How Does Quora Make Money? Quora Business Model Explained

Quora is a question-and-answer website that allows anyone to ask questions publicly or anonymously. As of now, Quora has grown thanks to several rounds of investments from venture capital firms. Among those firms are Peter Thiel’s Founders Funds and Paul Graham’s Y Combinator. Quora now generates revenues with advertising.

 

 

Business Model Element	Analysis	Implications	Examples
Value Proposition	Quora’s value proposition is to provide users with a platform to ask questions and get answers from a diverse community of experts and enthusiasts. It offers a vast knowledge base spanning a wide range of topics and interests. Quora emphasizes user-generated content and the ability to tap into the collective expertise of its user base. It aims to help users learn, share knowledge, and connect with others who share their interests or have similar questions.	Offers a platform for users to ask questions and receive answers on a wide variety of topics. Emphasizes user-generated content and community expertise. Provides a resource for learning, sharing knowledge, and connecting with like-minded individuals. Aims to fulfill users’ information needs and curiosity. Attracts users seeking information, advice, and diverse perspectives. Facilitates meaningful connections among users.	– Users can ask questions on Quora about virtually any topic and receive answers from a global community of experts, enthusiasts, and everyday individuals. – The platform’s emphasis on user-generated content fosters a dynamic knowledge-sharing environment. – Quora serves as a valuable resource for users looking to learn, seek advice, or explore diverse perspectives on various subjects. – Users visit Quora to satisfy their information needs, curiosity, and desire to connect with others who share their interests. – The platform encourages meaningful connections among users who engage in discussions, share expertise, or connect over common interests.
Customer Segments	Quora serves a diverse customer base that includes knowledge seekers, experts, enthusiasts, and advertisers. Knowledge seekers are individuals looking for answers to their questions or seeking information on specific topics. Experts and enthusiasts are users who contribute answers and engage in discussions on Quora. Advertisers are businesses or individuals looking to reach Quora’s extensive user base through targeted advertising. Quora’s user base spans various demographics and interests.	Addresses the needs of knowledge seekers seeking answers and information. Attracts experts and enthusiasts who contribute answers and engage in discussions. Offers advertising opportunities for businesses and individuals looking to reach Quora’s user base. Serves a broad and diverse user base with a wide range of interests and demographics. Provides a platform for knowledge exchange and community engagement.	– Knowledge seekers turn to Quora to find answers to their questions or explore topics of interest. – Experts and enthusiasts actively contribute to Quora by providing answers and engaging in discussions on subjects they are knowledgeable about. – Advertisers leverage Quora’s platform to target specific audiences and promote their products or services. – Quora’s user base consists of individuals with varied interests, expertise, and demographics, making it a versatile platform for knowledge exchange and community building. – The platform facilitates interactions and connections among users with similar interests or expertise.
Distribution Strategy	Quora operates as a digital platform accessible through its website and mobile apps. It provides a user-friendly interface for users to ask questions, provide answers, and engage in discussions. Quora utilizes algorithms to curate and display relevant content to users based on their interests and activities. The platform relies on word-of-mouth marketing, social media sharing, and SEO optimization to drive user growth and content discovery.	Ensures accessibility through online platforms and mobile apps with a user-friendly interface. Utilizes algorithms to curate and display relevant content to users. Focuses on content discovery through word-of-mouth marketing, social media sharing, and SEO optimization. Provides a seamless and engaging experience for users to participate in knowledge sharing and discussions. Utilizes data-driven insights to enhance user engagement and content relevance.	– Users can easily access Quora’s platform through web browsers and mobile apps, making it convenient to participate in knowledge sharing and discussions. – Algorithms curate content and display questions and answers relevant to users’ interests, enhancing the user experience. – Quora’s approach to content discovery involves word-of-mouth marketing, social media sharing, and SEO optimization to attract new users and retain existing ones. – The platform provides a seamless experience for users to ask questions, provide answers, and engage in discussions, fostering a sense of community. – Data-driven insights help Quora understand user behavior and preferences, allowing for continuous improvements in content relevance and user engagement.
Revenue Streams	Quora generates revenue primarily through advertising. It offers advertising solutions to businesses and individuals, allowing them to promote their products or services to Quora’s user base. The platform also offers a premium subscription service called “Quora Plus” (formerly known as “Quora Premium”), which provides enhanced features and an ad-free experience to subscribers for a monthly fee. Quora shares a portion of the subscription revenue with content creators who participate in the Partner Program.	Relies on revenue from advertising solutions for businesses and individuals targeting Quora’s user base. Offers a premium subscription service, “Quora Plus,” with enhanced features and an ad-free experience for subscribers. Shares a portion of subscription revenue with content creators through the Partner Program. Diversifies income streams to support financial stability.	– Advertisers use Quora’s advertising solutions to reach a diverse and engaged user base, promoting their products or services effectively. – “Quora Plus” subscribers enjoy an ad-free experience and access to premium features, enhancing their user experience. – Content creators who participate in the Partner Program earn a portion of the subscription revenue, incentivizing quality content creation on the platform. – Diversified income streams, including advertising and subscriptions, contribute to Quora’s financial sustainability and allow for continued platform enhancements.
