linkedin learns lessons from facebook, gets smarter
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saul hansell over at the nytimes has some interesting scoop on linkedin’s plans to open up but in a closed way.
“we have no interest in doing it like facebook with an open a.p.i. letting people do whatever they want,” mr. nye said. “we’re not going to have people sending electronic hamburgers to each other.”
linkedin is going to take the lessons all online networking sites have learned from facebook, especially when it comes to platform building, and apply them to professional/business networking. while many of the features will be similar to those on facebook in principle, they will be molded to appeal to linkedin’s demographic.
original photo: gregpc
nye said something that i have always thought to be true of linkedin, and what i believe is the primary reason a majority of the people use the site.
“on many other web sites, there is a lot of noise and a lot of interference,” he said. “when you go to linkedin, we want you to be confident you can accomplish your goals, be productive and move on with your day. we are not trying to get you to come back multiple times throughout the day.”
in fact, if facebook is an airport lobby (noisy, heavily trafficked and so on), linkedin is the vip lounge without the price of admission (nice/clean, quiet and comfortable, get things done).
other points of note:
- linkedin is making money: facebook maybe growing faster than any other networking site and may be valued at $100 billion dollars, but linkedin is making money. in fact, if the site is on target, it will be making $75 million to $100 million in revenue by next year.
- there will be an ipo: unlike facebook, where everyone is guessing/hoping there will be an ipo, linkedin isn’t shy to say it. though they aren’t in a hurry to get there, they are building what will at one point become a public company.
- linkedin will not be gobbled up by facebook: the company understands that facebook poses a threat to them but they are determined to provide a more targeted experience to professionals and stand their ground.
Technorati Tags: facebook, linkedin, social networking, business networking, professional networking
October 12th, 2007 at 9:39 am
I stumbled this because I think it’s a great article. It underlines the reason why LinkedIn and Facebook aren’t meant to be compared. They’re both great sites, and while FB *can* be used, quite successfully for business, LI is *for* professional networking.
However, I’m puzzled by the perception you have of Facebook. I think the noise comes from the way it is used - you can opt out of all of the noise and use it just for business socializing if you so choose.
October 12th, 2007 at 9:50 am
thanks tinu,
the perception i have is from how everyone i know uses it. and yes, it’s not facebook’s fault, but it is a culture that exists on the site.
linkedin on the other hand has a very different culture that allows you to accomplish more.
October 12th, 2007 at 11:19 am
Well written, Mu. Stumbled too. I can’t help the urge of wanting to say Bill Nye the Science Guy though!
October 16th, 2007 at 8:38 am
FB is too cluttered. LinkedIn is a poor attempt at a social networking site, they might as well put up a excel list of your contacts. Its the same thing. I think FB will double in size over the next year. LinkedIn will continue to have decreased subscription rate and a vast drop in page views.
October 16th, 2007 at 8:38 am
FB is too cluttered. LinkedIn is a poor attempt at a social networking site, they might as well put up a excel list of your contacts. Its the same thing. I think FB will double in size over the next year. LinkedIn will continue to have decreased subscription rate and a vast drop in page views.
October 16th, 2007 at 11:34 am
Is Linked-In paying people to advertise for them? No offensive Mohammad but judging by this blog I would say you are deeply routed in Linked-In. =)
I’ve used Linked-In for quite some time and I’ve used Facebook for even longer. I disagree, I think the same demographic exists on both sites; Facebook is just bigger.
I don’t believe either site facilitates true Business Networking rather they are both capable of “Social Business Networking.”
As the adult segment is not so “untapped” anymore sites like Facebook and Linked-In must now actually win customers from each other. Hence the scramble to differentiate from the other.
Does the fact that Linked-In caters to adults (who presumably have, and talk about their jobs)make it an effective revenue generating tool? Not really.
BNI, Chamber of Commerce, and referralkey.com are actual business networking tools focused on results.
After the novelty of adults being on networking sites wears off I think people are going to really have to consider what do services like Facebook and Linked-In truly mean to their bottom line?
People will swear by these sites if they have invested time into amassing a huge friend list but as the demographic spreads thin the ability to differentiate becomes less clear.
Why Linked-In over Facebook?
Because I can paste my resume all over the net?
Because I can be “friends” with every employee at Wachovia?
Because they said they are for business people and Facebook didn’t?
The most recent news in the industry all points to the fact that the big social networking sites are going to have to specialze and offer a true value.
A word pad, jazzed up forum, and a place to tack a picture don’t really cut it anymore.
As an attorney with my own practice I can tell you I’ve never gotten a single referral due to my 1,000 friends on Facebook or Myspace.
It’s time to differentiate between “Social Business Networking” and true “Business Networking”.
Sincerely,
Devon Cruxfield
October 16th, 2007 at 11:37 am
@crux, no they are not.