How Yelp Makes Money

Yelp revenue through the first nine months of 2011

Photo: Business Insider

How does Yelp make money?It doesn’t! At least, not yet.

The company lost $7.6 million through the first nine months of the year on revenues of $59 million.

But, should it one day become profitable, it will be thanks to advertising.

Specifically, local advertising, which at $40 million is 70% of its revenue through the first nine months of this year. Brand advertising at $13 million is 22% of revenue. And “other services,” like Yelp Deals, remnant ads, and revenue from reservations is 9%, or $5.4 million.

For more on Yelp, check out our break down of the company’s public filing here →

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at

Tagged In

ipos sai-us yelp