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Forbes, July 16, 2012

LinkedIns Money Machine

180,091 Forbes.com Views

George Anders’ cover story on how LinkedIn efficiently turns customer data into hard cash showed that, while Facebook draws more users and headlines, the business-focused network makes more money per user-hour: raking in $1.30 from each member, compared with Facebook’s take of 6.2 cents.  Business Insider’s Owen Thomas wrote: “FORBES has LinkedIn CEO Jeff Weiner on the cover-but the professional social network’s business model is the real hero of the story…Anders describes LinkedIn’s most expensive product offering, LinkedIn Recruiter, as a ‘Bloomberg terminal’ for talent scouts.  It costs up to $8,200 a year per ‘seat’ or user license.”  LinkedIn fans spread the story via twitter.  Peter Guber, owner of the NBA’s Golden State Warriors and co-owner of the Dodgers, posted: “@jeffweiner shares why @LinkedIn is the 21st-century version of a little black book.”  Seeking Alpha founder David Jackson said: FORBES’ cover story on LinkedIn’s business model is a must-read for owners of $LNKD.”  The story scored hundreds of “up” votes on Reddit, where users (many of whom bristle at Facebook’s use of personal data) seemed to be okay with LinkedIn making megabucks from their user information.  JanneVee wrote:  “I’d rather share information on LinkedIn than Facebook.  At least I know who is paying for your information on LinkedIn, and it could in the end benefit me in some way (like a better job and/or higher pay).”  Anathem wrote that LinkedIn is so useful it can profit off him all it wants:  “I don’t mind my personal information being used to make LinkedIn money – it provides value back to me by letting me keep track of business relationships.  That has a different dollar value for different people, but for me it’s pretty high.”

November, 19 2012