What is the secret that the world's largest business-specific SNS "LinkedIn" continues to grow?

By creating your own profile, you can get contacts from professional networks around the world to find out excellent people and business partners, ask for talent who you want to hire, SNS that can expand your business network "LinkedIn (LinkedIn)"is. As 11 years since launching service in 2003, as of 2014, we have grown to be one of the world's largest business-specific SNS with more than 225 million users, but what kind of Having an excellent strategy, could we continue to grow from foundation to the present?

LinkedIn Growth Engine: The Never Ending Viral Loop - GrowthHackers
http://growthhackers.com/companies/linkedin/

◆ Increase number of users From 20 people a day to the world enterprise


Founder of LinkedInReed HoffmanIn 2002, in order to realize the idea that "experts find connections on the network", Mr. Paypal colleagues who worked as a company founded in 1997 SocialNet.com and Chief Operating Officer were collected .

Mr. Hoffman and his team members said, "Based on the hypothesis that people can become indirect acquaintances with people all over the world if six or more people know their acquaintances"The sixth gap"Theory" · Jointly launched a new business to create expert networks through identity · connection. Mr. Hoffman funded the initial LinkedIn platform with his own assets, and on 5 May 2003 LinkedIn officially released the service.

In the week after that, the number of LinkedIn registrants exceeded 12,500, but there were days when the number of users increased less than 20 on some days, and the growth speed was slower than the management had thought . However, the number of users exceeded 50,000 within four months from the start of service,Sequoia CapitalWe have raised $ 4.7 million (about 476 million yen) as the first large-scale loan round. Succeeded in raising profits in 2006, reaching a publicly traded company in 2011. As of 2014, we have over 225 million users from more than 200 countries and have transformed into companies with market capitalization of 18 billion dollars (about 1.85 trillion yen).

◆ adoption of the theory of sixth order separation


When LinkedIn launched its service in 2003, the online social network specialized in connection and dating with friends, it was not a place to be effective in business. Co-founder Konstantin Gerikke said, "At that time, there are unbalanced relationships between employers and employers, so that people seeking jobs and people seeking work contact with the outside I was talking about the facts at the time, "I had a filter called" Reliable acquaintance "such as introduction before.

"Introduction" from trustworthy people is a powerful tool in searching for jobs, job offers, and business partners, but it is not always the best as it is impossible to get to know the other party without twist. Therefore, LinkedIn built a system that attracted attention to the theory of "the sixth order gap" and can reach the desired person by six introductions. To be precise, this idea was inspired by Andrew Binleich's world first SNS "SixDegrees.com" founded in 1997, Mr. Binrich said "Sixth order gap concept"We have acquired a patent for. Although SixDegrees.com is closed, LinkedIn will have $ 700,000 (about 70 million yen) in 2003Get a patentdoing.

In addition, in order to distinguish it from other major SNSs, LinkedIn users can restrict themselves to private expert networks and establish reliable connectionsGate connection system"Adopted. Since it is possible to get introductions from necessary expert networks while repelling unnecessary invitations and spam, it is said that even popular celebrities are able to register their profile with confidence.

◆ First time difficulties and challenges

ByRichard Parmiter

It's LinkedIn, which seems to be all covered in success, but in 2002Dot com · boomAs the economic downturn was due to the collapse, there were many discussions on whether to start a business or not. Mr. Hoffman says, "I am strongly convinced that starting a business in an economic downturn is a right choice, which makes it difficult to obtain funds, but if you can find a way out of that, it will be your strength I will talk to you.

What started up in 2003 was a bold challenge, and it was said that the concept of LinkedIn was questioned. Co-founder Geelyke said, "LinkedIn just after the start was told as a SNS where teenagers exchange photos with each other, and as a social network-focused SNS it is" too cute " I will. In addition, "Some initial users feel" lacking in the profits of the leaders ", they were the biggest SNS at the timeFriendsterBut if we added the business division we would have died. "

Co-founder Allen Blue said, "If you feel that you have a really good strategy, keep that strategy," he said, keeping focusing without panic at slower growth rates than expected We advised LinkedIn's long-term approach that it is important. As a result, LinkedIn has been able to continue growing beyond difficulties and challenges.