Marketing Strategy	Quora’s marketing strategy includes content marketing, community building, word-of-mouth marketing, and social media engagement. It highlights the value of knowledge sharing, diverse perspectives, and the opportunity to learn from experts. Quora actively engages with its community of users and content creators through newsletters, forums, and events. It encourages users to refer others to the platform, fostering organic growth. The platform also leverages its high-quality content to improve its SEO and drive traffic.	Utilizes content marketing to promote the value of knowledge sharing, diverse perspectives, and learning from experts. Actively engages with the user and content creator community through newsletters, forums, and events. Encourages word-of-mouth marketing and referrals to drive organic growth. Leverages high-quality content to improve SEO and drive traffic to the platform. Focuses on building a supportive and knowledgeable community.	– Content marketing campaigns emphasize the benefits of knowledge sharing, diverse perspectives, and the opportunity to learn from experts, attracting users interested in these aspects. – Quora’s active engagement with the community fosters a sense of belonging, encourages user participation, and enhances the overall user experience. – Word-of-mouth marketing and referrals play a significant role in Quora’s organic growth, with users referring friends and colleagues to join the platform. – The platform’s high-quality content not only provides value to users but also helps improve its SEO rankings, driving more organic traffic. – Building a supportive and knowledgeable community enhances the platform’s appeal and encourages meaningful knowledge sharing.
Organization Structure	Quora operates with a centralized structure overseeing platform development, marketing, customer support, and community engagement. The company collaborates with advertisers and provides them with advertising solutions to reach their target audiences effectively. Quora maintains a dedicated support team to assist users with inquiries and technical issues. The platform actively engages with its community of users and content creators to foster a sense of belonging and knowledge sharing.	Employs a centralized structure to manage platform development, marketing, customer support, and community engagement. Collaborates with advertisers to offer effective advertising solutions. Provides a dedicated support team for user inquiries and technical assistance. Actively engages with the user and content creator community to build a supportive environment. Focuses on creating a positive and knowledge-sharing-oriented platform.	– Quora’s platform development team continuously enhances features and functionality to meet the needs of users and advertisers, ensuring a positive experience for all stakeholders. – Collaboration with advertisers allows businesses to leverage Quora’s extensive user base and target their messages effectively. – The dedicated support team assists users with inquiries, subscription management, and technical issues, enhancing user satisfaction. – Active engagement through newsletters and online forums fosters a sense of community and open communication among users and content creators. – Quora’s commitment to creating a positive and knowledge-sharing-oriented platform is reflected in its organization structure and operational focus.
Competitive Advantage	Quora’s competitive advantage stems from its vast and diverse knowledge base, user-generated content, and the ability to tap into the collective expertise of its user community. The platform’s emphasis on high-quality content and the opportunity to learn from experts differentiates it from other Q&A platforms. Quora’s active engagement with the community fosters a sense of belonging and knowledge sharing. Its monetization strategy through advertising and subscriptions supports its financial stability.	Derives a competitive advantage from its extensive knowledge base, user-generated content, and access to a diverse community of experts. Differentiates itself through the emphasis on high-quality content and the opportunity to learn from experts. Fosters a sense of belonging and knowledge sharing through active community engagement. Maintains financial stability through a diversified monetization strategy. Sets itself apart in the Q&A platform space through its unique combination of features and user-focused approach.	– Quora’s vast knowledge base and user-generated content provide a valuable resource for knowledge seekers, setting it apart from competitors in the Q&A space. – The platform’s emphasis on high-quality content and the opportunity to learn from experts appeals to users seeking authoritative and insightful answers. – Active community engagement through newsletters, forums, and events creates a supportive and enriching environment, enhancing user loyalty. – Quora’s diversified monetization strategy, including advertising and subscriptions, contributes to its financial stability and ability to invest in platform improvements. – The unique combination of features and its user-focused approach give Quora a competitive edge in the Q&A platform market.

Quora Business Model Explained

What is Quora?

Founded by Adam D’Angelo, former Facebook’s CTO, Quora is a question-and-answer site that allows anyone to ask any question; it is possible to do that on Google.

