Business Model Canvas Examples Understanding Business Models

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2015/7/16

Business Model Canvas Examples | Understanding Business Models

ALL POSTS TAGGED BUSINESS MODEL CANVAS EXAMPLES

Understanding LinkedIn Business Model
In the post titled, ‘Understanding Business Model Fundamentals’, we learnt why do we need to understand business models and how to visually represent a business model using the
‘Business Model Canvas’. In this post, we will try to understand LinkedIn business model using the Canvas.
LinkedIn is the world’s largest professional network. As of 31st March 2012, LinkedIn had 161 million members in over 200 countries. LinkedIn helps the professionals stay connected with each other by creating and managing a professional identity and building a professional network. LinkedIn has implemented a Multi­sided Platform, which offers different solutions to different categories of users.
LinkedIn provides the following categories of solutions to its network members for free: An ability to manage professional identity using tools such as Profile and Profile Stats; An ability to build and manage professional networks using tools such as LinkedIn Connections,
Invitations, and Introductions; Access to knowledge and insights using tools such as LinkedIn
Groups, Network Updates, News, Answers etc.
LinkedIn is a good example of a Freemium business model. While the core offering is free for its network members, premium offering comes for a price. The premium offering includes tools such as LinkedIn InMails and Profile Stats Pro. The users can upgrade from a basic account type to Business, Business Plus, or Executive account types. The premium account types provide access to the premium offerings.
LinkedIn platform induces the same­side network effects among its members. This helps in growing the network through word­of­mouth or connection­request­emails. As the average number of member connections grows, the strength of the network improves. The more the network becomes strong, the more attractive it becomes to the users on the

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