LinkedIn posts impressive revenues

By • Aug 9th, 2011 • Category: Blog

LinkedIn has reported Q2 2011 revenues of $121 million, which is a 120% increase from revenues posted last year, while claiming that membership has climbed from 61 million to 116 million in the span of one year.

LinkedIn has been pretty successful in getting some of its users to buy into its premium services, however these numbers could be a one-off instead of a sign of things to come. Most of LinkedIn’s revenue is based on its role as a middleman between recruiters and potential employees. This is because the majority of LinkedIn’s premium users are job recruiters who are willing to pay to access full profile views and other perks afforded to premium users. The problem with that is that there are only so many recruiters in the professional world. The finite market for paying LinkedIn customers will saturate if it hasn’t already. The growth of users is impressive, but it won’t matter if the majority of those users can connect and network without LinkedIn’s premium services. As a result, we don’t think we will see this type of impressive growth coming from LinkedIn next year.

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