What is LinkedIn's business model?

LinkedIn takes after a Freemium Business Model where you give a center item away for nothing to the clients and pitch the excellent items at a cost to a littler part of the client base. Another case of the model connected can be Skype, which gives free calling among PCs at individual level and gives business offices like meeting calling and calling telephones straightforwardly as an exceptional administration. The essential motivation behind why this model winds up noticeably effective is a direct result of computerized generation, and the continuous abatement in expenses of PC power,storage and data transfer capacity. The minor cost of generation and dissemination nearly ends up plainly zero when considered the economies of scale and this makes the situation to give away the center item for nothing. 

The free arrangements are accessible to all individuals at no cost and give convincing proficient advantages. The adapted arrangements offer improved functionalities intended to streamline each progression of corporate elements of employing, advertising and systems administration. Additionally, a noteworthy bit of the income originates from publicizing, aside from the center premium offerings.

A fascinating element in this freemium show is the nearness of a high system impact. This infers expansion of a free part builds the part base quantitatively, as well as results in esteem expansion for all other free and premium individuals from the site by developing the system through informal exchange or association ask for messages. It likewise makes a possibility to draw in new clients and redesign fulfilled free clients to premium subscribers.Since a substantial piece of income is contributed by promoting, and the peripheral cost of including new clients is low, the extra income created will bolster the additional expenses and the freemium demonstrate along these lines flourishes.

As of FY15, The Revenue breakdown for the various offerings is as follows:

Talent Solutions: $1877 mil (62.75% of the net revenue), a 41% increase over FY ’14 mainly due to the strong field sales, acquisition of Lynda.com and the consequent Learning & Development Services.
Marketing Solutions: $581 mil (19.42%), with Sponsored Updates being the primary growth driver.
Premium Subscriptions: $532 mil(17.83%), with Sales Navigator being the fastest growing component.
Source: LinkedIn Annual Report