LinkedIn Reaches 200 Million Members Globally:
LinkedIn has reached a major milestone this week. The largest social media networking site for professionals has just hit the 200 million user mark globally. LinkedIn went public late in 2011 and unlike recent IPOs from the likes of Angie’s List and Facebook, LinkedIn’s stock has been on a tear lately. The social media sector has been shunned by investors lately because of expected profitability issues but companies like LinkedIn and Yelp are proving them wrong. Even Facebook is back near a six month high although it’s still far below its opening day price.
Growing a user base to 200 million is great but doesn’t mean a company is profitable. Facebook has over 1 billion members but concerns over growth continue to dog the company in a way that hasn’t taken a hold of LinkedIn. LinkedIn has several different streams of revenue and although users don’t return to the site as frequently as a Facebook or Twitter, the company is highly profitable and part of the new wave of social media that is Wall Street friendly from the very beginning.
LinkdedIn’s users base is robust and probably has less ‘fake users’ compared to other social media sites. This makes it even more profitable on a user/cost basis compared to it’s larger counterparts. The lesson here for the social media sector: build it and they will come……. but build it with the intent to make a profit and – it will.