LinkedIn

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LinkedIn Corporation LAD
Logo of LinkedIn
Type Public
Traded as NYSE: LNKD
Founded December 2002 (2002-12)
Mountain View, California
Headquarters Mountain View, California, U.S.
Area served Worldwide
Founder(s) Reid Hoffman
Allen Blue
Konstantin Guericke
Eric Ly
Jean-Luc Vaillant
Chairman Reid Hoffman
CEO Jeff Weiner
Industry Internet
Revenue Increase$2.21 billion (2014)[1]
Net income Decrease$15 million (2014)[1]
Employees 7,600[2]
Slogan(s) Relationships Matter[3]
Website www.linkedin.com
Written in Java[4][5]
Alexa rank Decrease 14 (August 2015)[6]
Type of site Social network service
Advertising Google, AdSense
Registration Required
Users Over 400 million[7]
Available in Multilingual
Launched May 5, 2003; 20 years ago (2003-05-05)
Current status Active

LinkedIn /ˌliŋkt.ˈɪn/ is a business-oriented social networking service. Founded in December 2002 and launched on May 5, 2003,[2] it is mainly used for professional networking. As of 2015, most of the site's revenue comes from selling access to information about its users to recruiters and sales professionals.[8]

In 2006, LinkedIn increased to 20 million members.[9] As of October 2015, LinkedIn reports more than 400 million acquired users in more than 200 countries and territories.[7][10]

The site is available in 24 languages,[11] including Arabic, Chinese, English, French, German, Italian, Portuguese, Spanish, Dutch, Swedish, Danish, Romanian, Russian, Turkish, Japanese, Czech, Polish, Korean, Indonesian, Malay, and Tagalog.[12][13] As of 2 July 2013, Quantcast reports LinkedIn has 65.6 million monthly unique U.S. visitors and 178.4 million globally,[14] a number that as of 29 October 2013 has increased to 184 million.[15] In June 2011, LinkedIn had 33.9 million unique visitors, up 63 percent from a year earlier and surpassing MySpace.[16] LinkedIn filed for an initial public offering in January 2011 and traded its first shares on May 19, 2011, under the NYSE symbol "LNKD".[17]

Overview

LinkedIn headquarters on Stierlin Court in Mountain View, CA

LinkedIn is headquartered in Mountain View, California, with offices in Omaha, Chicago, Los Angeles, New York, San Francisco, Washington, London, Dublin, Amsterdam, Milan, Munich, Madrid, Stockholm, Singapore, Hong Kong, China, Japan, Australia, Canada, India and Dubai.

LinkedIn has more than 7,600 full-time employees with offices in 30 cities around the world. LinkedIn started off 2012 with about 2,100 full-time employees worldwide, up from around 1,000 at the beginning of 2011 and about 500 at the beginning of 2010.

LinkedIn's CEO is Jeff Weiner,[11] previously a Yahoo! Inc. executive. Founder Reid Hoffman, previously CEO of LinkedIn, is Chairman of the Board.[11][18]

It is funded by Sequoia Capital, Greylock, Bain Capital Ventures,[19] Bessemer Venture Partners and the European Founders Fund.[20] LinkedIn reached profitability in March 2006.[21] Through January 2011, the company had received a total of $103 million of investment.[22]

History

Founding to 2010

The company was founded by Reid Hoffman and founding team members from PayPal and Socialnet.com (Allen Blue, Eric Ly, Jean-Luc Vaillant, Lee Hower, Konstantin Guericke, Stephen Beitzel, David Eves, Ian McNish, Yan Pujante). In late 2003, Sequoia Capital led the Series A investment in the company.[23] In June 2008, Sequoia Capital, Greylock Partners, and other venture capital firms purchased a 5% stake in the company for $53 million, giving the company a post-money valuation of approximately $1 billion.[24]

