LinkedIn · professional social network
Keep the core free; charge for extras like rotating cover photos and a website link
No numbers; guest says the free base feeds paid growth
What they did
- Stage
- scale
In their words
Value-Driven Growth: LinkedIn's Billion-Dollar Subscription Strategy — Ora Levit, LinkedIn
David Barnard… the product itself and where you put paywalls or how you highlight that value within the product itself? Because it feels like that's such an important part that a lot of people miss as well. If you have a huge freemium base, part of converting that freemium base over time, it's not annoying them, but then it's also giving them opportunities to see that extra value, to experience that extra value. How does that play out in the product itself?
Ora LevitFirst and foremost, LinkedIn's mission is to provide an economic opportunity for every member of the global workforce and that opportunity is not paid. We prioritize our free experiences first. That means that anyone who comes to LinkedIn can build a profile, can create content that will be equally distributed in feed. They can apply to jobs. They can glean any information that is relevant for that, et cetera. And so that is really important for us because that's our mission. LinkedIn also has other businesses that provide jobs on the platform, et cetera, that also need to ensure that we have a healthy member base that engages in our platform.
Ora Levit… who you are and sells that book. You have an opportunity where you can add a link that says, "Visit my website," or, "View my newsletter," et cetera, to your profile that will also appear. Anytime you post something in feed, it will be just below your name. Every time you'll message someone, it will be there every time. If someone searches for you, they'll see it. So it's everywhere and it's a great opportunity for you to promote your business.
Ora LevitThat's something that is needed for free value, but it helps you derive business outcomes and it's something that we see our members want to gain leads from the platform and provide an opportunity for them to build their businesses. And so that's an example of a feature that we would make paid. Within the experience, we often make features freemium, so we give a taste of a free feature and then you can have an enhanced functionality that's paid. For example, on profile, you have a cover photo. Adding cover photo is free, but if you want to add rotating cover photos, for example to present your work, portfolio, recommendations, other things, adding multiple rotating cover photos would be a paid functionality. So we try to make sure we have that freemium experiences wherever we can.
David Barnard… of users because then you also sell to businesses who are looking to hire. How does that even play into all? I imagine that's a pretty complex balancing act of, like you said, keeping that freemium experience as strong as possible without alienating that larger user base, but then also providing enough for both the employer and the potential employee, but then also ... I use it all the time just because it's gotten really good for content.
Ora LevitThat's exactly right. Threading the needle is definitely something we think about all the time, but for us, it's really important to make sure that that free ecosystem thrives on the platform to fulfill in our mission, and like you said, we care about our customers. Recruiters, hiring companies, paying customers come to the platform to ensure that they post jobs that job seekers can find and we want to make sure that that value prop continues and is strong. And so we wouldn't add anything that would ever make something that's related to finding a job or applying to a job, "I pay function. I do want members to be able to find, apply to jobs, et cetera."
Ora LevitWe would add features that might help job seekers stand out and would be beneficial for their recruiters as well. For example, one of the premium functionalities we have is the ability to mark a job or up to three jobs a month as your top choice, but you do by doing that as saying, "This job is the job I want the most and here's two sentence, elevator pitch, on why I'm the best candidate for that." On the recruiter side, we show you essentially, …
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More from this episode
- Keep adding paid features, with a team as big as the growth team20+ new benefits in two years; guest credits it for acquisition and retention growth
- Let paying job seekers mark up to 3 jobs a month as their top choiceTop-choice applicants 46% more likely to hear back from the recruiter
- Judge tests on 5-year modeled revenue, not just first-year bookingsNo numbers; they turn down revenue that would hurt the funnel long term
- Run 1,000+ A/B tests a year, each product manager owning one areaGuest says testing beats internal debate; no specific numbers
- Ask people why they want Premium, then show plans and content that fitGuest says more tailoring always added value; no downside found
- Tell subscribers what their benefits are and how to use themMessaging changes alone improved retention; no numbers given
- Offer a two-person plan at 20% off, plus a big annual-plan discountBoth offers retain better; no retention figures given
- Show past subscribers their own messages and, sometimes, win-back offersReturning ex-subscribers grew into a large share of subscribers
- Offer a new free trial to past subscribers after 12 monthsStill in testing; no results shared
- Give subscribers free months of partner apps like Notion, Spotify and HeadspacePerk users tend to stay longer; no numbers given
- Use AI to draft profile summaries, but sell the help, not the AI
Tags: freemium, feature-gating, free-tier, two-sided-marketplace