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How does yelp make money?

How much money does Yelp make?

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    From what I had heard at the end of the past year, the 2010 estimated revenue was at $57 millions, and the followings are some projections for the next years: $81M by 2011, $105M by 2012, $129M by 2013, $153M by 2014, $177M by 2015. The followings are the different revenue streams: - Sponsored Search: local businesses pay Yelp for traffic to their website maybe with a CPC model. Sponsored search allowed businesses to move their links to first Search Engine Results page (SERP). - Advertisements: monthly subscribing packages from $300 to $1,000 primarily to customers with a business account. This feature allows businesses to place banner advertisements on any search related to their category including competitor‘s Yelp pages. Also Yelps sold advertising as parternship and some banners to companies such as Monster and Zipcar. - Apparel Store: a Yelp apparel store was launched, to let customers shop for apparels online. This stream counts for less than 5% total annual revenue. - Offers/Deals: on August 2010 Yelp ran its first daily deal, similar to companies like Groupon and Living Social. I'm not sure how is the % split between the different revenue streams but I believe that the majority for the past year came from Advertisements and Sponsored Search, and I'm pretty confident that the main revenue stream for Yelp for the next years could be the Offer/Deals one. To support my opinion that this will likely be soon their main revenue stream please read the following interesting article: http://www.businessinsider.com/yelps-first-daily-deal-beats-groupon-2010-9

Nino Palermo at Quora Visit the source

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Yelp, Inc currently generates approx. so far in 2011 average of $16 million per quarter in revenues, Yelp did $30M in revenue for all of 2010), but the company does not turn a profit due to high cost of relatively small local ad sales, which is a cumbersome busness model (Groupon similar makes lots of revenues...some 40x Yelps' actually, at $2 billion a year, yet still loses over $100 a month in losses due to again high local sales staff costs). For detailed private company financial data on these companies (including VC funders, ownes, and esp in Groupon's case a huge numnber of acquisitions in local copycats in U.S. cities and outside U.S.), see the private co. financial data site PrivCo's Private Company Financial Reportson Yelp and Groupon: http://www.privco.com/private-company/yelp-inc http://www.privco.com/private-company/groupon-inc

Sam Hamadeh

2004: Unknown 2005: Unknown 2006: Unknown 2007: <$10M. In Feb 2008 Valued at $200M = ~20x rev multiple from 2007 rev 2008: Unknown 2009: $30M. 2010  $57M. Estimated valuation of  $510M-$530M = a revenue multiple of ~9x 2011: $64m (Estimated. ~$16M/quarter). IPO target: $1B-$2B = ~15-30 rev multiple 2012:

Carlos Tobin

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