LinkedIn · professional social network
Judge tests on 5-year modeled revenue, not just first-year bookings
No numbers; they turn down revenue that would hurt the funnel long term
Unknownexperimentationanalytics-attribution
What they did
North star is long-term revenue. Every ramp/initiative is measured on one-year bookings, then one-year revenue is modeled; for experiments whose effect changes over time (e.g. pricing) revenue is modeled on a five-year horizon and the decision is made on the five-year view. Supporting metrics: members acquired, trial-to-paid and paid retention, and 'Premium sessions' (sessions where a Premium member uses a Premium feature). Revenue that would squeeze the funnel is deliberately foregone.
- Stage
- scale
In their words
Sub Club by RevenueCat · Value-Driven Growth: LinkedIn's Billion-Dollar Subscription Strategy — Ora Levit, LinkedIn“We measure all ramps that we do, all initiatives by analyze bookings, which is one year booking and then we model our one-year revenue”
“make decision based on the five-year view and not the one-year view”
“We look at what we call a Premium session, which is a session in which a Premium member interacts with a Premium feature”
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