Let’s look at how does Yelp make money in more detail: How Does Yelp Make Money? Depreciation (5%) – Finally, depreciation makes up 5% of its cost structure, which includes depreciation on:.General and Administrative (13%) – General and administration make up 13% which is mostly associated with:.Salaries for engineers and IT personnel.Product Development (23%) – Its product development makes up 23% of the net revenue which includes:.Sales and Marketing (51%) – Its sales and marketing make up about 51% of its net revenue which includes:.video production cost for advertising customers.Cost of Revenue (6%) – its cost of revenue makes up about 6% of its revenue which includes:.Communication – Yelp’s communication lines allow it to access more potential customers every day thereby expanding its base.Engaged Community – Yelp has been successful in establishing a flourishing community of users, content contributors and local business that interact with each other through reviews, images, ratings, etc.Dedicated Sales – Their sales force directly engages with local business for advertisement, marketing, and weekly email campaigns.Engagement – Yelp allows businesses to interact with their customers in a friendly and approachable manner with features like Request A Quote, a direct response to reviews, Yelp reservation, etc.
Brand Reputation – Yelp has made considerable efforts in managing their brand Image and building up the trust within the community to retain its customers.Transactions – yelp allows the user to place food orders directly without leaving the Yelp platform.Transparent – Yelp gears to be as transparent as possible, when it comes to its reviews, ratings, tips, and photos, ensuring that it is always easily accessible to its customers online.Self Service Platform – Yelp has provided a self-service platform i.e., website, mobile App, which makes it possible for its users to serve themselves anytime easily and effectively.Support the community and local businesses.The following are the value proposition for the content contributor: Content Contributors (active reviewers) – Yelp invests heavily in its engaging and fun content that makes it convenient for its users and businesses to interact with each other.browse local businesses in an engaging and informative manner.Users – Yelp users, on the other hand, are given the opportunity to:.Opportunity to engage with a large audience (Increase traffic).exposure and visibility to local businesses.local Businesses – When it comes to small and local businesses, Yelp is a trusted platform that provides:.
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