Is underdog LinkedIn poised to beat flashy Facebook?

Re:Is underdog LinkedIn poised to beat flashy Facebook? by mdasen on Tuesday October 28, 2008 @10:50AM (#346337)

It's true that it's unlikely, but LinkedIn has been able to do something that Facebook hasn't - monetize. Search had been around for a long time, but Google is who made it really profitable. So, there is a chance that this is more like Google and Yahoo circa 2000 where it was underdog Google and flashy Yahoo.

Granted, being able to monetize doesn't matter to your users, but if you keep running through your VC, you eventually can't keep up development at the same pace.

[ Parent | on HN ]

Re:Is underdog LinkedIn poised to beat flashy Facebook? by pg on Tuesday October 28, 2008 @11:38AM (#346384)

Facebook makes money. They seem to have roughly the attitude that Google did around 2000. I.e. they're making some money, could make more if that was their main focus, but their main focus in the short term is to evolve the site.

Not to say that FB is going to be as big as Google. Outliers on that scale may only appear every couple decades. But they have a similar hackerly vibe.

[ Parent | on HN ]

Re:Is underdog LinkedIn poised to beat flashy Facebook? by prakash on Tuesday October 28, 2008 @12:16PM (#346426)

But they have a similar hackerly vibe.

Couldn't the same apply to Linkedin?

In a way all the attention is on facebook, linkedin is getting as much attention as google did in 2000.

[ Parent | on HN ]

Re:Is underdog LinkedIn poised to beat flashy Facebook? by rodmaz on Tuesday October 28, 2008 @12:36PM (#346448)

Let's do an interesting exercise. Facebook has 100 million users. Let's suppose 10% of that user base would be willing to pay a $1.99 to have a premium account (like unlimited number of photo albuns, customizable look&feel etc). That would mean almost $20m dollars monthly revenue, much much larger than their burn-rate. College students don't pay for SMS? Why some of them wouldn't then pay this small amount to Facebook? Sure, this is a very rough estimation based on old subscription-based business model. A product in a free market operates much differently than if you charge US$ $.01. But it only shows that Facebook has many ways to become successfully profitable. They are only being cautious.

[ Parent | on HN ]

Re:Is underdog LinkedIn poised to beat flashy Facebook? by aston on Tuesday October 28, 2008 @03:09PM (#346658)

10% conversion rate would be astronomical for a site like Facebook.

[ Parent | on HN ]

Re:Is underdog LinkedIn poised to beat flashy Facebook? by netcan on Tuesday October 28, 2008 @07:37PM (#346916)

These calculations are sorta dangerous.

Online Newspaper X has over 20m online readers. Most of them have at some point subscribed to print publications @ $200+ per year. If it was a membership site at just $2 per month, wouldn't they be able to keep some readers? 10%? 5%?.

You're not telling me someone making $80k per year would replace the newspaper she reads every day to to save a few cents a read?

Wouldn't people pay to use google? What if it was just $0.50 a month? or $0.01 per search?

The concept that if people use a site, it's worth money, has not proved itself.

[ Parent | on HN ]

Re:Is underdog LinkedIn poised to beat flashy Facebook? by jmatt on Tuesday October 28, 2008 @06:11PM (#346832)

If we are going to look at profitable online communities then look at MMORPGs. It may be outside the realm of facebook and linkedin but there is plenty of profitability to be had beyond myspace clones or even websites.

World of Warcraft takes in 12.99 - 14.99 per user per month and has approximately 10 million active subscribers. Plus additional profits whenever an expansion comes out.

http://www.mmogchart.com/Chart1.html

faq...

http://www.mmogchart.com/faq/

[EDIT: added "per month" to second paragraph, first sentence]

[ Parent | on HN ]

Re:Is underdog LinkedIn poised to beat flashy Facebook? by brm on Tuesday October 28, 2008 @04:31PM (#346731)

it would be far easier to get 1% to pay $10 than 10% to pay $1

[ Parent | on HN ]

Re:Is underdog LinkedIn poised to beat flashy Facebook? by rodmaz on Tuesday October 28, 2008 @05:19PM (#346789)

Yes, I agree! We can debate the conversion rates. My whole point is that simply asking whether Facebook will be ever profitable is a simplistic question. They can become profitable already. The question is that there are probably much better ways to monetize their site and typical audience than requiring subscription. Like PG mentioned, when Google came along, the best way to monetize search engines was to become a "media" portal and pollute browsers with ads and pop-ups.

[ Parent | on HN ]