“Hey, Yelp: Your review algorithm is genius stuff. I see you filtering out shills and inexperienced critics. I know your star ratings are all mathified. Some reviewers probably don’t mind, but I do. Yeah! Keep it up!!!!”
“Our business school study finds that a one-star improvement in Yelp ratings is associated with a 5% to 9% revenue boost.”
“The first time Yelp’s salespeople called my shop–yeah, they have a big sales team–I was skeptical. Ads? Facebook charges like $1 per 1,000 impressions. Yelp is around $500. I was like, no WAY. But my paid subscription lets me promote good reviews and tweak my page. And I’m not alone, cuz Yelp’s paying clients doubled last year, to 35,000+.”
Bought Yelp stock bc a banker buddy suggested it (he’d had a few, so, you know). Warning: It isn’t a high riser. But in 2012, revenue was projected at more than $130 million–up more than 50% from a year ago, so booyah. A web IPO that holds its own. I likey.
Illustration by Owen Gildersleeve, Photograph by Victoria Ling