"We believe Yelp management is considering models (lead-gen, subscription upsell, hybrid, other) for eventual monetization of RAQ [request-a-quote]," Suntrust analyst Matthew Thornton wrote in a note to clients Thursday.
This makes it likely that your business, no matter who your target audience is, would benefit from a better star rating.
New products, underpenetrated categories and a large domestic market opportunity should continue to propel revenue growth at a high rate for years to come, while sales force productivity and SG&A leverage should lead to rapidly increasing free cash flow over the next decade.
As of this weekend, Yelp has officially logged 100 million reviews on its site -- something that chief executive Jeremy Stoppelman said he couldn't have dreamed of when he first started the company as a clunky email recommendation service. Burns credits the community manger system for helping Yelp retain a lot of its personal touch over the years by handing over community management to people with the right attitude to make the review site work.
Since we know Negative reviews would outweigh positives (based on statistics) a businesses would need to encourage satisfied customers to leave positive ones just to keep things balanced.
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