In 2010, LinkedIn opened an International Headquarters in Dublin, Ireland,[25] received a $20 million investment from Tiger Global Management LLC at a valuation of approximately $2 billion,[26] and announced its first acquisition, Mspoke,[27] and improved its 1% premium subscription ratio.[28] In October of that year Silicon Valley Insider ranked the company No. 10 on its Top 100 List of most valuable start ups.[29] By December, the company was valued at $1.575 billion in private markets.[30]

2011 to present

LinkedIn filed for an initial public offering in January 2011. The company traded its first shares on May 19, 2011, under the NYSE symbol "LNKD", at $45 per share. Shares of LinkedIn rose as much as 171 percent in their first day of trade on the New York Stock Exchange and closed at $94.25, more than 109 percent above IPO price. Shortly after the IPO, the site's underlying infrastructure was revised to allow accelerated revision-release cycles.[11]

In 2011, LinkedIn earned $154.6 million in advertising revenue alone, surpassing Twitter, which earned $139.5 million.[31] LinkedIn’s fourth-quarter 2011 earnings soared due to the company's increase in success in the social media world.[32]

In spring 2012, LinkedIn leased 57,120 square feet on three floors of the One Montgomery Tower building in the Financial District of San Francisco, which was expanded to 135,000 square feet by 2014.[33][34] In May 2012, LinkedIn announced its 2012 Q1 revenues were up to $188.5 million compared to $93.9 million in Q1 2011. Net income increased 140% over Q1 2011 to $5 million. Revenue for Q2 was estimated to be between $210 to $215 million.[35]

In November 2012, LinkedIn released their third quarter earnings, reporting earnings-per-share of $0.22 on revenue of $252 million. As a result of these numbers, LinkedIn's stock increased in value, trading at roughly $112 a share.[36]

In April 2014 it was announced that LinkedIn had leased 222 Second Street, a 26-story building under construction in San Francisco's SoMa district, to accommodate up to 2,500 of its employees.[34]

Acquisitions

In July 2012, LinkedIn acquired 15 key Digg patents for $4 million including “click a button to vote up a story” patent.[37]

Number Acquisition date Company Business Country Price Description Ref.
1 August 4, 2010 mspoke Adaptive personalization of content  USA $0.6 Million[38] LinkedIn Recommendations [39]
2 September 23, 2010 ChoiceVendor Social B2B Reviews  USA $3.9 Million[40] Rate and review B2B service providers [41]
3 January 26, 2011 CardMunch Social Contacts  USA $1.7 Million[38] Scan and import business cards [42]
4 October 5, 2011 Connected Social CRM  USA - LinkedIn Connected [43]
5 October 11, 2011 IndexTank Social search  USA - LinkedIn Search [44]
6 February 22, 2012 Rapportive Social Contacts  USA $15 Million [45] - [46]
7 May 3, 2012 SlideShare Social Content  USA $119 Million Give LinkedIn members a way to discover people through content [47]
8 April 11, 2013 Pulse Web / Mobile newsreader  USA $90 Million Definitive professional publishing platform [48]
9 February 6, 2014 Bright Job Matching  USA $120 Million [49]
10 July 14, 2014 Newsle Web application  USA - Allows users to follow real news about their Facebook friends, LinkedIn contacts, and public figures. [50]
11 July 22, 2014 Bizo Web application  USA $175 Million Helps advertisers reach businesses and professionals [51]
12 March 16, 2015 Careerify Web application  Canada - Helps businesses hire people using social media [52]
13 April 2, 2015 Refresh.io Web application  USA - Surfaces insights about people in your networks right before you meet them [53]
14 April 9, 2015 Lynda.com eLearning  USA $1.5 Billion[54] Lets users learn business, technology, software, and creative skills through videos [55]
15 August 28, 2015 Fliptop Predictive Sales and Marketing Firm  USA - Using data science to help companies close more sales [56]

Lawsuit

In 2013, a class action lawsuit was filed against the company.[57]

It was settled in 2015 in favor of LinkedIn members.[58]

