Founded in 2016 by brothers Alex and Anthony Zaccaria and their friend Nick Humphreys, Linktree has emerged as a popular but simple tool. Initially created to address the limitations of Instagram’s single bio link, Linktree allows users to house multiple links on a single, customizable landing page. This innovation has not only simplified online presence management but also changed the way people connect with their audience.
The Birth of Linktree
The idea for Linktree stemmed from the founders’ own frustrations while running their digital agency, Bolster. They needed a solution to efficiently manage multiple links for clients’ Instagram profiles. The first version of Linktree, developed in just six hours, was a simple yet effective tool that quickly gained traction. It was the first of its kind, turning a single bio link into a hub for multiple connections.
Rapid Growth and User Adoption
The Australian startup’s growth has been nothing short of phenomenal. By March 2022, the platform boasted over 30 million users, with around 40,000 new signups daily. Its user-friendly interface and the ability to integrate with platforms like Facebook, Twitter, TikTok, and YouTube have made it a favorite among influencers. The platform’s freemium model, offering both free and premium plans, has played a significant role in its widespread adoption.
Financial Journey and Valuation
Linktree’s financial journey reflects its growing influence. The company has raised $165.7 million across three rounds of venture funding, with a valuation of $1.3 billion as of March 2022. Despite the impressive valuation, the business lost $49.2 million and generated $25 million in revenue for 2022 as reported by Sydney Morning Herald. However, the setback didn’t deter investors such as Google from backing the innovative startup.
Linktree’s revenue primarily comes from a subscription-based model, offering three premium plans: Starter, Pro, and Premium. These plans cater to different user needs, from basic link sharing to more advanced features like analytics and dedicated customer support. The freemium model has been crucial in attracting a vast user base, with the potential for upselling as users’ needs evolve.
Challenges and Controversies
Despite its success, Linktree has navigated through challenges. In January 2022, the company faced criticism for deleting accounts of online adult workers, though it was later clarified that these accounts violated both the company’s terms of service and Australian law. In August 2022, 50 staff members were laid off to reduce expenses. According to SmartCompany.com.au, they cut 27% of its workforce in June 2023.
The Future of Linktree
Looking ahead, Linktree plans to expand its monetization channels, including enabling users to create mini-shops. This strategy could open new revenue streams by taking a percentage fee from sales facilitated through the platform. In December 2023, the business acquired and killed off a competitor. They bought Koji for an undisclosed amount and are sunsetting the product.