June 24, 2007

LinkedIn To Open Platform In Response To Facebook

Duncan Riley

50 comments »

LinkedIn is moving to provide API’s that will open its platform to developers in response to Facebook’s rapid growth.

Dan Farber reports LinkedIn CEO Reid Hoffman saying that the move will occur in the next 9 months.

LinkedIn helped define the professional networking space, and yet today it faces the real risk of long term irrelevance as Facebook becomes the social networking platform of choice for professional networkers. Like Nick O’Neil, nearly all my professional networking requests lately have come through Facebook, and although in many ways LinkedIn provides a more focused business networking tool, its niche to Facebook’s broader offering has become its weakness.

LinkedIn isn’t dead yet; decent revenue and around $26million in funding means that LinkedIn will remain a formidable player for the immediate future. The problem LinkedIn faces is a market suffering from too many social networking options; Facebook offers a one stop shop that for many is becoming their main and in some cases their only choice in social networks. LinkedIn must evolve to compete, the move to open their platform is a definite step in the right direction.

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Comments

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  1. dale

    LinkedIn is not user friendly.

  2. Rodney Rumford

    While they are going to open it up to developers; it still does not address the bigger issue: facebook is better.

    Here is how you can get all of your linked in contacts over to facebook…
    http://facereviews.com/2007/06.....kedin-goup

  3. judo

    Smacks of desparation when they announce an API available in 9 months, wow that is a long time in internet-land. I doubt the total development time for the API is much longer than 9 months.

    I wonder who this announcement is aimed at… Developers are unlikely to have much interest in an API unless they can get their hands on it. Could it be targetted at investors? perhaps to convince a doubters of the site’s potential…

  4. Jon Wu

    Being second is lame. Also, taking 9 months to release this API is a total disaster. I was expecting to read “9 days” to be honest.

  5. bubbatex

    I am glad to see LinkedIn trying to improve. As for Facebook and the comments above, why is it everytime I Google a business person, I see a LinkedIn profile and not a Facebook profile? I still believe LinkedIn is the leader in business connections.

  6. john

    I disagree that facebook is better. My LinkedIn account is my only “pure” social network. I have no problems rejecting any connection requests, and I have rejected some on the basis that I don’t feel comfortable recommending or asking for references through those connections.

    I have never gotten any random connection requests on LinkedIn, yet on Facebook everyone in the planet seems to want to be my ‘friend’. I’ll leave Facebook for friends, and LinkedIn for business, and if the two overlap in some cases, that’s fine by me. Communications on Facebook is more party, and LinkedIn is more professional work.

    Good for LinkedIn.

  7. David

    “it faces the real risk of long term irrelevance as Facebook becomes the social networking platform of choice for professional networkers.”

    I find this very hard to believe. I have never seen anything remotely professional on Facebook. Facebook is all goofy kids stuff.

  8. Austin Cassidy

    What kind of applications would work for LinkedIn? These facebook apps have been mostly nonsense music players, toy widget gizmos, and other noise. I can’t imagine how it’d work for LinkedIn. Do I need a widget that allows me to create a gallery of my coolest ties? Or a place for business contacts to learn what songs I like to listen to?

  9. Sherif

    I think LinkedIn have lost it. To make someone pay for ‘priemum’ social networking was a poor choice.

    I signed up to my Linked In account and the fact that they want to charge me to meet people is a joke when you compare it to all the other social networking sites.

    I really think they have made some poor decisions on how they monotize on their product - this has been why Facebook has been so sucessfull. If facebook introduces a feature to make it for work/employee/employer connections it would kill LinkedIn - I hope it does to!

  10. Rich

    I don’t get this article at all… Facebook and LinkedIn are nothing alike, and don’t compete?? LinkedIn is about finding jobs/employees and having references for services - and Facebook is about meeting new people, socializing and to be frank uploading “non-professional” info/photos, etc.

    How are these two related at all??? Just because they are social networks?

    Lets be honest - 95% of facebook is pics of people getting wasted, and talking about their favorite music (not exactly a place to do business) - and LinkedIN is a database of resumes - there is nothing “social” about it.

  11. Stephen Sclafani

    Rich,

    To understand the article it helps to know that Facebook has had a growth spurt in the last month of professional types who used to use LinkedIn.

