Search Trends - Search Engine Marketing

Current news and events in the world of search engines and search marketing. Includes links and commentary on current search engine events.

Monday, October 25, 2004

Networking site LinkedIn causes buzz -- but can it be profitable?

I read an interesting article today that talks about the new social networking site, LinkedIn will be able to be profitable. I read another article a few days back in which the founders (who happen to come from eBay) say they plan to apply the ebay business model to LinkedIn. The idea being that a few "power users" will account for the bulk of the company's revenue. In the case of LinkedIn, those power users are people like recruiters who are willing to pay a premium for access to the LinkedIn network database. I have a hard time believing this will be the next eBay, but I can definitely see it reaching profitability through ad revenue and premium services. Based on the founders' past success and the current growth of the LinkedIn network, it seems to be on the right track.

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