Question

To assess your understanding for Virtual Organization Management.

Q. Which Business model is adopted in LinkedIn?

(Min. 250) words.
No Plagiarism (copying) please.

Answer 1

Solution:

LinkedIn is a professional networking platform where users connect with each other who have a professional interest with other members. The connection of professionals across various markets, the industry in fact the entire world is the main factor over which LinkedIn is operating. Thus, LinkedIn is a professional networking platform.

The business model of LinkedIn is a freemium model where the company provides the core features for free and it charges from the consumers for any additional premium services they wish to avail from LinkedIn. Hence, the core features such as having a professional profile, being able to send connections to other professionals, interact with the professionals among many other free features. The advanced features are available for sales, human resources professionals who can generate leads on the platform using a huge network of professionals. Hence, this is the business model that LinkedIn has employed.

Along with the freemium business model of LinkedIn, LinkedIn also has the advertising business model where the professionals, businesses can market or promote their services on the professional network of LinkedIn and hence earn significant amounts because of advertising by professionals and businesses.HEnce, LinkedIn primaraly depends on these two business models for their revenue streams. They also have other features through which they earn significant revenue but those are not the primary business models based on which LinkedIn bases its business.

Hence, this is the overall brief about the business model of LinkedIn.