The main difference is that you get answers from real people on Quora. Google, instead, matches a user query with content available on the web. Also, Quora allows users to ask questions publicly or anonymously.

Quora has over 190 million monthly users, with millions of questions asked and answered.

Besides being a Q&A platform, Quora is a huge, engaged community.

Also,   many public people take the time to answer questions personally, just like Hillary Clinton starts answering Quora questions during the electoral campaign.

Or famous authors like Tim Ferris organize Q&A sessions during his book launch. Therefore, you can access expertise for free and easily.

This, of course, represents a great success for Quora.

What are the most frequently asked questions on Quora?

The most asked questions on Quora are in the following categories:

• Career advice (how can one become a good machine learning engineer?).
• Life advice (what skill should I learn for 1-2 hours a day to help me succeed?).
• Medicine and healthcare (what is the best natural treatment for cluster headaches?).
• Politics of the USA (how did Donald Trump win the 2016 US Presidential Election?).
• Dating and relationships (how can you be sure the person you’re going to marry is the one?).
• Jobs and careers (is software development really a dead-end job after 35-40?).

Source: https://techcrunch.com/2017/04/21/uniquorn

How much is Quora worth?

After receiving a series D investment of $85 million, Quora got total funding of $452 million.

This places Quora among the so-called Unicorn startups with a valuation of $1.8 billion, according to Tech Crunch.

If the company keeps growing and attracting larger investors, it will go for an IPO. However, before taking this step, Quora has to be able at least to generate revenues to sustain its growth.

How sticky is Quora? Quora vs. Reddit

By looking at the comparison between Quora and Reddit, it seems clear that Reddit is stickier than Quora:

Regarding page views and time spent on a page, Reddit shows 10:33 minutes and 7.43, respectively. Compared to Quora 2:34 minutes and 2.15 page views.

However, there are a couple of considerations here. First, Reddit has been around for longer (founded in 2005).

Second, Reddit is more of a forum where anyone can participate in the discussion. Quora is more based on writers’ ability to engage users.

And Quora’s ability to create the right environment to retain writers.

Therefore, Quora is much more about making knowledge and expertise available to its users even though both platforms are accessible from Google search results.

Often answers on Quora are way shorter than discussions on Reddit. Thus, many users might just get in, read the answer and leave.

Also, ever since Google has been experimenting with the so-called featured snippet, it has used more and more answers to complex queries, coming from Quora, as a way to answer users’ questions directly from the search results.

Therefore, Google might be de facto stealing traffic from Quora itself.

See how Google answers with a featured snippet to an otherwise complex query by getting content from Quora

Quora’s success?

Quora is a Q&A platform that empowers people to share and grow the world’s knowledge. The vast majority of human knowledge is still not on the internet. Most of it is trapped in the form of experience in people’s heads, or buried in books and papers that only experts can access. More than a billion people use the internet yet only a tiny fraction contribute their knowledge to it. We want to democratize access to knowledge of all kinds—from politics to painting, cooking to coding, etymology to experiences—so if someone out there knows something, anyone else can learn it. Our mission is to share and grow the world’s knowledge, and we’re building a world-class team to help us achieve this mission.

Source: https://www.linkedin.com/company/1039156/

I believe three critical factors contributed and contribute to Quora success:

Questions that Google can’t answer (Yet)

From the mission above, it’s clear that Quora is about knowledge.

When Google started; it was about organizing the information scattered around the web with smart algorithms. PageRank was the most intelligent at the time.

Able to put an order to a network made of billion disjoined pages.

Quora, instead, started from the opposite assumption. Take what’s inside experts’ people heads and make it available to anyone.

That is true; Google is moving more and more toward giving its users as many answers as possible (we saw that with the featured snippet and the transition toward voice search).

However, that knowledge is still organized by algorithms that extract relevant information from web pages. Instead, Quora starts from human creation and curation.

The algorithms play a role just in understanding people’s preferences, the so-called feed. In a world that is moving swiftly toward AI (Google is now an AI-first company), having this human approach, for now, might be the winning hand.

This connects to the next point.

Human vs. AI

In the digital marketing space, ChatBots are taking over. However, for how much any online business loves the idea of software that creates content automatically. People still like to interact with people.

Quora allows just that. Not by chance; the most popular questions are those related to life and career advice.

We all want to feel understood. There’s no better way than having other people share their experiences.

The paradox here is that in a digital world that moves toward automation and AI, having a community based on human interactions might be a winning strategy in the long run.

Quora is about Quorans

Another critical aspect is that Quora is as much about asking questions as it is about answering them.

