{"id":3997,"date":"2015-12-08T22:44:38","date_gmt":"2015-12-09T03:44:38","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/linkedin-connecting-professionals-to-their-dream-jobs\/"},"modified":"2015-12-08T22:44:38","modified_gmt":"2015-12-09T03:44:38","slug":"linkedin-connecting-professionals-to-their-dream-jobs","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/linkedin-connecting-professionals-to-their-dream-jobs\/","title":{"rendered":"LinkedIn: Connecting Professionals to their Dream Jobs"},"content":{"rendered":"

It has been 12.5 years since LinkedIn was founded on May, 2003. Establishing itself as the largest professional network during this period, the company has achieved impressive milestones, such as a market capitalization of more than $30 billion (as of Dec 4th<\/sup>, 2015) and a user base in over 200 countries of approximately 396 million members (as of 3Q15 release to the market). LinkedIn is a clear winner in terms of aligning its business model to its operating model. The company creates value for its members, both individuals and companies, while managing to monetize properly on the value created.<\/p>\n

LinkedIn creates value to individual members and companies by \u201cconnecting them to the people, knowledge and opportunities that matter most to them professionally\u201d. In the professional network, members publish their professional background, interests, capabilities and future goals and, in exchange, LinkedIn provides members with access to products, tools, applications, contacts and opportunities for them to manage career interests. There is a win-win situation: to individual members, by connecting them with career interests, and, to companies, by connecting them to the desired talents. Each new individual who publishes his professional details adds value to the whole system, strengthening LinkedIn leverage of network effects.<\/p>\n

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As a strategic decision of its operating model, LinkedIn chose to operate in a freemium<\/em> model: it offers a broad range of services to members without charging any price and, for those who want additional tools and accesses, it offers paid solutions. The freemium<\/em> model strengthens network effects by significantly lowering the commitment a new user has to make to become part of the professional network.<\/p>\n

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LinkedIn generates revenues from three products lines: Talent Solutions, Marketing Solutions and Premium subscriptions. All the product lines are sold through two distinct distribution channels: an offline sales force targeting companies of varied sizes and industries, and an online self-serve channel that enables individuals and\/or companies to purchase premium subscriptions. LinkedIn also has an established technology infrastructure hosted on a network located in multiple third-party facilities, leasing data centers services from other companies. It might be the case that, in the near future, LinkedIn will have to own its data center capabilities as its member community keeps growing (similar to what Facebook has done).<\/p>\n

Below is a short summary of the three main product segments that the company uses to monetize over the value created to its members:<\/p>\n