Forbes has LinkedIn CEO Jeff Weiner on the cover—but the professional social network’s business model is the real hero of the story.
Here are some of the amazing statistics Forbes’ George Anders reports:
- LinkedIn users spend an average of 18 minutes a month on the site. Facebook users spend 6.4 hours a month.
- But LinkedIn gets $1.30 in revenue for every hour those users spend on site. Facebook: 6.2 cents.
- Anders describes LinkedIn’s most expensive product offering, LinkedIn Recruiter, as a “Bloomberg terminal” for talent scouts. It costs up to $8,200 a year per “seat,” or user licence.
- Adobe, a big LinkedIn customer, has 70 seats. At list prices, that’s about half a million in revenue a year from a single client.
- LinkedIn’s top salespeople make as much as $400,000 a year selling Recruiter.
- LinkedIn spends 33 per cent of revenue on sales and marketing.
- LinkedIn’s profits are expected to double this year to $70 million.
Forbes didn’t mention this, but the group which develops LinkedIn’s amazing money-making products is called “Team Money” inside the company. And LinkedIn’s sales force is growing so explosively that the company has rented space in Sunnyvale, one suburb over from its Mountain View headquarters, which is already packed to the gills.
Update: LinkedIn’s monetization-products team, not its sales force, is called “Team Money.” We’ve corrected the story to reflect that.