LinkedIn (CSN, Wednesday, Week 9)
competing-with-social-networksyear-twoIn 2005, LinkedIn has 5M subscribers and needs to start monetizing. Offer "premium" accounts with better search, or offer paid messaging to people outside your network?
Hiring problems that LinkedIn solves << Search: In offline world, recruiters ask friends/contacts if they know anyone with qualification X. Several referrals (talk to my friend at company Y, ask her if she knows anyone) gets them to a candidate. - Incentive to act: middle links in referral chain have no vested interest in success of search - Recruiters can't ask too often; it gets annoying - Middle links in referral chain have to vouch for strangers - Referral chain is not clear; recruiters need to know who to ask At the time, LinkedIn has 5M members, but average "reach" (members within four connections) is only 50K! Search is not working great. Solution: convert from original model (brokered meet platform) to a bar. Solves other problems for job seekers: - Might not be looking for a job (busy; don't know what opportunities are available) - Sends adverse message to current employer: it's not okay to be job seeking