These days, the majority of businesses, “influencers” and some individuals, are all using a landing page-based website to promote their appearance on multiple social media pages.
These sites are becoming more and more popular, with the most popular of these being Linktree. Others exist too, though the idea with them all is the same.
But when a person visits the landing page of the person, there are no display adverts, nor do any of the users have to pay to use the service.
You could be forgiven therefore for wondering how Linktree makes money out of this arrangement. In this article, we explain how this is done.
About Linktree
Linktree was founded in 2016, with Alex and Anthony Zaccaria teaming up with Nick Humphreys to develop the website. The founders have attracted significant outside investment since being founded.
The website enjoyed early success, with thousands of users signing up within the first month. The numbers swelled over the next two years.
But there was a blow in 2018, when Instagram – which provided significant traffic to Linktree – banned the site, labelling it as “spam”.
Instagram later lifted the ban, and by 2019, there were over a million users. This number has multiplied, with over 15million people signing up to Linktree now.
What do people use Linktree for?
Essentially, Linktree provides a person or business with a landing page where they can link to a range of websites or social media profiles.
For example, Generation95 would use Linktree to provide any visitors with links to our main website, social media profiles, our parent publisher, and more.
Linktree provides a one-stop location for users to advertise all of their profiles or websites. Then, crucially, users can enter the link to the page on other social media sites.
One of the annoying elements of social media is how a person can only use one URL on Twitter and Instagram. This is where Linktree steps in.
Businesses are able to revolve their entire marketing strategy around Linktree. The data and analytics from the clicks are excellent, and third-party integrations give them valuable information.
How Does Linktree Make Money?
So, all of the above is very useful, and people both set up profiles, and visit others. But as mentioned, there are no display adverts, and it is free to join. So how does it make money?
Linktree’s business model uses the freemium business model. This model is used by many businesses in the modern day. Essentially, a freemium model involves all users being given a free, albeit limited, profile. For the vast majority, this will suffice.
However, some will want more. Anyone wanting the premium features will need to pay. As long as a small amount of users do pay for the premium option, Linktree can afford to provide a basic experience for free.
To put this in context, Linktree offers a free plan. This free plan allows the user to link to as many places as needed, is able to accept payments, get basic user information and some analytics.
But the “PRO” service of Linktree gives more information to the user. They will be able to see where their clicks are coming from, seeing how users behave once they are on the site and have more advanced analytics availabe to them.
There are also many other benefits of the PRO service, including advanced customisation. The PRO service costs $6 per month.
There is also an “Enterprise” plan. This is for larger companies, and they will get a bespoke quote for their needs. This too is a paid service, with the exact fee being dependent on the services required.
As you can see, Linktree is a very low-cost platform to run, but with so many users, revenues are high. This makes it a very successful business model.
The Takeaway
Linktree’s homepage advertises itself as “the only link you’ll ever need”. An entire audience can reach all of the content of any company or “influencer” at the click of a button.
Linktree continues to grow in terms of number of users. While competitors do exist, they appear to be performing well, and will be hopeful of continued success in the years to come.
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Please note that we are not in any way affiliated with Linktree. We have merely provided this article for information purposes.
