Business Model Canvas Of Linkedin – The LinkedIn business model is a multifaceted platform that connects professional users who want to create their own professional network with recruiters and advertisers. Because of its large community of professionals in every business and everywhere on the planet, LinkedIn is known as the “professional network”. Currently, LinkedIn has more than 660 million users in more than 200 countries.
The main goal of people joining LinkedIn is to build a professional identity and develop useful contacts for business with the aim of expanding their professional horizons. The biggest benefit is convenience: instead of physically traveling for HR searches, recruitment and selection, training or networking, one can go online and access LinkedIn.
Business Model Canvas Of Linkedin
LinkedIn is a multi-faceted platform that offers several solutions for different customers. It is based on a freemium business model (there are free plans, but the best resources are charged), but also on recruitment and advertising. So, let’s explore LinkedIn’s business model.
Business Model Innovation
LinkedIn calls itself “the world’s largest professional network,” and it’s built on its five pillars: “Transformation, Integrity, Collaboration, Humor, and Results” to make people’s jobs easier. On LinkedIn, every profile stands for some kind of summary: every person checking one’s profile has information about current and former jobs and positions, education, experience, skills and abilities, courses, training, aspirations, etc.
Additionally, the platform allows over 9 million businesses worldwide to market their existing jobs. And, like any other social network, one can connect with other LinkedIn users by sending them friend requests.
LinkedIn was officially launched in 2003 by investor Reed Hoffman (previously on the board of directors of Google, eBay and PayPal), Alan Blue, Constantin Gurike, Eric Lie and Jean-Luc Vaillant. Less than a year later, the network will already count over 1,200,000 members. But the bog-jump comes in 2005, with over 4 million members after the launch of jobs and subscription-based options.
Two years later, LinkedIn is truly considered a business by startups. The result: more than 17 million users at the beginning of 2007. The following year, the platform began to expand to other countries and reached the mark of over 33 million members.
Business Model Canvas Plus
In 2010, the company opened offices around the world, and the team counted more than 1,000 employees. And, the following year, LinkedIn was listed on the New York Stock Exchange. As LinkedIn celebrated its first decade, the platform lowered its entry age and added 225 million users worldwide.
The team grew to 5,400 employees distributed across offices in 27 cities to serve its users spread across over 200 countries. In December 2016, it was acquired by the giant Microsoft in a purchase of more than 26.2 billion dollars! LinkedIn currently has over 750 million active users.
As mentioned above, LinkedIn was acquired by Microsoft in December 2016. Along with the acquisition, company founder Reid Hoffman remains chairman and Jeff Weiner is still CEO since 2008.
According to LinkedIn’s user agreement, its “services are designed to promote economic opportunity for our members by allowing you and millions of other professionals to meet, exchange ideas, learn, and find opportunities or employees, work, and make decisions in a trusted network. . relations”.
Examples Of A Business Model Canvas
Some of the services provided by the network are charged to its users to realize all their potential. Its paid features include: premium accounts, talent solutions, marketing solutions and sales solutions.
The company’s revenue has shown steady growth over the past years. In fiscal 2019, LinkedIn’s annual revenue was nearly $6.8 billion, up from $5.26 billion in the previous fiscal year.
These solutions include resources offered to both recruiters/employers – seeking qualified candidates for their existing positions – and individuals looking to develop through courses and training. For those choosing professionals, LinkedIn offers a portfolio of solutions that allow employers to connect to a wide network of candidates by advertising their available jobs. Furthermore, there is an enrollment account, which ensures:
For individuals, LinkedIn offers a Learning platform, a premium subscription model that offers access to 15,000 video courses, with instructors in several areas of expertise. Talent Solutions accounts for more than 65% of the company’s revenue due to premium resources for both businesses and workers.
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This second service directs advertising campaigns to LinkedIn’s audience of users. Businesses can deliver content to targeted audiences, generate leads and, after all, measure their ROI (return on investment). Businesses can develop sponsored content and advertisements, even InMails, which are direct messages they can send to users they’re connected to.
These solutions are about creating a professional brand and engaging prospects through the network. The objective is to gain sales insights such as company and job changes or updates. And, through the Sales Navigator tool, prospects can be found using specific filters. According to LinkedIn, it is “a powerful way to find and reach other decision makers”.
Premium Career and Premium Professional accounts represent 17% of LinkedIn’s revenue. They are paid subscriptions that allow users to enhance their searches, connect with people outside of their personal network and access premium information (such as people who have viewed their profile, video courses, InMail messages, etc.) and many other special features. There are four different plan options and fees range from $30 to $100 per month. However, most users chose the basic account which is free.
LinkedIn is a multi-party platform. Thus, all three aspects can be considered as its customer segments: users who are part of the community based on their profile, employers / recruiters looking for candidates and advertisers who need a targeted and more qualified audience for their campaigns. .
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LinkedIn’s largest distribution channels are its website and mobile app. Additionally, some locations have physical offices.
Since it is a social network, the more people in the community, the more value the platform has for everyone. Therefore, the customer relationship is more important than the platform.
Development and updating of “one” online platform. But other key activities include retaining (preventing churn) and growing the number of users, protecting information and privacy, and building partnerships with businesses.
LinkedIn’s key partners are data centers (which provide the entire infrastructure that supports the online platform), employers, universities, learning course developers, and companies that use LinkedIn’s API to connect their marketing and sales applications to the platform (e.g., Zoom, Adobe, and Oracle). ).
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LinkedIn’s cost structure is entirely related to platform development, maintenance and growth. It includes salaries of employees, developers and consultants, branding and marketing costs, legal and administrative costs, investment in infrastructure and equipment and others.
LinkedIn’s business model is built entirely on job search and networking and connections. In addition, they have a huge market share against their competitors. With some innovation, LinkedIn can maintain its dominance in the market and contribute to the world in a more meaningful way, such as expanding ways to help users — who can’t pay for a subscription — find and get a job.
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It is a powerful business ideation, modeling and strategic planning tool to help you identify how your business is performing and making money. It can be used to manage your existing business. Startup founders can also use it to validate their business idea and reduce the risk of failure before launching their business.
Business Model Canvas For Software Company Or Tech Startup
A business model canvas (BMC) is a strategic management template used to organize and visualize the key elements that go into implementing a business model.
A business model canvas is a conceptual structure that supports the viability of the business and explains who the business serves, what it offers, how it delivers, and how it achieves its goals.
It is an important business development and strategy tool that helps validate your business idea before investing more time and effort.
Conceived by Professor Alex Osterwalder, the Business Model Canvas is a template used to represent the various aspects of running a business.
Blinkist Business Model Canvas
Originally published in a business modeling book, entrepreneurs and startups have used the Business Model Canvas to visualize a broad overview of their business.
The Business Model Canvas template has nine main sections (or sections), and each section helps answer the questions of what, how, and who your business operations are:
Right click on the image above and select ‘Save Image As’ to download this business model canvas template, or click here to get a printable PDF version here.
The right side of the business model canvas focuses on the customer and the left side on the business. Both sides add value
Business Model Canvas
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