How does LinkedIn make money?

Being as free social and professional networking, how does LinkedIn make money? It’s a surprising question for every LinkedIn member and business professionals because members create their CVs with previous and current job roles, skills, education to look for more opportunities for carrier growth.

On the other hand, business professionals also building expanding networks, meet new clients, list vacancies, boost sales and establish brands. It means, from business to social networking, LinkedIn delivers high-quality leads everywhere.

So, what’s their business model? Of course, to keep everything running, they need money. However, they might follow monetization strategies that also fulfill their goals, like connecting the world’s professionals together. Thus, it’s time to know how do LinkedIn makes money through services.

Customers of LinkedIn

Before going to that, let’s know who the customers of LinkedIn are? It has four segments:

  • Professional users- Create their profile for the job.
  • Recruiters- Looking for potential talented job seekers.
  • Advertisers and marketers- To promote their product or business service
  • Third-party developers- who can develop software tools by using LinkedIn APIs.

These all types of customers make the use of LinkedIn search and explore more with the people to connect.

How LinkedIn makes money?

Generally, LinkedIn has three different sources to generate revenue.

  1. Talent solutions
  2. Marketing solutions
  3. Premium subscriptions

Let’s see how does it work in more detail.

1.  Talent Solutions

Talent solutions are the main income stream of LinkedIn, and it’s divided into two parts:

  • Hiring
  • Learning and development


LinkedIn also worked as a premium recruiting tool where a number of recruiters and corporations pay to find their potential business partners. They also pay to enhance their brands and search targeted employees. Some of their hiring works are job postings, referrals, career pages, and recruitment media.

It works as the employee poacher. It drives an authentic competitor environment—also a recruitment process managed by this job portal to get the best result out of this completion.

Learning and Development:

In 2016 LinkedIn bought Lynda is an eLearning platform, and it sells all types of courses a person needs to build up skills. So, by utilizing the subscriptions, LinkedIn makes money and enables the user to learn everything they need. In addition, it provides every video tutorial from creative skills, technology, software, or even business strategy.

 2. Marketing Solutions

At present, LinkedIn is the most sought-after site for talented marketers. They have significantly grown the incoming area as they can seek and expand their advertising ads and marketing campaign.  They also provide various company features and create their own respective pages and clients through marketing prospects.

Overall they embraced LinkedIn marketing solutions for targeting phenomenal end users. As an example, they provide Ads API, sponsored In Mails, Text Ads, etc., and meet their clients comfortably with so much struggle.

Premium Subscriptions:

It is the smallest segment, and nearly 20% earned from this subscription. It is mostly created for LinkedIn users and allows them to use certain features. Instead of the “Free” version, it’s definitely good to show great results.

Some features you can see under premium subscriptions are:

  • Who’s viewed the profile?
  • What’s the rank?
  • Direct messages to Recruiter
  • Salary insight
  • InMail messages
  • Online video courses
  • Profinder
  • Sales Navigator etc.

You can also check the monthly charge of premium subscriptions:

  • Career – $ 29.99
  • Business – $ 47.99
  • Sales – $ 64.99
  • Recruiter Lite – $ 99.95

How LinkedIn make money from Freelancing business?

Nowadays, Freelancing is the hot cake. A freelancer trades time for money from a different freelancing marketplace like Fiverr, Upwork, Freelancer. Freelance marketers also use LinkedIn to post their job on an hourly basis or project-wise to find the targeted candidate. Same way, freelancers also take this opportunity to make money for free. In this way, LinkedIn gives a wider opportunity to connect with people.

Is LinkedIn profitable?

The key activities of LinkedIn are platform development, hire and retain employees. It also develops a strategic partnership between enterprises and entrepreneurs. Therefore continuously, it revolved and added new features for the users and subscribers.

In the last 10 years, the search term “LinkedIn” has increased more than 60%. Now LinkedIn has almost 740 million active members and 55 million legally registered companies currently working. According to LinkedIn statistics and facts, surprisingly, it’s increasing years after years.

Especially in terms of lead generation, LinkedIn works as a good resource. Hubspot mentioned that it deals with 277% more effective lead generation work than Twitter and Facebook. Furthermore, for 80% of marketers, LinkedIn is a very good resource for lead. And more surprisingly, 43% of marketers still choose at least one customer from LinkedIn for lead generation work.

The number has also increased for B2B marketers. According to their report, nearly 80% of social media leads come from LinkedIn. Among them, about 40% of customers prove to be the most effective channel only for generating high-quality leads. 

How does company make money from LinkedIn?

The purpose of LinkedIn is to expand the professional networking area by providing hob advancement and more challenging work. It is for the user, but if you are a company owner, you also have many benefits to be active on LinkedIn.

The main advantages are you can establish, expand, and of course, promote your brand to increase your income. So, for the business, the more you put on yourself, the more you will get the opportunity to come the way. In addition, by sharing smart content and engaging in the discussion, you can portray your professional brand to potential clients, customers and employees.

In order to do that, LinkedIn has several features to reach your goal and make money through LinkedIn.

  • Join and create linking groups
  • Sign up for LinkedIn Profinder.
  • Revamp the profile
  • Use product sell to sell different products.
  • Use a professional headshot.
  • Upload video directly.
  • LinkedIn advertising.
  • Encourage affiliate market and products.

How does LinkedIn make money risk?

We are always fascinated by the evolved face of specialized networking of LinkedIn but never think about the business risk it has. Yet it’s very little and depends on how you consider these platforms chances are always there to become unsuccessful.

Some of these risks are:

  • LinkedIn maintains less privacy by owning all personal data and information.
  • Sometimes LinkedIn Support response slowly. Therefore building a professional network often becomes time-consuming.
  • Advanced LinkedIn features or premium accounts are costly.


I believe this post about how LinkedIn makes money would be truly helpful if you are interested in investing time and energy to get the hang of it. We know the benefits of LinkedIn outweigh its disadvantages. so, make sure to drive with caution and responsibility in this platform

Read Previous

How does LinkedIn Work?

Read Next

How does social media affect our lives?

Most Popular