  12. Stephen Sclafani

    Point being, the phenomenon that Duncan explains in the article is a recent trend and LinkedIn’s announcement of an API is a reaction to it.

  13. Marshall Kirkpatrick

    Fwiw, I asked panelists at the Accel event in May about user control of data in the SNS world - Facebook and LinkedIn reps were the only ones who gave anything like a satisfactory answer.  Two other companies present basically said “I’m not familiar with wtf you’re talking about.”  I’m not surprised to see LinkedIn moving this direction.  I interact with people all the time on LinkedIn, I think there’s plenty of potential there and the cynicism of some commenters here is unwarranted. :)

  14. Roman

    Linked In is for business, Facebook is for college students. 2 different audiences, 2 different needs. This API doesn’t matter.

  15. Jason

    Very interesting idea….http://news.com.com/8301-10784_3-9734034-7.html?tag=head

  16. bob cobb

    I guess linkedin feels like because they are purely business related that they can charge for something that should be free. Thats what turns me off from it. I have no ambition to use facebook for business related stuff though.

  17. Joel Price

    I think LinkedIn is on a upswing, over the last month, I have seen allot of actively. I have not used Facebook and just can’t find the time to invest in another social network.

  18. david hyman

    there will always be a multitude of social networks that caters to the unique demands of their respective audiences.

    one network does not work for everything. communication platforms are designed specifically for their intended purposes. open-platform facebook does not replace all networks. just the more generic ones potentially.

  19. Vincent Wright

    I agree with Bubbatex and John. I see them as two different types of platforms. One more social (Facebook) and the other more business-centric (Linkedin)

    Now, Sherif, I’m not quite sure why you’d want Facebook to do Linkedin in but, I think this level of push and pull competition is good for end users like me.

    Besides, if My Space were to introduce “a feature to make it for work/employee/employer connections it would kill LinkedIn AND Facebook. (I think! :-))

    I do think that Linkedin has brought in some good people recently but, in my humble opinion, if they really want to pick up steam, they’d bring back at least one person who left in the past few months…at whatever cost. But that’s another story!

    Thanks!

  20. Robert Dewey

    My thoughts from R/WW:

    Ever since reading Tim O’Reilly’s post, I’m convinced that the biggest social network exists right under our fingertips. It’s not Facebook or LinkedIn… it’s existing communication.

    All social networks require their users to have an e-mail address, but then limit you to only adding those who are within the service. Why is it that I can only add those who already exist within the service? Is it fair to my contacts in LinkedIn that I cannot add an important CEO just because he doesn’t exist within the service… because he’s too busy to register, build a profile, and maintain it?

    Social networks, as we know them, cannot scale to the size that e-mail has. In a closed network, it just isn’t possible. Imagine the response if Gmail said “sorry guys, you can now only send and receive messages from the Gmail domain.”

    So why not base a service around something that 1.2 billion people actively use? In other words, let me upload contacts, let me tag them, and let them continue to build the social grid. Not only does that enable me to have more efficient communication, but it’s scalable because it’s built on the backbone of e-mail (or other communication). The network already exists - someone just needs to make it social.Ever since reading Tim O’Reilly’s post, I’m convinced that the biggest social network exists right under our fingertips. It’s not Facebook or LinkedIn… it’s existing communication.

    All social networks require their users to have an e-mail address, but then limit you to only adding those who are within the service. Why is it that I can only add those who already exist within the service? Is it fair to my contacts in LinkedIn that I cannot add an important CEO just because he doesn’t exist within the service… because he’s too busy to register, build a profile, and maintain it?

    Social networks, as we know them, cannot scale to the size that e-mail has. In a closed network, it just isn’t possible. Imagine the response if Gmail said “sorry guys, you can now only send and receive messages from the Gmail domain.”

    So why not base a service around something that 1.2 billion people actively use? In other words, let me upload contacts, let me tag them, and let them continue to build the social grid. Not only does that enable me to have more efficient communication, but it’s scalable because it’s built on the backbone of e-mail (or other communication). The network already exists - someone just needs to make it social.

  21. Robert Dewey

    Double post within a post… ack… someone fix it ;-)

  22. Alex Rudloff

    Everyone talking about how the two services don’t compete is missing the fact that students become alumni.

    Smart move by LinkedIn.