Quora does not only provide value to its users but also to people who write. Many aspiring writers get on Quora each day to hone their craft. That is why they love to call themselves Quorans. 

Key Quora partners

There are few stakeholders involved in Quora’s success. Those are:

• Top Writers
• VIP Writers
• Users
• Power Users
• Publishers/Online Businesses
• Investors

The possible business model evolution of Quora

As of now, Quora’s business model is based on two main foundations:

• investors looking for ROI through exit or IPO
• and publishers/online businesses looking for ROI through advertising

Quora is successfully generating revenue through its advertising program. However, it isn’t clear yet whether the company is profitable or not.

Therefore, if, as of now, the company still has to rely on financial resources coming from investors plus advertising, the future will move more toward advertising alone to allow Quora to become profitable.

Of course, other monetization strategies will get experimented on in the meanwhile.

Value Proposition:

• Knowledge Sharing and Collaboration: Quora provides a platform for users to share their knowledge, expertise, and opinions on various topics. By asking questions and providing answers, users contribute to a collective pool of information and insights, fostering collaboration and learning among peers.
• Diverse Range of Topics: Quora covers a vast array of topics, ranging from technology and business to arts, culture, science, and beyond. Whether seeking advice, information, or opinions on niche subjects or broad categories, users can find relevant content and engage with experts and enthusiasts in their fields of interest.
• Personalized Content Feed: Quora offers a personalized content feed based on users’ interests, preferences, and activity. By analyzing user behavior and interactions, Quora delivers tailored recommendations, questions, and answers that align with each user’s unique interests and expertise, enhancing the relevance and value of the platform.
• Community Engagement and Interaction: Quora fosters community engagement and interaction through its question-and-answer format, comments, upvotes, and follows. Users can connect with like-minded individuals, follow topics of interest, and participate in discussions, debates, and knowledge-sharing activities, creating a vibrant and dynamic online community.
• Expertise Recognition and Networking: Quora enables users to showcase their expertise, build credibility, and expand their professional networks. By providing insightful answers, contributing valuable content, and engaging with others in their respective fields, users can establish themselves as thought leaders, attract followers, and forge meaningful connections with peers, industry professionals, and potential collaborators.

Revenue Streams:

• Advertising: Quora generates revenue through advertising solutions, including native advertising, sponsored content, and display ads. Advertisers can target specific audiences based on demographics, interests, and behavior, leveraging Quora’s user data and targeting capabilities to reach relevant users and promote their products or services effectively.
• Quora Partner Program: Quora offers the Quora Partner Program (QPP) as a revenue-sharing initiative for eligible users who contribute high-quality content to the platform. Participants in the program can earn income based on the performance and engagement of their content, including views, upvotes, and ad impressions, incentivizing users to create valuable and engaging content for the community.
• Quora Ads Platform: Quora provides self-serve advertising tools and solutions for businesses and advertisers to create, manage, and optimize ad campaigns on the platform. Through the Quora Ads Platform, advertisers can set campaign objectives, target specific audiences, bid on ad placements, and track performance metrics, enabling them to reach their advertising goals and maximize their return on investment (ROI).
• Lead Generation: Quora offers lead generation opportunities for businesses seeking to generate leads and acquire customers through the platform. By leveraging targeted question prompts, call-to-action (CTA) buttons, and lead generation forms, businesses can engage with potential customers, capture their contact information, and nurture them through the sales funnel, driving conversions and revenue.
• Data Licensing and Insights: Quora may monetize its user-generated content and data through data licensing agreements with third-party organizations, research firms, and academic institutions. By providing access to anonymized user data, insights, and trends, Quora enables researchers, marketers, and analysts to gain valuable insights into user behavior, preferences, and sentiment, generating revenue through data licensing fees and partnerships.

Marketing Strategy:

