Know how LinkedIn Works

Linkedin has positioned itself effectively as a professional network in this competitive industry, with a mission to help professionals connect globally. The site now has over 500 million members from over 200 countries and territories, with 80% of them believing that professional networking is critical to their professional success.

Linkedin’s revenue model is a freemium model, which means that the main capabilities are accessible. Still, the company charges money for additional tools that help recruiters and job seekers find jobs.

What Is LinkedIn and How Does It Work?

Reid Hoffman, a well-known American internet entrepreneur and venture financier launched LinkedIn to develop a professional networking community. In August 2004, the group surpassed one million members, and it has been rapidly expanding since then. The website’s mobile version was released in February 2008, and Microsoft purchased the company for $26.2 billion in February 2016.

Linkedin is still unknown to most of the world’s population, despite being one of the fastest-growing social networks. Professionals and corporations use this one-of-a-kind professional social networking platform with over 106 million monthly active members to establish their personal and business brands online and interact with millions of other professionals.

Linkedin revenue model allows you to contribute your opinions in blogs, and the professional community includes millions of positions offered by over 9 million firms.

Business Model on LinkedIn

LinkedIn connects you not just with other professionals but also with businesses and recruiters. The brand has carved out a niche for itself as the only professional networking platform worth using. It supports firms as well as professionals, and it even charges for certain premium services. Users can even pay to stand out on this platform, unlike other social networks like Facebook and Twitter.

What is LinkedIn’s Business Model?

While most social networking sites rely on advertising for most of their revenue, LinkedIn operates on a completely different business model. LinkedIn’s income model can be separated into two parts: Premium Subscriptions & Business Solutions.

Solutions for Business

LinkedIn serves as a one-stop-shop for expanding your professional network and discovering new chances. Every LinkedIn user has their own set of criteria. LinkedIn business solutions have services to meet most of these objectives, whether it’s finding new networking possibilities, possible employees, marketing new campaigns, searching for a sales lead, or learning business principles.

The premium services offered by the corporation to its subscribers are referred to as business solutions. It is made up of –

Solutions for Talent

The essential services and tools featured in the LinkedIn business model are talent solutions, which account for roughly 65 percent of total income. Premium recruiting tools for firms and recruiters are included in talent solutions to assist them in finding the best employees/partners for their business. LinkedIn recruiter, job slots, recruiting media, career sites, and work with us ads are the primary services provided by Talent Solutions.

One of the significant differences between LinkedIn and other job boards is that users don’t usually join LinkedIn to hunt for jobs; instead, they join LinkedIn to build and market their brand, which recruiters are looking for. Recruiters can better picture a person on LinkedIn than they do on Indeed or Monster Jobs. LinkedIn Talent Solutions appears to be a significant service that assists recruiters in poaching employees from competitors. It is one way on how does linkedin make money.

Solutions for Marketing

Marketers use LinkedIn to execute their marketing strategies since it is the most incredible recruitment platform and the most popular social networking website. This service accounts for about 18 percent of the company’s total revenue. It includes tools that allow businesses to build a company page and improve their marketing efforts by providing sponsored content, sponsored InMails, and text adverts.

Subscriptions at a Higher Price

Individuals on LinkedIn benefit from premium subscriptions, which are tailored to their specific needs. It enables users to have access to capabilities that aren’t available to regular users. The premium plans are tailored to the users’ unique requirements. Subscriptions include the following:

1. Career

2. Business Plus

3. Sales Navigator

4. Recruiter Lite

Career Solutions

You may increase your visibility, reach a bigger audience, and have access to applicant insight, which allows you to compare your profile to others by upgrading to a premium career account. You can see who is looking at your profile and have access to online video courses and salary information.

Solutions for Job Search

With a premium business membership, you get endless profile searches and suggested profiles – up to the third degree. You can use the InMail services, which allow you to contact anyone on LinkedIn, even if you aren’t linked with them yet. In the subscription version, there are more specific business and career possibilities and ways on how does linkedin make money.

Solutions for Sales

Premium sales solutions from Linkedin help you improve your social selling techniques by giving you access to tools like enhanced search with the lead builder, sales insights, InMail, lead suggestions, and saved prospects.

Recruiting Services

The premium solutions subscription for recruitment solutions is a simplified form of Talent solutions. You gain access to innovative ideas, automatic candidate monitoring, integrated hiring, and a recruiting-specific website design, as well as standard features like inMail messages, who saw your profile, and so on, with this membership.

Partnerships & Acquisitions

LinkedIn has also broadened its business strategy by acquiring several well-known companies, including:

Linkedin Learning

Lynda is one of LinkedIn’s most recent purchases. It was a subscription-based eLearning platform that allowed users to learn business, software, technology, and creative skills through videos.


LinkedIn bought Slideshare in 2013, intending to give its members a means to discover individuals through content. LinkedIn Slideshare is a slide-hosting service that allows users to post content in PowerPoint, PDF, Keynote, or OpenDocument format, either privately or publicly.

What Is Unique About LinkedIn’s Business Model?

LinkedIn may have a more significant opportunity than the rest of demonstrating long-term viability in the marketplace. Although Facebook and Twitter receive far more media attention than LinkedIn, the latter is unique because it serves a higher purpose. It has the potential to assist young people in advancing their professions and enabling them to live better lives. Therefore it appeals to them. By comparison, Facebook and Twitter can appear to be a little frivolous. LinkedIn’s business model has an advantage over other social networking platforms because it has more defined goals and a revenue source that isn’t only based on advertising. Furthermore, unlike Facebook, Twitter, or Snapchat, time spent on this social network is not deemed wasted by users, distinguishing it as a legitimate social networking tool.

The platform isn’t as well-known as others, but it has a bright future ahead of it. LinkedIn Business Model has been growing at a faster rate than ever since Microsoft acquired it.


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