Do you want to know how How LinkedIn became a success in the social media world? A de-facto platform for all professionals in the corporate world, LinkedIn has never been as popular as its counterparts. Started as a small blip in the social networking arena, LinkedIn rapidly attracted millions of users and has today worked up to become the number 1 platform for linking professionals globally.
LinkedIn was launched during the era of an ever-increasing craze for social networking. The small company rooted in Mountain View, California had fierce competition awaiting in the market. The road to becoming a social networking unicorn for LinkedIn traces back to 1993 when Reid Hoffman, while studying at Oxford thought of starting a software company. His idea got a form when Hoffman officially launched the site ‘LinkedIn’ on May 5, 2003. LinkedIn’s founders were Reid Hoffman, Allen Blue, Konstantin Guericke, Eric Ly, and Jean-Luc Vaillant. Today LinkedIn is a super success story with revenue of USD 6.8 billion and about 16,000 employees across 33 offices worldwide.
It’s a strategy for business –A masterstroke that the founders of LinkedIn hit was the unconventional user base they sought to draw – those looking for professional development and in search of a new way to conduct business.
One of the first challenges that the company set itself to overcome was how it could hit a million users. Chris Saccheri, former Director of Web Development, LinkedIn states that in the first week, the service had 2,500 users, which grew to 6,000 after the first month. Within six months, there were 37,000 users. Two years after launching, LinkedIn had more than 1.7 million professionals signed up.
- As a part of generating revenue, LinkedIn began offering subscription programs that provided users with enhanced communications and better search features. Another pathway for revenue was online job listings with the initiating of LinkedIn Jobs. As per records, 2013 Quarter 1 revenue for LinkedIn stood at $325 million which comprised of – Premium Subscriptions – 20% Marketing Solutions – 23% Talent Solutions – 57%
In 2011 LinkedIn got listed on the New York Stock Exchange @ $45 per share. It broke all records on the first day of listing wherein investors rejoiced the share price soaring up by 84%. As the company went public, the valuation rose to $1.575 billion. Global demographics of LinkedIn users have astonishing figures – US 167 million+, India 64 million+, China 49 million+, Brazil 41 million+, and Great Britain 28 million.
A comparison brings to light that Facebook and Instagram have approximately 2.38 billion and 1 billion users respectively. On the other hand, LinkedIn has a user base of nearly 706 million spanning 200 countries. However, LinkedIn ranks high on social connection wavelength as it provides a trusted platform and caters to a quality audience like professional clientele or those with a deep interest in the business.
In the 2019 fiscal year, LinkedIn brought in $6.8 billion worth of revenue as compared to its competitors.
During the same period, Instagram earned $20 billion, Facebook recorded $70.697 billion and YouTube grossed $15.1 billion.The future LinkedIn has shown steady growth since day one with the current rate at two new user accounts being created per second and that’s more than one million new users each week joining. As updates keep pouring in, LinkedIn continues to grow and it has become the default lookup for all serious business professionals. What is the road ahead for LinkedIn, who knows! But it is surely going to keep its users engaged by providing a seamless networking experience.