Revenue Model — Yelp (Hyperlocal Classifieds)

Yelp is an online classifieds business, helping users find local businesses.

REVENUE MODELS

Local Advertising Sales — Banner ads & sponsored listings are sold to businesses which are reviewed on the website.

Brand Advertising — Brands can give banner and text ads on Yelp.

Other Services — Yelp has other services which generate revenue for it. Some of them are

Eat24 — Online ordering system for restaurants

Seatme — Online restaurant reservation system.

CONCERNS

Extensive Sales Force — To pitch to local businesses, a large sales force is required. Over 65% of the total employee strength of Yelp were sales people.