Last November we asked you, "In 6 months time, will you have more business contacts in Facebook than LinkedIn?" 62% of you said LinkedIn, and only about a quarter chose Facebook. It's now been about six months, so how do the two services stack up? Has Facebook caught up with LinkedIn for Facebook? Will it ever? And what about Xing?
My personal experience has all been with LinkedIn and that has been very positive:
My experience on Facebook has been light. Recently Dave McClure invited me to connect on on the site -- o that is not a picture of me kneeling in obeisance to a Valley mover and shaker -- and this experience got me thinking about differences/similarities:
I think the case for Facebook rests on all the cool guys entering the workforce who won't use anything else. So, to reach them you gotta be on Facebook. Is that it? Is Facebook a tool to recruit people coming out of college?
As you may have guessed, I am still of the opinion that LinkedIn is the better tool for business.
What do you think?
LinkedIn's value to users is clear; their value as a business, however, is less clear. But that may be due to the fact that they are a private company and so there is not any hard data to go on. Xing, the European alternative to LinkedIn, is public and recently published their quarterly results:
Thats pretty impressive. It would be interesting to see the numbers LinkedIn is probably floating around as various unsubstantiated rumors say that they are looking to:
Which just about covers the strategic options.
USA Today, apparently with a source at LinkedIn, or at least not denied by LinkedIn, says:
"With more than 1 million people joining each month and projected 2008 revenue of $75 million to $100 million, LinkedIn Corp. seems likely to deliver another big payoff for [founder Reid] Hoffman."
That is heady growth, which would make any of the above strategic options viable. But this is a projection. To compare with Xing one would need to see last quarter revenue (about $11.6m for Xing). Take that $11.6m for Xing and multiply by 4 and you get an annual run rate of $46.4m. If they keep up their current 91% growth rate that would put Xing right around where LinkedIn is projecting ($46.4m + 91% = $88.82m). So, as we reported back in March, it is a two horse race for global online business networking. It is possible that Xing has actually got their nose out in front.
As we reported back in December, LinkedIn's key asset is a young and rich demographic (younger than Wall Street Journal, richer than Facebook). That's the key to their business.
What would be most revealing would be the number of paying subscribers. Xing reports that, and Xing is clearly profitable. My concern about LinkedIn as a business is that it is too dependent on advertising.
But then so is Facebook. And the key question asked 6 months ago is will Facebook eat LinkedIn's lunch in the business market or will LinkedIn continue to pull ahead in that key segment. You know what this "suit" thinks (Xing is leading by a whisker, LinkedIn is close behind and looking strong, Facebook just fell at the last jump). What do you think?
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I have been using LinkedIn for about 3 years now, a paid member for about 12 months and started using Facebook about 1 1/2 years ago. Before Facebook got popular, LinkedIn was the only professional networking site and we had a deal with it. Now with Facebook, I am able to see how effective networking can be and came to a conclusion that LinkedIn is pretty useless.
All my tech and business contacts are in Facebook and has become easier to keep the networking on Facebook simply because there spending more time of Facebook. I am not adding any new contacts on LinkedIn as I am adding all of them on Facebook.
LinkedIn claims to increase in new membership but they are not release record of how many active members on the site. A lot of people I know are just signing up out of curiosity and not actively involved on the site. I don't spend time of LinkedIn anymore, in fact, in the last 6 months, i probably logged into LinkedIn about 4-5 times only and that was to copy some names of my contact so that I can connect with them on Facebook.
It looks a little too late for LinkedIn. I personally think they should have sold the company to News Corp. They are far behind in terms of features and seemed like they have been more focused on selling the company as opposed to improving their product.
