentially a forum where people can do much of their professional work. The LinkedIn Business Model can be said to be a technical culture for sure.

LinkedIn Business Model’s main partners are colleges, businesses, influencers, content providers, marketing, and sales application partners. With the help of its partners, LinkedIn Business Model canalizes various activities such as platform development, marketing and sales, advertising, and administrative activities.

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LinkedIn is definitely a freemium business model. This means that the services will be given to the customer in a free manner.

Nevertheless, with each of the premium functionality, the company charges a fixed sum of money from consumers who wish to enjoy the premium benefits. So, there are some other great features that can be used and that people need to pay the price for sure. With the support of the services given to the people and the rates they pay for the services, the business can make money without any trouble.

The Business Model of LinkedIn would also be an aid to people who want to learn the right things.

The key activities channeled by LinkedIn Business Model include the creation of apps, the recruitment, and retention of employees, the protection of valuable user data and the establishment of a strong relationship with universities and companies.

Value Propositions Or Value Offerings Of The Linkedin Business Model

The effectiveness of the LinkedIn Business Model actually depends on its value proposals, some of which are as follows:

For Recruiters/Businesses

  • Resumes with References
  • Powerful Tool
  • Easy to Use
  • Running ads
  • Identifying the Right Talent
  • Creating Business Pages for productive branding

For Users

  • Using it for self-branding
  • Building new contacts
  • SlideShare
  • Free of charge

For third Part Developers

  • Supporting Customers
  • Providing Software Tools and Apps by using LinkedIn APIs

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.

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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.

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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.

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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.

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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.

Revenue Model – How Does LinkedIn Earn Money?

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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. 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


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.

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