WHAT IS YELP?

Like many other apps, Yelp is a product of necessity. In 2004 Jeremy Stoppelman, CEO of Yelp, tried unsuccessfully to find a dentist in San Francisco. Stoppleman discussed with Russell Simmons (co-founder) about creating an online community where locals could share local business recommendations. Stoppelman and Simmons, who were then working for PayPal, founded Yelp, a site that quickly switched from a review portal to a social network in 2007. Yelp is a social geolocation network that could be compared to Foursquare, although in reality they are very different. In any case, it is very interesting for the development of business and that is why we will introduce what it consists of and how to get the most out of your business. We, future work technologies explain yelp business revenue model. How they generate money.

Yelp Business Revenue Model

According to the Yelp website, “it was founded in 2004 to help people find good local businesses, such as dentists, hairdressers or workshops.” In the fourth quarter is estimated to have a monthly average of 120 million unique visitors and there are more than 53 million comments on local businesses.
The first difference with Foursquare is that in this case the business model of Yelp is clear, based on selling advertising to local businesses through ads that are labeled around the website.
On the other hand, this business model implies a clearer and more direct proposal of services:
• There are professionals who are in charge of dynamizing the communities at local level, mainly in the cities.
• Business owners can claim them as their own and have access to a number of advantages.
• People who write reviews and reviews are called yelpers.
With these components a community is created around local businesses, which is further fuelled by the use of an official Yelp blog, a weekly bulletin called Yelp, and a web page that has a wealth of information that clarifies how this platform works.
This tool is available both through website and application on major mobile devices. We can distinguish two types of use, depending on whether we are users or companies:
Users
We can access without having to be registered and we will obtain information about the local businesses of our city, being able to search by theme or typology that interests us. From there we access the business card that we want to consult and we will have all kinds of information, from a description, address, photographs, schedules, prices, etc. But perhaps the most interesting is the social part, since this platform is based on the comments that people leave on each place, making the recommendations become very important and online reputation is one of the main factors of use. Yelp business revenue model.
In case of being registered, we can obtain information of the business and also produce information about the same. We can rate it as we liked and, above all, put comments. One of the features of Yelp is that these are much more extensive than Foursquare and offer us much more qualitative information.
In addition, “gasification” or game elements are used to encourage comments and use of the tool. For example, when a person is very faithful he obtains the title of “Duke” of the business, similar to the “Mayor” of Foursquare.
Business
We can register our business by putting their name on the search engine. If it already exists, we can claim it on the right side, so that when Yelp checks that we are the owners, allow us to access the control panel and provide much information to users. In case it does not exist, it also offers us the possibility of adding the business and generating information about it. From here we have to manage the business like any other social geolocation tool, such as Foursquare or Google Local, maintaining the updated information of the same and, above all, answering and responding to the comments made by users that, in the end and at Will be our prescribers and will recommend our services if they are satisfied.
The control of the business not only gives access to very important statistics about the use in your company, but also allows to realize promotions directly of the style of 2 × 1 or gifts and incentives by the use of the tool.
Yelp is an mobile application that still does not have a large implementation in Spain , but in the United States is much more important, especially in certain commercial spaces of cities, where they manage to revitalize business thanks to this form of social dynamization.
In fact, there is a study, conducted by Michael Luca at the Harvard Business School, called “Reviews, Reputation, and Revenue: The Case of Yelp.com” , where the relevance of this social network and its Direct impact on local businesses.
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