  23. Jason Alba

    I am really interested in this for two reason.

    First, I’m dying for an API to interface my website (which is more on the personal CRM side (with a strong emphasis on career management)). The ability to create a network and have connections on LinkedIn, and then manage information around those relationships (and other relationships that you form outside of LinkedIn) is huge, and allows us to do what career experts say we should do. Not to mention integration with other non-networking (but career) things.

    Second, I’m writing a book to be published in the next couple of months called “I’m on LinkedIn - Now What??” I find it very interesting to see comments like those here about how LinkedIn is falling behind, competition with FaceBook, etc. I see LinkedIn as it’s own thing, with it’s own purpose, which is quite different than FaceBook. Is it better or worse? It depends on *what* you are trying to do!! Want to have communication within the community environment? Use the WALL on FaceBook. Want to search for a CEO at xyz company, and see how you are related? Use LinkedIn. Comparing the two as apples-to-apples isn’t really fair, although it is cool that progress at FaceBook is *forcing* LinkedIn to open up. (my point is, I think too many people don’t understand LinkedIn as the tool it is designed to be… hence my brilliant title :p)

    This is a great move. I agree that 9 months seems like a very long time. However, what do they have on their plate right now? Maybe a lot. What redesign do they need to do to the architecture? Maybe a lot. It’s better to do this now, and do it right, than to do a quick band-aid in 9 days. I disagree that LinkedIn is a social network (much less a pure social network). But it is a great tool. For tips on getting more out of LinkedIn I’d start at http://www.LinkedIntelligence.com.

    Jason Alba
    CEO - JibberJobber.com
    … anxious to plug into various APIs at LinkedIn, to help your career …

  24. dave mcclure

    news is nice, but beta is better… as in: better hurry it up.

    waaaaaaaaaaay overdue.

  25. pffft

    LinkedIn is definitely currently the leading business networking SNS. Facebook and LinkedIn are positioned differently. Just compare Facebook and LinkedIn profiles. They emphasize completely different things. LinkedIn is a very FOCUSED SNS — a niche player. I think Facebook is a little more general.

    LinkedIn is “social” in a very specific sense — professional social network.

    Facebook is “social” in the party sense.

    They should merge and have the LInkedIn interface be the “business networking” part of your life and the Facebook interface be the “personal networking” part of your life but have the two integrate and overlap.

    Some naming options:

    Linkbook
    FacedIn
    LinkedFaceInBook
    FaceLinkedInBook

    ha ha - sorry - i should go to bed

  26. Andrew Kaplan

    Facebook’s core audience is a young demographic and as sites rely more on advertising, they can charge a premium for the 18 to 34 demographic and relies more on the social aspects.

    LinkedIn I see more in the 30 - 55 demographic where people have settled into their careers and have built their employment history.

    The open network API’s are always a good idea. New ideas for improving the core product come from watching the development of add-on products. At that point, LinkedIn can either buy the add-on company, license the technology or build their own solution.

    One of the niches that will grow from this are companies and sites to consolidate all your network profiles into one place on the web. With open API’s this now may be possible to update Facebook and LinkedIn simultaneously with your core contact info.

    Andrew Kaplan
    eWarrior LLC and MediaMensch Networks
    http://www.mediamensch.com
    http://www.ewarrior.com

  27. Neil

    Great - let’s get working on some LinkedIn apps that’ll let us do everything that was built into Facebook from the offset;

    - Communicating, but for free!
    - Communicating, but without an agenda…
    - Sharing files!
    - One, or maybe, just maybe, more than one profile photo!
    - A ’social-network centric user-base’ generator! I.e. An app that fills LinkedIn with users that WANT to spend time in a social networking service!

    I’ll do the interface design, who wants in on the backend to these babies?

  28. Alex

    Duncan,

    Very well written. Short and to the point.

  29. jim peake

    What I like a lot about LinkedIn is the ability to send out e-mail to an entire Outlook address book. That said I don’t wish to send out more e-mail again to for another social networking site. It seems that there are invites every day to new social networking sites and if they are going to add value they will want to be in very specific niches i.e Dogster, Catster.

  30. Amy Wilsch

    I’m sorry - I disagree that “everyone” is on Facebook. I don’t run in the young, hip tech crowds, but I definitely operate in a highly professional environment that is mostly tech but also very broad beyond that. I get very few FB requests. I get plenty of LI ones.