Membership

As of 2013, LinkedIn has more than 300 million members in over 200 countries and territories.[10][11] It is significantly ahead of its competitors Viadeo (50 million)[59] and XING (10 million).[60] The membership grows by approximately two new members every second.[61] With 20 million users, India has the fastest-growing network of users as of 2013.[citation needed]

In January 2014, the countries with the most LinkedIn users were:[10][62]

Country Users Penetration
United States 93 million 29.90%
India 24 million 7.72%
Brazil 16 million 7.69%
United Kingdom 14 million 22.41%
Canada 9 million 25.82%
France 7 million 9.91%
Spain 6 million 11.54%
Italy 6 million 9.88%
Mexico 6 million 4.72%
Australia 6 million[63] 23.88%

User profile network

The basic functionality of LinkedIn allows users (workers and employers) to create profiles and "connections" to each other in an online social network which may represent real-world professional relationships. Users can invite anyone (whether a site user or not) to become a connection. However, if the invitee selects "I don't know" or "Spam", this counts against the inviter. If the inviter gets too many of such responses, the account may be restricted or closed.[64]

This list of connections can then be used in a number of ways:

  • Obtaining introductions to the connections of connections (termed second-degree connections) and connections of second-degree connections (termed third-degree connections)
  • Users can find jobs, people and business opportunities recommended by someone in one's contact network.
  • Employers can list jobs and search for potential candidates.
  • Job seekers can review the profile of hiring managers and discover which of their existing contacts can introduce them.
  • Users can post their own photos and view photos of others to aid in identification.
  • Users can follow different companies and can receive notifications about the new joining[clarification needed] and offers available.
  • Users can save (i.e. bookmark) jobs that they would like to apply for.
  • Users can "like" and "congratulate" each other's updates and new employments.
  • Users can see who has visited their profile page.

The "gated-access approach" (where contact with any professional requires either an existing relationship, or the intervention of a contact of theirs) is intended to build trust among the service's users. LinkedIn participates in the EU's International Safe Harbor Privacy Principles.[65]

Security and technology

In June 2012, cryptographic hashes of approximately 6.4 million LinkedIn user passwords were stolen by hackers who then published the stolen hashes online.[66] This action is known as the 2012 LinkedIn hack. In response to the incident, LinkedIn asked its users to change their passwords. Security experts criticized LinkedIn for not salting their password file and for using a single iteration of SHA-1.[67]

On May 31, 2013 LinkedIn added two-factor authentication, an important security enhancement for preventing hackers from gaining access to accounts.[68]

To handle the large volume of emails sent to its users every day with notifications for messages, profile views, important happenings in their network, and other things, LinkedIn uses the Momentum email platform from Message Systems.[69]

Applications

In October 2008, LinkedIn enabled an "applications platform" that allows other online services to be embedded within a member's profile page. Among the initial applications were an Amazon Reading List that allows LinkedIn members to display books they are reading, a connection to Tripit, and a Six Apart, WordPress and TypePad application that allows members to display their latest blog postings within their LinkedIn profile.[70]

In November 2010, LinkedIn allowed businesses to list products and services on company profile pages; it also permitted LinkedIn members to "recommend" products and services and write reviews.[71]

Mobile

A mobile version of the site was launched in February 2008, which gives access to a reduced feature set over a mobile phone. The mobile service is available in six languages: Chinese, English, French, German, Japanese and Spanish.[72]

In January 2011, LinkedIn acquired CardMunch, a mobile app maker that scans business cards and converts into contacts.[73] In June 2013, CardMunch was noted as an available LinkedIn app.[11] In August 2011, LinkedIn revamped its mobile applications on the iPhone, Android and HTML5. Mobile page views of the application have increased roughly 400% year over year according to CEO Jeff Weiner.[74]

In October 2013, LinkedIn announced a service for iPhone users called "Intro", which inserts a thumbnail of a person's LinkedIn profile in correspondence with that person when reading mail messages in the native iOS Mail program.[75] This is accomplished by re-routing all emails from and to the iPhone through LinkedIn servers, which security firm Bishop Fox asserts has serious privacy implications, violates many organizations' security policies, and resembles a man-in-the-middle attack.[76][77]

Groups

LinkedIn also supports the formation of interest groups, and as of March 29, 2012 there are 1,248,019 such groups whose membership varies from 1 to 744,662.[78][79] The majority of the largest groups are employment related, although a very wide range of topics are covered mainly around professional and career issues, and there are currently 128,000 groups for both academic and corporate alumni.

