LinkedIn said revenue rose 120% in the last quarter to $121 million. Net income rose slightly to $4.5 million. The company does not have much to say for itself in terms of margins. What Wall St. was excited about is that membership rose to 115.8 million, up 61% from June of last year.
LinkedIn makes money from the placement of advertisements on the pages of members. Revenue should grow if membership does.
The theory behind LinkedIn is that a circle of people built from fellow professionals will help them communicate about their business activities and aid those who are looking for jobs. Neither of those is entirely true. LinkedIn members often try to set relationships with powerful people they do not know, or barely know, simply to impress with their own lists. When these powerful people are approached, they often turn down invitations by refusing to respond to them
Most messages on LinkedIn are self serving. People discuss their jobs success and promote products or services. That becomes tiresome and some members turn away from the service because it is often just a billboard for boasting.
LinkedIn is supposed to be a place where people can look for new employees or get help looking for new work on their own. The messages of those looking for work often show a certain sort of desperation. If someone could find an appropriate new job, especially if he or she were unemployed, why turn to a group of people, some of whom they barely know?
Douglas A. McIntyre
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