Business Networks and the Value of Linkedin

Posted on | June 18, 2008 | 1 Comment

Linked is valued as $ 1 billion. See Om Malik‘s artice (or Techchrunch article). I agree with a valuation methodology based on users (even though its not the best), and don’t put much emphasis on per-subscriber revenue based valuation. However, the detailed analysis should of course look at both.

For me Linkedins’ value can be even much more than 1 billion. Where they lack is a strong marketing campaign where Premium Membership is transformed into a status symbol. Also the heavy users (500+ people) should be granted free access to some kind of a status and free extra services (with their earned status). There should be a schema similar to Credit Card business.

I am sure Linkedin has plans in these areas. I think these things are really hard to implement but doable in right hands. Hopefully, they will reach the right talent to make Linkedin the major player on online networks.

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