Posted by: Craig Lu | May 5, 2008 4:14 PMhi bernard:
if i'm your mover & shaker you really need to raise your standards ;)
i think both are actually good for business, altho LinkedIn's tools are more properly designed to work for business usage.
however, i do business where my contacts hangout / prefer -- not just where i prefer. so i'd say ~2/3 of my business networking is on LinkedIn, but a solid 1/3 is on Facebook.
last summer i was a little negative on LinkedIn's prospects due to Facebook's continued growth, but nowadays i think i was wrong about that -- both networks continue to grow, and both are likely to be useful in the long-run (and perhaps even MySpace too, if i were focused on the entertainment / music / video business, or on other verticals more native to that demographic).
all said and done, LinkedIn continues to grow steadily in prominence as the dominant / default place for business-focused networking, even if the audience is a bit more concentrated than either of the other 2 big social networks. i continue to use it as my primary resume / profile site, altho i also update & maintain profiles on Facebook, MySpace, & several other vertically-focused sites as well.
Posted by: dave mcclure | May 5, 2008 4:39 PMWhen you think Facebook you think young.
When you think LinkedIn you think business.
Enough Said...
Live From Las Vegas
Posted by: The Masked Millionaire | May 5, 2008 4:55 PMThe Masked Millionaire
Without question, Linkedin has made more of an contribution
Posted by: JJ | May 5, 2008 6:00 PMFacebook = people you drink with
LinkedIn = people you work with
At least that was the rule more than 6 months ago - now it's 50/50 bet on which will prevail. I've kept Facebook to a very short list of personal acquaintances and keep Linkedin for my more professional contacts.
Posted by: David | May 5, 2008 6:30 PMAlso in the "LinkedIn good for business; Facebook good for friends" camp. I don't see why each needs to address each other's space. These are two very big categories that are very different.
Posted by: pwb | May 5, 2008 7:07 PMLinkedIn is still my preferred business contact platform and I tend to keep facebook more for personal contacts. I would say though that LinkedIn has a huge disadvantage over Facebook: people don't spend time on LinkedIn as they do on Facebook.
So really, LinkedIn is an API away from getting all of its past success chipped away by other value-add services and social networks (including Facebook of course). No wonder LinkedIn's API has been in private beta for quite some time now...
Holding back won't be the answer though. They really need to tackle the problem at the source and find ways to build a stickier platform.
Posted by: Pierre-Loic Assayag | May 5, 2008 8:05 PMI know comparing apples and orange can be a funny game sometimes when there is nothing else to do... you are darn smart dudes tho... don't you realise the question you ask makes absolutely no sense to 99% of the observers & 99,99% of the users of both networks ?
Posted by: Simon | May 5, 2008 8:33 PMI am with Simon. I use both heavily, with almost no overlap.
Posted by: Deepak | May 5, 2008 8:52 PMLinkedIn by a wide margin purely for business networking.
Facebook mainly personal and a bit of business.
If I could only keep one...
LinkedIn
(But that could change...)
Posted by: kayvaan | May 5, 2008 9:06 PMBusiness? I choose LinkedIn, without any doubt. Their target is very clear and I don't have to deal with crappy content.
Posted by: jc | May 5, 2008 9:44 PMThat's true, LinkedIn is more business! But same exists in Facebook as well, the only thing is to use it according to requirements!
Posted by: Qurratulain | May 5, 2008 11:36 PMsix months ago, I thought facebook would have gotten more important by now for business networking; it was growing steadily at that time in my environment (the Netherlands). By now, it seems hardly anyone still uses it besides international social comminication, and we're all back at LinkedIn. It's interesting to note, by the way, that Xing has an insignificant market share here in Holland, it's LinkedIn all the way. Still perhaps due to the lack of localization, most people don't really use it very actively, but it's widely used for staying in touch and 'showing off'.
Posted by: jaap stronks | May 5, 2008 11:39 PMOne more thing: Linkedin isn't the most innovative player in town, but they don't need to be. No reason to start Superpoking my business contacts, plus: it's a kind of network that should be stable.
