They do also get ad revenue which is really what so much of their “value” is being based on. Since their users are perceived as the highly educated high earner category it’s the gateway to a lucrative market.
Re: LinkedIn
AskAsa
5/12/2011 4:26:20 PM
Yes, agreed. I wonder where the company makes its money. I understand it's recruiting, marketing and premium memberships, respectively. But I've heard some complaints about the premium memberships-some people say there's not a lot of value added to them.
LinkedIn needs to strike while the iron is hot. I t hasn’t evolved its functionality as much as it should have over 8 years and its new features are not rolled out with adequate user information. Competition will heat up and eventually erode its unique position. To make it “worth it” it will need to demonstrate that it can evolve to meet the needs of its users long term.
Re: What's it really worth?
Broadway
5/10/2011 11:22:58 PM
Speaking of the downsides, Noreen hit one of the nails on the head--linkedin's struggles to keep up with its increased usership. As a daily user of the site---I run one group and post to several others each day--I've grown accustomed to burps and bugs and shutdowns ... As well as site updates that seem to make it mire difficult to use rather than easier. Anecdotal sure...but I think if you asked around you'd hear similar complaints.
Re: What's it really worth?
TelecomFreq
5/10/2011 8:34:38 PM
A very good point, the name carrys some weight so, that might be perceived as the most value in a deal.... But this is all just speculation, and we all know where that gets people lol
Re: What's it really worth?
Scott McCaig
5/10/2011 5:26:29 PM
I agree, but if it's absorbed, I bet they keep the branding. As awkward as I found the name originally (while it might have flowed verbally, it looks very strange when typed), it's branding has huge value now. It's the default for its market.
Re: What's it really worth?
TelecomFreq
5/10/2011 4:22:32 PM
Scott, though i also like LinkedIn and I do find its ability to link people to groups and other people very innovative I think giving it a 10 year run might be a bit to giving. I do think their model will be around but i would be willing to bet we see them merge with another Internet company that has a technology they can merge with and improve their standing.
just my thought, they will be around, but it might not be as LinkedIn in 10 years...
Re: What's it really worth?
Scott McCaig
5/10/2011 12:59:24 PM
Glorified address book, perhaps. But I've found it to be better than any address book I've ever found. It's also great for the eqivalent of focused direct mail. For example, looking for a new job, I can join a logical linkedin group, search the members by title and location (e.g sales Director in Denver), and send a targeted email for free to the hundred or so that match. I'll typically get about a 20% hit rate of replies to offer me help finding a new job! My address book can't do that. Linkedin is around to stay for at least ten years.
Re: What's it really worth?
tokyogai
5/10/2011 12:55:35 PM
It should concern all of us. For some reason Microsoft can't seem to understand that they have all the technology of Skype and just poor business practices have been the barrier. I think many others could do what Linkedin is doing with minimal investment.
The real value
tokyogai
5/10/2011 12:53:37 PM
I think the real value of LinkedIn comes from the profound change it makes to the whole recruitment world. Instead of just a web based service like Monster, you can now link with and get recommendations from friends and others in the industry to either help find employees or a new job. It is a far more trusted way that does indeed bring a value. It does not totally replace recruiters, but it does take a slice out of their market. Whether this is defensible and brings enough revenue for the long term still remains to be seen.
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