Groups support a limited form of discussion area, moderated by the group owners and managers.[80] Since groups offer the ability to reach a wide audience without so easily falling foul of anti-spam solutions, there is a constant stream of spam postings, and there now exist a range of firms who offer a spamming service for this very purpose. LinkedIn has devised a few mechanisms to reduce the volume of spam,[81] but recently took the decision to remove the ability of group owners to inspect the email address of new members in order to determine if they were spammers. Groups also keep their members informed through emails with updates to the group, including most talked about discussions within your professional circles.[78][82]

Groups may be private, accessible to members only or may be open to Internet users in general to read, though they must join in order to post messages.

In December 2011, LinkedIn announced that they are rolling out polls to groups.[83]

In November 2013, LinkedIn announced the addition of Showcase Pages to the platform.[84] In 2014, LinkedIn announced they were going to be removing Product and Services Pages[85] paving the way for a greater focus on Showcase Pages[86]

Job listings

LinkedIn allows users to research companies with which they may be interested in working. When typing the name of a given company in the search box, statistics about the company are provided. These may include the ratio of female to male employees, the percentage of the most common titles/positions held within the company, the location of the company's headquarters and offices, or a list of present and former employees.

In July 2011, LinkedIn launched a new feature allowing companies to include an "Apply with LinkedIn" button on job listing pages.[87] The new plugin will allow potential employees to apply for positions using their LinkedIn profiles as resumes. All applications will also be saved under a "Saved Jobs" tab.[87]

Online Recruiting

Job recruiters, head hunters, and personnel HR are increasingly using LinkedIn as a source for finding potential candidates. By using the Advanced search tools, recruiters can find members matching their specific key words with a click of a button. They then can reach out to those members by sending a request to connect or by sending InMail about a specific job opportunity he or she may have. Recruiters also often join industry based groups on LinkedIn to create connections with professionals in that line of business.[88]

Skills

From September 2012, LinkedIn allows users to endorse each other's skills. This feature also allows users to efficiently provide commentary on other users profiles – network building is reinforced. However, there is no way of flagging anything other than positive content.[89]

LinkedIn solicits endorsements based on algorithms that generate skills members might have. Members cannot opt out of such solicitations, with the result that it sometimes appears that a member is soliciting an endorsement for a non-existent skill.[90]

Publishing Platform

LinkedIn continues to add different services to its platform to expand the ways that people use it. On May 7, 2015, LinkedIn added an analytics tool to its publishing platform. The tool allows authors to better track traffic that their posts receive.[91]

Influencers

The LinkedIn Influencers program launched in October 2012 and brings together 300+ of the world's top thought leaders to share their professional insights with LinkedIn's 259 million members. Influencer is an invite-only program that features notable leaders from a vast range of industries including Richard Branson, Narendra Modi, Arianna Huffington, Greg McKeown, Rahm Emanuel, Jamie Dimon, Martha Stewart, Deepak Chopra, Jack Welch, and Bill Gates.[92][93]

Advertising and for-pay research

In mid-2008, LinkedIn launched LinkedIn DirectAds as a form of sponsored advertising.[94]

In October 2008, LinkedIn revealed plans to open its social network of 30 million professionals globally as a potential sample for business-to-business research. It is testing a potential social network revenue model - research that to some appears more promising than advertising.[95]

On July 23, 2013, LinkedIn announced their Sponsored Updates ad service. Individuals and companies can now pay a fee to have LinkedIn sponsor their content and spread it to their user base. This is a common way for social media sites such as LinkedIn to generate revenue.[96]

