Strategy question
How would you grow revenue on Yelp for Business?
- Yelp
- Strategy
- Medium
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What this question tests
Revenue growth strategy for a B2B advertising and subscription product, balancing customer value against monetization pressure.
How to approach it
- Clarify the current revenue mix, subscription tiers for business profile features versus advertising and lead generation products.
- Identify growth levers, upselling free business listing owners to paid tiers, and increasing ad spend from existing advertisers.
- Diagnose the biggest opportunity, likely converting the large base of free business profiles, since paid conversion typically has more headroom than raising prices on existing payers.
- Propose a mechanism, showing businesses concrete ROI data, e.g. profile views or leads generated, to justify upgrading to a paid tier.
- Consider a self-service ad product for small businesses who cannot afford a sales-led enterprise deal.
- Define success metrics, free-to-paid conversion rate and ad revenue per active business account.
What a strong answer includes
- Identifies the free-to-paid conversion funnel as the likely highest-leverage growth lever, given the large base of free business listings.
- Proposes a concrete conversion mechanism, showing ROI data like profile views, rather than a generic 'upsell more' claim.
- Distinguishes self-service small business advertisers from larger accounts needing sales-led engagement.
- Sets a clear revenue metric, ad revenue per active account, tied directly to the stated growth goal.
Common mistakes
- Proposing to simply raise prices without considering the impact on business retention.
- Not addressing the large base of free users as an underexploited growth opportunity.
- Ignoring the difference between self-service and sales-led business segments.
Likely follow-up questions
- How would you convince a free business listing owner to pay.
- How would you segment small versus large business advertisers.
- What would you do if conversion rate stays flat despite the new ROI data.
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop