LinkedIn – Business model

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LinkedIn has reached 1,500 employees in 2010 and during the first nine months of 2010 turnover of 161 million dollars in sales and $ 1.9 million in earnings. Revenues come from three sources: the sale of premium service subscriptions (27% of revenues), service contracts (41%) and marketing services (32%) [4]. In the first type of these benefits (called “Solutions” solutions) it includes consulting services (especially LinkedIn Corporate Solutions) and Advertising (LinkedIn Jobs) to help companies identify the best candidates for adoption; the second is designed to offer marketers new opportunities for contact with partners and consumers (through advertising, even opinion polls, email, test campaigns in selected groups, etc).

Taking advantage of these assets, the company owned largely by venture capitalists in January 2011 began the process of listing on the Stock Exchange to raise $ 175 million with which to cope with the increasing operating costs.

LinkedIn and accusations of spam

LinkedIn has been criticized for sending email messages indiscriminate advertising their own services or those of advertisers, allowing users to send invitations indiscriminately. The other suspect is on the service is to extract email addresses webmail of its members. In 2012, the SBL Spamhaus blacklist LinkedIn added between “dangerous launchers” dedicated to sending e-mails drawbacks (spam)

LINKEDIN AS COMPANY
  • Business started by professionals network

Resumen

LinkedIn is a network not used for entertainment. Then, it ends up running risks with its finances and therefore its future. To balance this deficit, the Premium L service alleviates the bank accounts of the company.

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