◆ Gaining the traction that focuses on technology


LinkedIn succeeded because one of the reasons for focusing on Silicon Valley's technology, such as employing a person familiar with Silicon Valley upon entrepreneurship, is one reason. In addition, thirteen people related to entrepreneurs hired a total of 112 staff through their network, hiring power players active in dot-com boom from colleagues and friends also contributed to the factors that helped grow It is one of them.

Jack Schwartz, who works for Silicon Valley for 40 years, is one who uses LinkedIn since the time the user was less than 100,000. About LinkedIn's founding "LinkedIn was the best place to discover the knowledge and resources associated with technology." In Silicon Valley LinkedIn, which allows you to maintain personal connections through the platform as it frequently happens that the contact changes due to change in career, LinkedIn explodes widely the connections of people through a business hero with many connections Succeeded.

◆Freemium
Most of the main functions such as creating a profile, communicating with other people, building a network with experts are available on LinkedIn with basic basic accounts. LinkedIn has begun displaying advertisements since 2004 for monetization, now as a premium account, "Business (for general users)"Job Seeker (for job seekers)"Sales Professional (for sales staff)"Recruiter (for individuals and corporate recruiters)"such asPaid account.

◆ Strengthens advantages from weak points

ByMichael Heiss

Elliot Shmukler of LinkedIn, in 2012Growth Hackers Conference, Growth index of LinkedIn's "registration of account by e-mail invitation" and "registration of account from homepage" announced.

· Account registration by mail invitation: 4% (25,000) → 7% (44,000) in 2 years + 19,000 people
· Account registration from website: 40% (50,000) → 50% (63,000) + 13,000 people in 4 months

"It is easier to focus attention on better points than improving weaknesses," Shmukler says, rather than striving to improve the weakness of "email invitation", Mr. Shmukler stated that "registration of accounts from the homepage" It is important to refine so that users who arrive at the website from the user experience are more likely to register more.

◆ Guidelines for Growth Rate: Virality

ByPablo Fernández

Viral MarketingIs a mechanism that allows products to spread from new users through word of mouth and introduction, LinkedIn has established a mechanism that can increase the number of users as well as forming a professional network.

Especially in 2003 I made the utmost effort to extend the virality (viral function), with the goal of "1 million users", how new users can invite other people to invite others I conducted a lot of tests to send it. As a result, "4 pages" is the optimal section for sending invitation messages, and the skip rate of users will rise even if you do not want to increase it much. In addition, in order to make it easier to send invitation e-mails from users' e-mail addresses, we have implemented Outlook contact upload function, Outlook plug-in, etc. In 2012 we also introduce the Gmail plug-in.

Thanks to these efforts, the number of invited emails sent has increased by 30% and the overall number of PVs has increased by 41%.

Public profile


LinkedIn has released the "public profile" function in 2006. Profiles created up to that point were not displayed by organic search, but by setting the public profile function, the profile of LinkedIn is now displayed in the search results simply by searching for the full name. Also, non LinkedIn users can read the LinkedIn profile, and Google's search results have resulted in a number of profiles reaching the top. However, there are restrictions on the profile information displayed in Google search results due to some privacy issues.

◆ Fast turning direction


Mr. Hoffman challenged themselves to achieve the number of users of 1 million, but he said, "I knew that the initial strategy was not adaptable to the latter part of the business model," he said. Initial LinkedIn privacy management was strict and restricted to users' viewable profiles, but by introducing 'search function' it is possible to connect with people you want without lowering the privacy level, or the other LinkedIn account Even if I do not know, I solve the problem quickly according to user's needs, such as introducing "address book upload function" which allows users to connect each other if the address book uploaded to LinkedIn matches.

In this way, LinkedIn has been successful in becoming a large company with more than 225 million users, based on the number of users acquired by 20 people per day. Furthermore, with the rise in the utilization rate of smartphones and tablets, mobile traffic as of February 2014 recorded 41%, and Jeff Red Fern of LinkedIn's mobile product divisionVP"We are becoming a mobile company," he said, aiming for further growth with a focus on the mobile industry in the future.