5/24/11
Good morning, All, and you knew that was coming.
Ok, it may seem like semi-old news by now, especially with TechCrunch Disrupt going on. Still, attention must be paid. Linkedin IPO is the first so-called social media company to go public – and the biggest internet site to go public since Google – which naysayers also claimed, at the time, was overvalued. And the bubble talk is bubbling up once again.
There are huge differences between Linkedin and the sites that went public during the ‘90s bubble. First, Linkedin grew organically, rather than paying a fortune in advertising to acquire users. Next, Linkedin is a site one returns to time and again, and where one expands one’s own personal network in order to bring more value to the experience – and to Linkedin itself. In fact, between November 2010 and March 2011, the number of Linkedin users literally doubled. Next, Linkedin is profitable and has been since about a year or so after its launch – and has multiple profitable revenue streams: Paid job postings, advertising and a subscription model (CHART OF THE DAY: Where LinkedIn’s Revenue Comes From http://read.bi/kXIEQg)