Future plans

Economic graph

Inspired by Facebook's "social graph", LinkedIn CEO Jeff Weiner set a goal in 2012 to create an "economic graph" within a decade.[97] The goal is to create a comprehensive digital map of the world economy and the connections within it.[98] The economic graph will be built on the company's current platform with data nodes including companies, jobs, skills, volunteer opportunities, educational institutions, and content.[99][100][101] They hope to include all the job listings in the world, all the skills required to get those jobs, all the professionals who could fill them, and all the companies (nonprofit and for-profit) at which they work.[99] The ultimate goal is to make the world economy and job market more efficient through increased transparency.[97]

In June 2014, the company announced its "Galene" search architecture to give users access to the economic graph's data with more thorough filtering of data, via user searches like "Engineers with Hadoop experience in Brazil."[102][103]

LinkedIn has used economic graph data to research several topics on the job market, including popular destination cities of recent college graduates,[104] areas with high concentrations of technology skills,[105] and common career transitions.[106] LinkedIn provided the City of New York with data from economic graph showing “in-demand" tech skills for the city's "Tech Talent Pipeline" project.[107] Similar data will be provided to a technology training project announced by President Obama in March 2015.[108]

Dropped features

In January 2013, LinkedIn dropped support for LinkedIn Answers, and cited a new 'focus on development of new and more engaging ways to share and discuss professional topics across LinkedIn' as the reason for the retirement of the feature. The feature had been launched in 2007, and allowed users to post question to their network and allowed users to rank answers.[109]

Business units

Lua error in package.lua at line 80: module 'strict' not found. LinkedIn derives its revenues from three business divisions:

Talent Solutions: Recruiters and corporations pay for:

  • Branded corporate page on LinkedIn, complete with careers section.
  • Pay per click-through Job ads that are targeted to LinkedIn users who match the job profile.
  • Access to the database of LinkedIn users and resumes.

Marketing Solutions:

  • LinkedIn advertisers pay for pay per click-through targeted ads.

Premium Subscriptions: LinkedIn users pay for:

  • LinkedIn Business for business users
  • LinkedIn Talent for recruiters
  • LinkedIn JobSeeker for LinkedIn members looking for a job
  • LinkedIn Sales for Sales Professionals.

Some elements of the various subscription services are also on a pay per use basis like InMail.

Reception

LinkedIn has been described by online trade publication TechRepublic as having "become the de facto tool for professional networking".[110] LinkedIn has also been praised for its usefulness in fostering business relationships.[111] "LinkedIn is, far and away, the most advantageous social networking tool available to job seekers and business professionals today," according to Forbes.[112] The law suit was eventually settled in 2015 in favor of LinkedIn members.[58]

LinkedIn has also received criticism, primarily regarding e-mail address mining and auto-update.

  • The sign up process includes a step for entering your email password (there is an opt-out feature). LinkedIn will then offer to send out contact invitations to all members in your address book or that you have had email conversation with. When the member's email address book is opened it is opened with all email addresses selected and the member is advised invitations will be sent to "selected" email addresses, or to all. Up to 1500 invitations can then be sent out in one click, with no possibility to undo or withdraw them. LinkedIn was sued for sending out another two follow-up invitations to each contact from members to link to friends who had ignored the initial, authorized, invitation. In November 2014, LinkedIn lost a motion to dismiss the lawsuit, in a ruling that the invitations were advertisements not broadly protected by free speech rights that would otherwise permit use of people's names and images without authorization.[113][114][115][116]
  • Changing the description below a member's name is seen as a change in a job title, even if it is just a wording change or even a change to "unemployed". Unless a member opts to "turn off activity updates", an update is sent to all of that person's contacts, telling them to congratulate the member on the "new job".[117]
  • The feature that allows LinkedIn members to "endorse" each other's skills and experience has been criticized as meaningless, since the endorsements are not necessarily accurate or given by people who have familiarity with the member's skills.[118]

