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Yelp Inc. Message Board

  • beatstockpromotersdotcom beatstockpromotersdotcom Jan 19, 2013 9:55 AM Flag

    YELP is a great idea but


    They still are like all the other social sites that created great idea's but did not plan a good way to monetize their sites.

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    • Agree - In the first place you should only plan to collect pennies from User Generated Content Yelp needs to collect dollars. Yelp really only provides a hugely scalable infrastructure to hold UGC - but when it comes down to it, that infrastructure - essentially the prettiness of the site - could be done by a handful of teenagers in Bangalore. Right now Yelp is pouring all of its resources into generating advertising sales by hiring call centers to harass businesses but the ads are pretty worthless from the perspective of both the advertiser and the Yelp user, so I'm pretty sure there is negative ROI on that front. Yelp's best hope would be an Open Table or Trip Advisor model where they provide a service rather than just ads. But I think that ship has sailed - especially given Yelp's somewhat contentious relationship with a lot of businesses. A buy-out is always a risk (I mean look at MSFT and their overpayment for AvenueA, you can't rule out craziness), so I'm playing it safe with a mix of shares and options long and short to get a net short position with some protection against the big loss. - JLT

      Sentiment: Sell

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