I personal don't know neither Facebook nor LinkedIn, but i know Xing. It's a highly profitable business platform. Facebook seems more like a mixed community of professional and personal contacts. In Xing, you've got a massiv set of features and an active staff support. Mostlikely, there are only professionals, a lot of jobs to join, discussions to participate and useful people to meet. I can't understand why Xing didn't established itself in the US-market.
Posted by: Stefan | May 6, 2008 12:56 AMWell, it's unfair to comapare facebook and linkedin. Both have difference concept eventhough both are social networking sites...
Posted by: Kevin | May 6, 2008 2:49 AMI recently wiped out all my Facebook groups in order to start over. Most were inactive, the others were not as engaging as other services or blogs I've been using. I've been documenting my experiences in my "personal Facebook saga" series on my blog, too (http://www.ddmcd.com/saga.html).
My linkedin use, always steady, has continued. But comparing just these two services is inappropriate given the complexity of online social networking these days.
I know how to use Linekdin profesisonally, I just haven't figured out how to use Facebook for similar professional purposes.
Posted by: Dennis D. McDonald | May 6, 2008 4:14 AMFacebook? I don't use it. Professionals = LinkedIn.
Posted by: Ponchai | May 6, 2008 5:37 AMI somewhat disagree with the idea of LinkedIn for business, Facebook for friends mainly because I shouldn't have to keep two separate profiles updated (and won't indefinitely). Now that Facebook allows you to group contacts there is no reason not include all your information in one place, and then just filter it for different groups (e.g. friends vs professional contacts).
With the current generation of college grads or recent college grads all on Facebook - I don't see how LinkedIn can compete without offering product differentiation. The network differentiation isn't sustainable...
Posted by: Brad Coffey | May 6, 2008 6:36 AMI think the debate is valid and I personally find myself using LinkedIn to add business contacts and Facebook for all the rest. Nonetheless, I have a few business contacts in my Facebook friends list. The reason for this is that they are people I have a close business relationship with and that I feel somewhat OK with them knowing the more "personal" side of who I am.
That said, I think that when Facebook releases the "list" feature and the privacy/profile control options with it, I will be using Facebook for my professional contacts. I say: wait and see... you never know what Facebook will come up with next. The platform is still in its infancy after all.
Posted by: Elizabeth Wallace [at] One Pica [dotcom] | May 6, 2008 6:38 AMI think the debate is valid and I personally find myself using LinkedIn to add business contacts and Facebook for all the rest. Nonetheless, I have a few business contacts in my Facebook friends list. The reason for this is that they are people I have a close business relationship with and that I feel somewhat OK with them knowing the more "personal" side of who I am.
That said, I think that when Facebook releases the "list" feature and the privacy/profile control options with it, I will be using Facebook for my professional contacts. I say: wait and see... you never know what Facebook will come up with next. The platform is still in its infancy after all.
Posted by: Elizabeth Wallace [at] One Pica [dotcom] | May 6, 2008 6:38 AMI think the debate is valid and I personally find myself using LinkedIn to add business contacts and Facebook for all the rest. Nonetheless, I have a few business contacts in my Facebook friends list. The reason for this is that they are people I have a close business relationship with and that I feel somewhat OK with them knowing the more "personal" side of who I am.
That said, I think that when Facebook releases the "list" feature and the privacy/profile control options with it, I will be using Facebook for my professional contacts. I say: wait and see... you never know what Facebook will come up with next. The platform is still in its infancy after all.
Posted by: Elizabeth Wallace - One Pica | May 6, 2008 6:47 AMI think the debate is valid and I personally find myself using LinkedIn to add business contacts and Facebook for all the rest. Nonetheless, I have a few business contacts in my Facebook friends list. The reason for this is that they are people I have a close business relationship with and that I feel somewhat OK with them knowing the more "personal" side of who I am.
That said, I think that when Facebook releases the "list" feature and the privacy/profile control options with it, I will be using Facebook for my professional contacts. I say: wait and see... you never know what Facebook will come up with next. The platform is still in its infancy after all.
