How Does LinkedIn Make Money?

Last updated: January 15, 2017 - 5:48pm EST

You may already know that creating and using a account is pretty much free to do. However, LinkedIn offers a Premium service, where users pay to gain additional features, but does this pay all the bills for LinkedIn? You may be wondering how LinkedIn makes money from a free service? We'll explain below.

How LinkedIn makes money

LinkedIn makes the bulk of its money in two principal ways. One is advertising, with companies able to pay more to have "sponsored ads" show up more often on user's feeds. The other is by selling subscriptions to professional business and development tools, which are collectively known as LinkedIn Premium.

Two of the most popular and profitable LinkedIn Premium packages collect and sell user information to businesses looking to recruit new employees, or sales professionals looking to find new clients for their products. These are known respectively as "Recruiter Lite" and "Sales Navigator."

LinkedIn has also made money from investors helping to get the company off the ground, as well as investors who have bought shares in the company on the stock market.


That's a quick note about how LinkedIn makes money! If you’re already signed up for LinkedIn Premium and you think you can get by with the free service, consider reading our article on how to cancel LinkedIn Premium, so you don't miss a step and can get back to a free account as soon as possible.

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