Quora Business Model: Answers for all your Questions!
Quora came into existence when former Facebook employees, Adam D’Angelo and Charlie Cheever, set out to create a question-and-answer website in 2009. Hence, the Quora business model was born with the website. Quora was initially available through its website only, but iOS and Android apps were later introduced.
The content on Quora is created and edited by the users of the website. Questions are asked by users who need help with a certain topic. The website took off because the answers usually came from people who were considered leaders in their field.
Moreover, the free access to the questions and answers made it a viable source for all users. You only needed a Quora account to start asking questions and answering them. Quora has created a community that has supported itself over the period of years. Furthermore, Quora is growing at a blazing rate over the years.
The idea behind Quora was to build a platform that would include high quality answers to questions that are asked by people around the world. As of now, the platform is doing well in delivering quality content to its users.
The question-and-answer portal has an estimated value of $8 billion. Similar to other social media networks such as Snapchat and Facebook, Quora uses advertisements to generate revenue. Targeted ads are shown to users so that they are helpful for users and the company paying for the ads.
The Idea behind Quora
The age old question associated with many successful ventures is: how do they make money? The answer to this question is rather simple. You need to create a solution for a problem that exists. It could be a problem that has not been addressed yet. It is all about seizing the opportunity.
Quora saw the need for a portal that would allow users to ask and answer questions. Hence, the idea was brought to life. The content on Quora is entirely curated by its users. Quora wants to focus on creating a knowledge base that would be useful for all kinds of people. The company focuses on providing features that would sustain the quality of content and provide better user experience.
Some of the features that have been introduced in the past include merged questions, wikidata references, translations of questions and answers etc. These features were added with the sole aim to drive up user engagement.
Here are some interesting facts about the company that is based in Mountain View, California: Quora sees around 300 million active users on a monthly basis. Also, the Q&A portal hosts about 400,000 topics online. Around 40% of the total traffic on Quora comes from mobile users. Lastly, as per March 2017, 13,304,529 questions were asked on Quora.
Quora Business Model in Early Days
Unlike most startup ventures, Quora was making no money in its initial days. This is something common with most startups. The company sustained itself and kept it afloat by using the capital it had raised through four rounds of funding.
Even when the company was not generating revenue, the valuation kept increasing. It was valued at $1.8 billion after they successfully secured the series D funding worth $85 million.
How Does Quora Business Model Make Money?
In April 2016, Quora started testing advertisements on selected questions. The motivation was to see how the users would react to the introduction of advertisements and how it would affect the user experience. After a successful run of tests, advertisements were embedded in the UI of the app and website.
Moreover, the number of ads on Quora have grown in recent years. The ads are not intrusive, but it is clear that the number of ads on the Q&A website have certainly grown.
Unlike other companies, Quora wants to use targeted advertising to provide greater value to its user base and customers. Quora has found ways to integrate ads into its ecosystem that they often do not feel like ads anymore.
Too many ads are known to affect user experience. Hence, it is key to integrate ads in a manner that is easy on the eyes of the users. Most users are content with the use of advertisements. Users only hate them when it feels like the ads are being shove down the throat. So, it is necessary to find the right balance. Quora has a done a great job in incorporating ads in its business model.
Ads can be found on various pages of the website. You can find them on the home page. Also, you can find ads in the forums. The ads are strategically placed around the whole social media network. Different ad spaces on the website carry a different rent price as well.
What Are the Chances of Sponsored Posts Plaguing Growth of Quora Business Model?
If we think about this closely, this is a rather valid questions. It is common to see different sponsored posts as you scroll through your feed. These sponsored posts are shown to users on the basis of their interests and activities.
While these sponsored posts are targeted to the users for maximum benefit, there are good chances that these sponsored posts may not contain answers that a user might be looking for. This could significantly affect the effectiveness of Quora as a credible questions-and-answers social networking platform.
The team at Quora has made it clear on several occasions that they are motivated to provide the best possible user experience to the Quora community. They want to stay true to their initial idea of a free-to-use Q&A portal that could help millions of people around the world.
Hence, any changes to their current revenue model would challenge the mission of the company. Quora does not want to put out sponsored content for its users. Instead, they want to promote content that is helpful for the users.
Quora is a Q&A portal that was created by Adam D’Angelo and Charles Cheever in 2009. Moreover, this portal took off for its community and high quality answers from experienced individuals.
The company saw massive growth rates over the year. Also, it still sits with an estimated value of $8 billion. They make their revenue through targeted advertisements. Furthermore, Quora focuses more on providing user satisfaction over advertisement-based revenue model.