Posted by: Elizabeth Wallace - One Pica | May 6, 2008 6:48 AMI think the debate is valid and I personally find myself using LinkedIn to add business contacts and Facebook for all the rest. Nonetheless, I have a few business contacts in my Facebook friends list. The reason for this is that they are people I have a close business relationship with and that I feel somewhat OK with them knowing the more "personal" side of who I am.
That said, I think that when Facebook releases the "list" feature and the privacy/profile control options with it, I will be using Facebook for my professional contacts. I say: wait and see... you never know what Facebook will come up with next. The platform is still in its infancy after all.
Posted by: Elizabeth Wallace - One Pica | May 6, 2008 6:50 AMSorry about the multiple post. The form kept sending back an error. Apologies.
Posted by: Elizabeth Wallace - One Pica | May 6, 2008 6:51 AMAs a regular user of both services, and paid user of LinkedIn, I don't see any evidence of Facebook making a serious attempt to court business users. People do use it for business, but the service is not being built out in any meaningful way to cater to this crowd.
Posted by: Jonathan Goodman | May 6, 2008 8:11 AMI agree with the facebook = friends & linkedIn = business contacts crowd.
I do NOT like the LinkedIn feature where you must know a contact's email address though. I do not spam requests to everyone I may have possibly worked with. Now that I am making contacts via Twitter and other mediums, I do not always know an acquaintance's email address. Why should I have to ask them for their email before sending them a request? More and more, I am meeting young folks (can you tell I'm an oldie with that phrase? ;) who barely use email and prefer to use other networking tools exclusively.
Posted by: K | May 6, 2008 12:08 PMI use both, but prefer Linkedin five to one easy. Honestly, I really don't care to build my Facebook profile much anymore. But Linkedin, I work on it every day now. And as far as job searching, or companies posting for jobs, it's THE place to be.
I've noticed an explosion in the number of people connecting within my network the past month. I'm betting Linkedin passes 30 million users this year, and if it holds of suitors ... could fetch several billion by year's end.
Posted by: Jeff Crites | May 6, 2008 12:29 PMI'm amazed it is even a conversation. Facebook seems to only appeal to the narcissists and those in need of constant external stimulation and validation. I mean pokeing? Someone needs to write a facebook app where if somebody pokes you, you automatically punch them in the face. Poking isn't a social interaction it's a child whining for attention.But it seems to be the complete basis for facebook. Sure, facebook has other features but they are all duplicated by older and better tools. Even myspace seems more appealing than facebook. Facebook is good for playing scrabble though.
And why would I want to spend all my time in either application? I have work and a life. LinkedIn on the other hand repays an hour or so of time a week with new business contacts, additional work and even new jobs
Posted by: Owen | May 6, 2008 12:30 PMI have 8 friends on Facebook and 48 contacts on LinkedIn. 4 of the Facebook friends are LinkedIn friends.
I've only made one successful "business-type" friend on Facebook. My 7 other friends are people I already knew. I made 18 attempts unsuccessfully there. Since I'm of baby-boomer age, I've found that to be a huge barrier when connecting to a college-age or younger person--male or female.
LinkedIn has been more successful for me. I attribute that to two factors--I am connecting with people I already knew professionally or in a business setting in the past who knew me as a leader and producer AND it's about referrals and your past track record.
It's easy to be a fraudulent/imaginary person and successfully network on Facebook. On LinkedIn that would be very difficult. My 48 LinkedIn connections link me to over 945,000 2nd level connections. Plus business/employment opportunities.
That's how I see it...
Posted by: Charles Kelly | May 6, 2008 11:34 PMLinkedIN 91%
Facebook 9%
Obviously Facebook is still not makeing huge inroads into the 'business world'.
LinkedIN on hte other hand is learning from it's own mistakes (being the market leader), and getting better and better. Even the GUI isn't that boring any more (almost)!
