Social Media and Social Networking

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LinkedIn Confronts Recession, Emerges Winner

Posted by Vaibhav Kalamdani on March 25, 2009

linkedin-logoThe global meltdown has rattled many companies already, and is continuing its juggernaut even today. However, there are also examples of companies who have withstood the mighty force of recession and managed to make profits. One such example is the popular professional networking site ‘LinkedIn’.

At the time when Lehman Brothers was undergoing bankruptcy proceedings, the activity from its employees and ex-workers on LinkedIn increased 315 percent from August to September last year, according to news released by CNNMoney.com. The site also states Detroit as LinkedIn’s fastest growing region, and mentions that the overall traffic to the business social networking site doubled from 3.3 million users in 2008 to 6.9 million in February this year.

Surviving the recession is a big task, and generating profits at the same time is even more challenging. Though social networks like Facebook, MySpace and Twitter have been successful to survive the heat, they haven’t been able to generate profits as per their desire. On the other hand, LinkedIn not only survived, but also cashed in revenues during such a crunch situation.

LinkedIn, which enjoys a billion dollar valuation today, has a huge number of user-base seeking to enhance their professional career. There are millions of job seekers on LinkedIn, and the number is continuing to grow. However, the most effective way to benefit on LinkedIn is to extend your network and accumulate as many referrals as possible.

There are companies too, who rely on social media tools to recruit potential candidates for available jobs. LinkedIn is a preferred option for many, as it provides some kind of authenticity and accurate information, fulfilling the employers’ requirement.

The growing popularity, has therefore, encouraged LinkedIn to introduce a new management team to experiment with innovate ways to generate cash flows. Besides traditional advertising and job postings, LinkedIn provides users with an option to go for premium subscriptions, with advanced service offerings. It also licenses its software to firms for internal recruitment purposes.

The professional networking site, which is supposedly seeing a new user every second, may also not be popular or ideal for many users, in comparison to other social networking sites. However, one cannot hide the fact that it is growing stronger, and becoming a vital source for both employees as well as employers.

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