    I don’t really use LI but I more decisively don’t use Facebook.

    I for one am not jumping on this insanity train that is the cult of FB that silicon valley is riding so high on these days. FB has a huge issue to overcome - that its thought of as for and by college students. I’m kind of disappointed to see TC drinking the FB koolaid too.

  31. ChandraBajpai

    I’ve got a great idea for a killer application for LinkedIn…so I’ve love to develop for the environment (hint, hint guys at LinkedIn).

    The queston I have is would LinkedIn let users off the site? They could monetize it by charging a fee everytime some left the site….so LinkedIn could be a traffic engine also.

  32. bw

    Although neither my FaceBook or LinkedIn profiles are private (or mutually exclusive, I feel that they both represent two different worlds. In the interest of productivity, I don’t want my work life cluttered by personal stuff. I also want to maintain a bit of a line between the two worlds. I personally welcome the innovations a LinkedIn API may offer its members.

    An interesting addition to the business social networking argument is the Plaxo announcement. I wonder what impact that will have on the biz-social-net space.

  33. bdb

    Could someone please reiterate the fact that these two SNSs address two different target markets? Cause it hasn’t been stated enough by aspiring bloggers yet.

  34. sean savage

    This is bulletproof logic. And it points out a stellar opportunity I’m going to jump on:

    Sean’s Pancake and Engine Syrup. Why shop around for maple syrup and motor oil at different stores, in different bottles? We provide you a one-stop-shop for all your breakfast-sweetening and motor-lubrication needs.

    Sorry Castrol and Aunt Jemima, the game’s clearly over for you.

  35. sean savage

    (Does that satisfy your jones bdb?)

  36. Michael

    The user interface of LinkedIn is terrible…but they will be a dominate player because they are more appealing to a different market than Facebook. Facebook doesn’t have the 30-55 yr old demographic on their site, nor are they targeting them. LinkedIn’s crowd is 30-50 is my best guess. I know at my former company the people using it, were using it for sales leads, not for any type of social networking by any means.

    If Facebook begins to grow their demographic…they will destroy LinkedIn. LinkedIn needs to stop charging for their services. They will soon learn people will not tolerate paying for web services. Hopefully they will learn before it is too late though.

  37. Concrete Stain

    heh - following the steps - of someone - still keeps you behind them….

    - You need to curve out a - more effecient path.

    -RB

  38. Linkedout

    I use linkedin. I do not use FB. I am not interested in FB.

    Instead of opening up the linkedin api, they need to make the “paid” features free. then I would spend more time on linkedin and it would become my SN of choice. This api thing is lame.

  39. Simon Whatley

    LinkedIn needs to differentiate itself from the likes of Facebook and MySpace, not follow it like a sheep. It is a great site for keeping a network of business contacts, not to be sociable with friends. I don’t want business contacts to see my Facebook and there is no point in my Facebook friends seeing my business contacts. The fact that LinkedIn also charges a premium for services that show little benefit to me, will also prevent it’s elevation to website of choice.

  40. Richard

    All the folks I know who do this are building profiles on congoo.com. I think these linked in folks have to rethik their model…whose going to pay to contact someone?

  41. Benjamin

    Thanks for your article. I referenced to it in an article I wrote about the future cooperation between Linkedin and Facebook. Check it out!

    Regards

  42. The Muso

    The crucial issue for me is the disntinction between work and play. Personally I’m keen to keep the two as separate as possible - yes I can have all my contacts in Facebook, but do I want them to see my Fear and Loathing in Las Vegas profile picture or my completely abstarct musings with various random friends? Absolutely not.

    LinkedIn does need to clean up, but until Facebook offers two profiles, I’ll eb surprised if they corner the professional market.

  43. Sim Zacks

    I am very interested in the API. I have a great idea that would fit the LinkedIn networking model very well. Obviously I don’t want to start my own SNS to implement a single function (which wouldn’t succeed in any case).
    LinkedIn might be interested in buying the idea, but I can’t build it until I have the API or it would need to be completely rewritten afterwards.

    9 months is way too long, but this sounds like a knee jerk reaction to something that they should have first announced after already building the platform and then giving it to beta testers immediately after the announcement.