Photo: Randy Stewart
People always want to know how anybody is ever going to make money in social media.Nevermind that Facebook revenues are well north of $2 billion on an annual basis – the question keeps getting asked.
Back in 2008, when one reporter asked Twitter investor Fred Wilson how that company would do it, Fred flipped out, and called it “the stupidest question in the world.”
He said, “It’s like “How was Google going to make money?”
Later, Fred apologized. But he maintained that Twitter and the rest of the very popular social media companies will figure out a way to make big bucks.
It was a good day for Fred and his cohorts yesterday when professional social network LinkedIn finally filed its S-1 to go public.
Reading it, we learned that LinkedIn generated about $200 million to $220 million in revenue last year. Almost half of that came from products LinkedIn sells to recruiters. Another third came from ads. A quarter came from premium subscriptions.
“The you-can’t-make-money-on-the-social-web crowd is going to look really stupid in a few years,” says Fred.