Why Yelp doesn’t make much money

Are you a small business owner and you get a lot of calls from Yelp selling you to invest in their ads? Well Yelp is a informational site and it doesn’t post Google AdSense ads.

Over 80% of Yelp’s revenues comes from local advertisers. In 2015, Yelp had over 110,000 local businesses advertising on its platform.

Yelp has had a difficult time monetizing the business of recommendations into a growthie tech company that can can compete with the biggest tech companies out there like Facebook and Google.

Yelp as a company is going through a couple of transitions. From a consumer side, it’s going through a transition of being purely an information or a research site to one that’s more transactions oriented. If you could actually go to the site, see those reviews and make a reservation at one of those sushi restaurants or order delivery through a partnership that Yelp has developed with GrubHub. So it’s moved from being a purely information site to being more of a transaction site.