Sunday, January 30, 2011

Are You Linkedin?

Facebook is for friends and family, whereas Linkedin is for business and contacts and Skype for international VOIP. That’s the way we use the three social networking sites with Twitter often a mere distraction and something does less and less of.

Now Linkedin has announced an initial public offering which could value it at some $3bn.This may be tiny in comparison to Facebook’s $50bn valuation, but it marks a maturing of these social sites and if successful, could lead to others such as Twitter, Skype and Groupon following their lead. It also shows the high valuation of these companies in comparison to their revenues and profit, (Linkedin generated $161.4 mill revenues and $10 mill profit mainly through its premium subscription service in the first three quarters of 2010).

Facebook today claims some 600 million members to Linkedin’s 90 million users, but both are growing at a significant pace, both globally and within communities. Facebook being more personal attracts a different advertising and sometimes demographic profile that the business focused Linkedin. Here Linkedin can score with members with high disposable incomes and often large business budgets. Linkedin can also literally connect new business opportunities and even, stimulate job changes and advancement.

These new social giants are interestingly now competing for our attention whilst not competing in their offer. Its more a case users finding the right ‘horses for the right course’.

1 comment:

Jack W Perry said...

As an independent consultant, I find LinkedIn invaluable. It is the perfect place to send potential clients to review my creds.

I have received 3-4 gigs because of my LinkedIn page.

There is a downside and that some try to use as a place to cold call for business. It is annoying when people do that and I doubt ends up with sales.