International restrictions

In 2009, Syrian users reported that LinkedIn server stopped accepting connections originating from IP addresses assigned to Syria. The company's customer support stated that services provided by them are subject to US export and re-export control laws and regulations and "As such, and as a matter of corporate policy, we do not allow member accounts or access to our site from Cuba, Iran, North Korea, Sudan, or Syria."[119]

In February 2011, it was reported that LinkedIn was being blocked in China after calls for a "Jasmine Revolution". It was speculated to have been blocked because it is an easy way for dissidents to access Twitter, which had been blocked previously.[120] After a day of being blocked, LinkedIn access was restored in China.[121]

In February 2014, LinkedIn launched its Simplified Chinese language version named "领英" (pinyin: Lǐngyīng; literally: "leading elite"), officially extending their service in China.[122][123] LinkedIn CEO Jeff Weiner acknowledged in a blog post that they would have to censor some of the content that users post on its website in order to comply with Chinese rules, but he also said the benefits of providing its online service to people in China outweighed those concerns.[122][124]

SNA LinkedIn

The Search, Network, and Analytics (SNA) team at LinkedIn has a web site[125] that hosts the open source projects built by the group. Notable among these projects is Project Voldemort,[126] a distributed key-value structured storage system with low-latency similar in purpose to Amazon.com's Dynamo and Google's BigTable.

Surveillance and NSA Program

In the 2013 global surveillance disclosures, documents released by Edward Snowden revealed that British GCHQ infiltrated the Belgacom network by luring employees to a false LinkedIn page.[127]

See also

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  97. ↑ 97.0 97.1 Steve Kovach for Business Insider. Nov. 27, 2012 Jeff Weiner Just Revealed A Surprising Long-Term Vision For LinkedIn
  98. ↑ Rachel King for ZDNet's Between the Lines. September 9, 2013 LinkedIn's long-term plan? Build the 'world's first economic graph,' says CEO
  99. ↑ 99.0 99.1 Tomio Geron for Forbes. September 9, 2013. Jeff Weiner: LinkedIn Is Building A Massive Global 'Economic Graph'
  100. ↑ Ingrid Lunden for TechCrunch. Jan 15, 2014 LinkedIn Expands Its Jobs Database With A New Volunteer Marketplace For Unpaid Non-Profit Work
  101. ↑ Bill Chappell for NPR's the two-way. August 19, 2013 University Pages: LinkedIn Launches New College Profiles
  102. ↑ Harrison Weber for VentureBeat. June 5, 2014 LinkedIn launches ‘Galene’ search architecture to build the first ‘economic graph’
  103. ↑ Rachel King for ZDNet's Between the Lines. June 5, 2014 LinkedIn plans to reinvent search in order to map its economic graph
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  109. ↑ Todd Wasserman for Mashable. Jan 17, 2013 LinkedIn will pull the plug on LinkedIn Answers, its Quora-like Q&A service, on Jan. 31
  110. ↑ "Five Benefits of LinkedIn for Organizations (and IT Pros) | TechRepublic." Web. May 9, 2011.
  111. ↑ "LinkedIn.com, a business-orientated networking site, can be an ideal way for professionals to present an online profile of themselves ... Unlike social networking sites, [with] LinkedIn you're outlining all your credentials; presenting the professional rather than the personal you. Considering the sheer vastness of the digital space, the potential for building up a solid base of contacts and fostering new business relationships is boundless." O'Sullivan, James (2011), "Make the most of the networking tools that are available", Evening Echo, May 9, 2011. Pg 32. Note that the Evening Echo is located close to the European headquarters of LinkedIn
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  113. ↑ LinkedIn sued over 'hacking' address books to send spam marketing emails, Daily Mail
  114. ↑ LinkedIn to face lawsuit for spamming users' email address books, BetaNews
  115. ↑ LinkedIn is “breaking into” user emails, spamming contacts – lawsuit, Gigaom.com
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