How Does Yelp Make Money?

Yelp is an online review platform that allows users to discover all kinds of venues ranging from bars to hairdressers.

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Content on Yelp is user-generated, meaning that members are the ones who post pictures as well as rate the service.

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Yelp, which is based in San Francisco, was founded in 2004 by former PayPal employees Jeremy Stoppelman and Russel Simmons.

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The founders managed to raise $56 million in funding before taking Yelp public in 2012.

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In some cities, “The Yelper” actually became a cultural phenomenon. The platform was even parodied during a South Park episode. Full Article

However, Yelp has also been criticized for manipulating and censoring reviews at the cost of business owners.

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In 2021, Yelp generated around $1 billion in revenue. But how does the firm actually make money?

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The majority of Yelp’s revenue (> 90 percent, in fact) stems from the advertising products that businesses purchase on its platform.

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TRANSACTIONS

Yelp generates commission revenue on transactions that it facilitates on behalf of other partners. UNSPLASH Full Article

Businesses can receive a verified license that provides them with a stamp of authentication for which they are charged a subscription fee.

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