• Content Marketing and Thought Leadership: Quora engages in content marketing and thought leadership initiatives to showcase the value of its platform, promote user-generated content, and attract new users. Through blog posts, case studies, user testimonials, and educational resources, Quora highlights success stories, best practices, and innovative uses of its platform, demonstrating its relevance and effectiveness as a knowledge-sharing platform.
• SEO and Organic Discovery: Quora invests in search engine optimization (SEO) strategies to improve its visibility and rankings on popular search engines like Google, Bing, and Yahoo. By optimizing its website structure, content metadata, and keyword targeting, Quora aims to attract organic traffic from users searching for answers, information, or discussions on specific topics, driving user acquisition and engagement.
• Social Media Promotion: Quora promotes its platform and user-generated content through social media channels, including Facebook, Twitter, LinkedIn, and Instagram. By sharing popular questions, insightful answers, and engaging discussions on social media, Quora expands its reach, attracts new users, and encourages existing users to participate in conversations and contribute valuable content, enhancing community engagement and interaction.
• Email Marketing and Notifications: Quora utilizes email marketing campaigns and notifications to engage with users, drive traffic to the platform, and promote relevant content and discussions. Through personalized email newsletters, notifications of new questions or answers, and recommendations based on users’ interests and activity, Quora encourages ongoing participation, retention, and re-engagement among its user base, strengthening its community and content ecosystem.
• Partnerships and Influencer Collaborations: Quora collaborates with partners, influencers, and industry experts to amplify its reach, foster content creation, and enhance user engagement. By partnering with brands, publishers, and subject matter experts, Quora expands its audience, attracts new users, and enriches its content ecosystem with diverse perspectives and insights, driving growth and relevance as a knowledge-sharing platform.

Distribution Channels:

• Website and Mobile App: Quora offers its platform through its website and mobile app, providing users with seamless access to its question-and-answer platform across desktop and mobile devices. Whether accessing Quora through web browsers or mobile apps for iOS and Android, users can explore topics, ask questions, provide answers, and engage in discussions anytime, anywhere, enhancing accessibility and convenience.
• Search Engine Integration: Quora integrates with search engines like Google, Bing, and others, allowing its content to appear in search results for relevant queries. By optimizing its content for search engine indexing and ranking, Quora increases its visibility and discoverability, attracting organic traffic from users seeking answers, information, or discussions on specific topics, driving user acquisition and engagement.
• Widgets and Embedded Content: Quora provides widgets and tools for embedding its question-and-answer content on third-party websites, blogs, and online forums. By allowing publishers and webmasters to integrate Quora content into their platforms, Quora expands its distribution channels, reaches new audiences, and increases user engagement beyond its own platform, driving traffic and awareness through embedded content.
• Email and Social Sharing: Quora facilitates content sharing and distribution through email and social media platforms, enabling users to share questions, answers, and discussions with their networks. By incorporating social sharing buttons, email forwarding options, and referral links into its platform, Quora encourages users to amplify its content, attract new users, and foster viral growth through word-of-mouth referrals and social sharing, expanding its reach and user base organically.
• APIs and Integrations: Quora offers application programming interfaces (APIs) and integrations for developers, partners, and third-party platforms to access its content, data, and functionality. By allowing integration with external applications, websites, and services, Quora enhances its ecosystem, extends its reach, and facilitates content syndication and distribution across diverse digital platforms and channels, driving user engagement and adoption through integrations and partnerships.

Key Highlights

• Platform Overview: Quora is a question-and-answer website that enables users to ask questions publicly or anonymously. It differentiates from Google by providing answers from real people rather than algorithmically matching queries with web content.
• Investment and Growth: Quora has grown through rounds of investments from venture capital firms like Peter Thiel’s Founders Funds and Paul Graham’s Y Combinator. These investments have contributed to its valuation and growth.
• Revenue Generation: Quora generates revenue through advertising. It takes a percentage of the subscription fee that writers charge for access to their content.
• Founder and Mission: Quora was founded by Adam D’Angelo, former CTO of Facebook. The platform aims to democratize access to knowledge and empower people to share and grow the world’s knowledge.
• User Engagement: Quora boasts over 190 million monthly users, with a vibrant community of experts, professionals, and enthusiasts sharing their knowledge through questions and answers.
• Comparison with Reddit: While Reddit is stickier in terms of page views and time spent on a page, Quora focuses on creating an environment for knowledgeable interactions, attracting users who are interested in obtaining expertise.
• Quora’s Role in Google Search: Google sometimes uses answers from Quora in its featured snippets to provide direct answers to users’ queries, potentially redirecting traffic away from Quora.
• Factors Contributing to Quora’s Success:
  • Addressing questions that Google can’t answer, focusing on human expertise.
  • Emphasis on human interactions and personal experiences, catering to the desire for understanding.
  • Building a community of both question askers and answer providers (Quorans).
• Stakeholders and Partners: Quora’s success involves various stakeholders, including top writers, VIP writers, users, power users, publishers/online businesses, and investors.
• Business Model Evolution: Quora’s current revenue model relies on investments and advertising. While the platform is generating revenue through advertising, its profitability remains uncertain. The future is likely to focus more on advertising to achieve profitability, with potential experimentation of other monetization strategies.
• Valuation and Funding: After receiving a series D investment of $85 million, Quora’s total funding amounted to $452 million, resulting in a valuation of $1.8 billion.

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