:)
Ivan | www.JobsBlog.ie
Posted by: Ivan | JobsBlog.ie | May 7, 2008 7:46 AMAs a long-time user of both services, there really is no contest in my mind, at least from a recruiting (passive candidate sourcing) perspective. Facebook doesn't let you search too easily on people's profiles, and while you may get a hit here or there, you have to sift through large numbers of dead leads and whatnot to find anything.
People who are on facebook are there primarily as a social thing, and not for business networking. As such, their professional info is usually limited if at all present, and rarely is there any info on their past experience, goals, skills, etc. LinkedIn on the other hand has at least one or two jobs listed per profile, with titles. Most profiles have descriptions of job experience and skills.
There really is no contest.
Posted by: T Brown | May 7, 2008 8:14 AMNice post
I know about facebook, but frankly i just know about Linked In. Thank for the information
Posted by: The Aries | May 8, 2008 7:27 AMLinked in is at this stage defintely more "corporate", which does not mean its better for business. Most business today are quite informal, contacts and social network oriented.
If I am thinking of network a group of insurance or banking colleagues and contacts, I will use Linked In. If we are talking about MLMs, adverrtising, media...probably face book might be better.
Facebook looks like it will progressively become more promotionally oriented....Linked in appears to remain staid and corporatish. I do not know if this will hurt them in the longer run.
In any case I hope the two networks will maintain their own distinguishing features. Other social networks fighting to introduce new widgets and applications and are copying each other.
Soon they will become a mass of grey....proably have to merge or be taken over by soemone like Microsoft or Google.
Posted by: alex har | May 10, 2008 8:18 PMthanks I'll look into those products, never used before:-)
Posted by: mac Flash | May 12, 2008 12:21 AMAt the moment I think it's pretty clear that Facebook is for your personal life and that LinkedIn is for your professional life.
Has anyone been able to successfully leverage these social technologies to generate revenue at their company?
Posted by: Bill | May 12, 2008 8:24 AMWhy are we comparing these two directly? For now, they are quite different... They clearly both have staying power, and both are leaders in their packs...
I have three hundred or so contacts on each. LinkedIn is primarily business (or friends that met me or mingle with me in a business context). It has been incredibly helpful, if for nothing else, research! Facebook is primarily social... but... far more interesting in its functionality (and cluttered). Facebook has potential for (some) business... polling, blogging... but LinkedIn is far better for resume-search (who's who), preparing for business meetings, job seeking and general business networking.
I am quite certain I see multiple revenue lines at LinkedIn. I see subscription (paid) services (and am a subscriber myself). I see ads, yes, which apparently sell for a premium, but I also know their product Recruiter allows corporations to source from the LinkedIn profile pool. The Recruiter play must be worth a pretty penny. I would also imagine as features become more robust (eventually), premium services might become more popular.
HERE IS THE RUB: I believe that Facebook could decide to take on a corporate "Facebook Pro" strategy... in which case it could take over much of LinkedIn's professional lead. This would not be hard to do... or would it?
I saw multiple posts indicating LinkedIn=older and Facebook=young. The stats I've seen don't say so... LinkedIn average age 41 or so... 40% of Facebook users are between the ages of 35-50... Facebook has MORE (70+M vs. LinkedIn's 20+M). LinkedIn is likely growing (exponentially) faster.
I place equal money on both horses... for various reasons. I use LinkedIn far more for business but plan to use Facebook more due to new aps I've discovered (and the fact that many of my business contacts seem to prefer to hang out on LinkedIn). I'd connect with a prospective business parter/client on LinkedIn, but then I'd wait to invite him to Facebook until we actually have established a friendly rapport.
And, if I heard of a good "pro" strategy from Facebook, allowing them to start leveraging premium services, candidate mining, etc., I might shift dollars away from LinkedIn.
Posted by: galaxy | May 13, 2008 2:48 PM