LinkedIn Gets More Revenue Streams
By Charlene Li
I’ve been in touch with Konstantin Guericke, co-founder of LinkedIn, over the past few days about the dual announcements they made today to 1) enable network-wide searching, and 2) charge for some LinkedIn Groups features.
My first reaction to the first announcement was that this was about time. LinkedIn’s value is that no other job site – Monster, CareerBuilder, HotJobs – has the quality network that LinkedIn does. And the reality is recruiters were trolling the LinkedIn network for leads, thereby reducing the quality of the experience for those of us trying to build a quality network. (SiliconBeat's Matt Marshall has more details on how it will work.)
So why shouldn’t LinkedIn monetize that network? A key aspect of the service is that all profiles available to recruiters will be anonymous, which is essential in maintaining trust in the service. Also, I’m assuming that there will be the opportunity to opt-out of being included in the recruitment service.
The second announcement also made a lot of sense – it’s somewhat confusing because it sounds like groups will have to pay up to $5,000 a year to host a private group on LinkedIn. The basic service remains free – but if a group wants their logo to appear on member’s profiles, they have to pay a fee based on the number of members. Very smart -- LinkedIn just created a brand advertising revenue stream!
So kudos to Konstantin and his team!