Here’s What’s Wrong with LinkedIn
In case you missed it, LinkedIn had a really, really bad earnings report recently. How bad? The once highflying stock has plunged to around $100-a-share from $195.
Growth has stalled in a major way. From 114 percent in 2010 to 35 percent in 2015. And the future looks even bleaker, with the company projecting growth in the 20 percent ballpark for 2016.
Ouch! So what the hell is happening. I have a few thoughts.
One social network to rule them all. Facebook is simply sucking all the air our of social media. They’re a bullet train that Google couldn’t even slow. How does LinkedIn stand a chance?
Engagement gap. Let’s by honest, LinkedIn is still a place where recruiters and sales people predominantly play. The Average Joe has little incentive to visit on any regular basis.
Shitty ad platform. Similarly to how Google has sucked out all the search marketing dollars from everyone else, Facebook is doing the same. It also doesn’t help that LinkedIn advertising is significantly more expensive than Facebook. It’s also not very easy to use.
Mobile. Facebook stock started to take-off once they had “figured out mobile.” LinkedIn, in contrast, still seems to be mired in throwing stuff at the wall. Pulse isn’t doing the trick. Their job search app doesn’t set the bar any higher than the competition, and the main app just feels like it’s searching for that sweet spot. What do you mean I can’t upload video, and why aren’t hashtags hot linked?
News as a dedicated app isn’t working. LinkedIn has gone knees deep in the user-generated content game. This might be great for SEO, but it doesn’t seem to work on mobile. Why? As Jason Calacanis recently said, “News apps failed because social networks succeeded. People want to get their news filtered through their social network. It’s just easier and more fun to click on news links your friends are sharing than to open a separate app.”
The algorithm. If you post crap on Facebook, it gets filtered out by their algorithm and no ones sees it. If you share engaging content on Facebook, it rises to the top and is seen by lots of folks. LinkedIn hasn’t figured this out, so too much junk clutters its news feed. Twitter has a similar challenge, and is trying hard to fix it.
Kicking developers in the groin. Having people develop applications on your platform is historically a great thing. Facebook Connect, for example, has enabled apps like Tinder and Words with Friends to thrive. When platforms screw over developers, it rarely turns out well. Similarly to how Twitter has ticked-off developers over the years, so has LinkedIn. As a result, burned developers abandon the platform and head to Facebook or other platforms they trust more.
Jobs. LinkedIn continues to avoid becoming a real place to find jobs. As such, Indeed has filled that void, especially in the apps game. I can’t even search jobs from their main app. There’s also a real opportunity for LinkedIn to be the ATS-of-choice for business large and small, but they seem uninterested.
Don’t get me wrong. LinkedIn isn’t going anywhere anytime soon. As a recruiter recently reminded me, “LinkedIn is a gift from God.” Many sales people I know would agree.
But in the almighty world of Wall Street and the importance of growth, LinkedIn finds itself in quite a pickle. A pickle, it turns out, that’s mostly being enjoyed by Mark Zuckerberg.