LinkedIn gets a revenue stream through job listings
By Charlene Li
With 1.7 million members, LinkedIn is not only one of the largest business-oriented social networking sites, it’s also has a high degree of trust as people are linked to each other only if they mutually agree to be so connected. The result is a network that’s been effective for introductions – from opening the door for a sales meeting to getting an inside track to a job interview.
While HR people have been mining LinkedIn for managerial and executive hires, it’s been frustrating because they have to slowly build their own networks in order to leverage the power of LinkedIn. But on Sunday, LinkedIn introduced LinkedIn Jobs, where companies can directly post jobs on the site and make them available to everyone. While the posts are free during the preview, the company looks like they plan to charge soon (there’s a scribbled out figure, presumably two-digits so likely under $100 for a posting).
This addresses one of the biggest problems plaguing employers – unqualified candidates that reply to job postings on the traditional job boards like Monster, CareerBuilder, and HotJobs, as well as executive recruiting sites like TheLadders and ExecuNet. Besides the fact that the LinkedIn pool tends to be more professional, job candidates using LinkedIn Jobs will be required to have a profile (great way to build that user base!). Employers can then see not only an attached resume, but also the extended network of that person and any referrals or recommendations associated with the profile.
I spoke with Konstantin Guericke, VP of Marketing at LinkedIn, about the target market for LinkedIn Jobs. Their hope is to not only take share away from the traditional job boards and newspapers, but also to open job a new market: hiring managers. “[We will] open up markets that are currently served by the common process of hiring managers sending email blasts to their contacts asking them if they know any Product Managers, great sales people, stellar engineers, etc.”
What it means:
1) While small, LinkedIn’s approach takes recruiting beyond today’s current model of “list and hope” – both recruiters and candidates can “work the network” to get better information, leads, and matches throughout the process.
2) LinkedIn will tap into a new, sustainable revenues stream, following in the footsteps of upstart Craig’s List. LinkedIn will presumably be able to grow the fee that it charges over time as it also grows its network.
3) Monster Networking’s attempt at creating a job-oriented network needs to be overhauled and better integrated into its resume database. Look for Monster’s subsidiary, Tickle, to leverage its matching experience in online dating to bring innovation to Monster’s efforts.