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Glassdoor

LinkedIn should buy Glassdoor

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0_txz5skakg6paaj0gty9ns-cegbn020fgkr3vs-cvj3cf1u4comlwqt9u2e9h74aapycuvvrb3aj6 Arye Schreiber
Save LinkedIn's core revenue; Salvage Glassdoor
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For many users LinkedIn has predominantly taken the form of online CV/Job application management. LinkedIn appears to be better suited to that than any other social networks, and it should invest in dominating that space. At the moment, LinkedIn offers hiring firms plenty of insight into candidates, but has little information going the other way. This creates an asymmetry, as firm are well informed on candidates, but candidates get a re-hash of whatever is on the firm's website and don't really get past the surface.

LinkedIn' Hiring Solutions has become the locomotive of LinkedIn's revenues; it has passed 50% of LinkedIn's revenues and is growing faster than the other revenue streams. But BranchOut, BeKnown and others are leveraging Facebook's considerable numerical advantage over LinkedIn to make Facebook into a formidable jobs board and recruiting tool, and a potential LinkedIn killer. To preserve and grow its revenue base, LinkedIn has to offer more, and fast.
Glassdoor has become a resource for insight into corporations' cultures, customs, ethical makeup, compensation etc. Glassdoor's revenues come from paying customers, who then have control over their reputation on Glassdoor. This Catch-22 will slowly kill Glassdoor: allowing customers to block negative feedback destroys the value to users.
The solution: LinkedIn should acquire Glassdoor, integrate into Hiring Solutions, and remove the editorial rights of paying customers. This will set LinkedIn's Hiring Solutions apart from any other job and career site, enhancing LinkedIn's flagship revenue generator, and saving Glassdoor from the demise it faces. LinkedIn's growth in Europe would provide a platform for growing the influence of Glassdoor beyond the USA.

Author's relationship to LinkedIn:

Customer.
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Rumors last week (May 11) suggested that LinkedIn is considering acquiring Monster (http://bit.ly/J6LIGt). This would obviously increase LI revenue but I'm not sure it will take share from CareerBuilder.com, which then becomes the most credible alternative (and is almost as big as LI-Jobs and Monster combined).
What LinkedIn needs is a competitive edge - something the others cannot offer. Hence the Glassdoor idea, as explained above. LI is running out of time: BranchOut has all the network advantages of LI, and though it is "LI for the other 99%" (i.e. anyone but white-collar executives), it will soon be LI for 100%, as it continues its stellar growth. As TechCrunch put it, "with BranchOut, the goal is to create a mini LinkedIn right on top of Facebook" and with another $25M raised in April 2012 they'll get there. I suspect that before long BranchOut or Monster's BeKnown will replicate Glassdoor and with that will gain another win over LinkedIn. In the end, LI will have to buy Monster for a cool $2B or so, instead of buying a smallish startup.

at 13 May 07:33


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0_sldsnyv_dkqkbodt7co5njshwtlkuwztfbjlnprpnk5nkd7-3ijn4y7-bfau4mmyu6ikmu5bmzw6 Aaron Zucker
Another point to consider
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I agree with Aryeh's assessment above.
I would add one additional point.
Other online job-sites are increasingly becoming less efficient in matching proper candidates to job openings. By allowing LinkedIn a glance at corporate culture it can begin to identify candidates based on a metric that nobody else has access to and which, in my opinion, is more important than a list of skills.
This will prove critical as LinkedIn continues to look for an increase in revenue through added services like recruiting.

Author's relationship to LinkedIn:

Customer.
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Great point. It would be very interesting to think that LinkedIn with Glassdoor could begin to profile not only professionals' technical fit with prospective employers based on qualifications, experience and location, but also based on culture and career goals. Privacy would be a heavy consideration, but they could start administering Myer-Briggs Indicator tests, and match candidates not only to firms, but to specific teams, based on how well a candidate fits not only the culture, but also the specific group or team's culture and needs, and the type of professional that team needs to increase its diversity and effectiveness.

at 23 Jan 20:14


Responses anonymous writer
Misaligned to strategy
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LinkedIn has publicly stated that their strategy is to grow internationally.  Adding a job-board with more content is not even remotely related.    Job boards, job aggregators is a crowded space.  LinkedIn has something that differentiates them and shouldn't lose focus.  

LinkedIn's current strategy regarding job advertisement is to offer better targeting of jobs to individuals (similar to job boards) - based on profiles.  People post and update their profiles in self-interest - rather than reviews which are more altruistic.  LinkedIn also makes significant revenue from their market research offerings - again, quite different from glassdoor.

Just doesn't add up for me..

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Glassdoor

Glassdoor, a jobs and careers community, provides access to millions of job listings as well as gives a free inside look into what it's like to work at more than 150,000 companies in more than 100 countries. Glassdoor enables employees, job seekers, employers and recruiters to simultaneously see for the first time unedited opinions about a company's work environment, along with details on salary, company reviews, interview questions and reviews, office photos, as well as benefits and CEO approval ratings. Glassdoor, founded in 2007 with a public beta version launched in June 2008, has since offered job interview questions and reviews, office photos, career advice as well as enhanced employer profiles. In 2010, Glassdoor launched JobScope, a search technology that helps job seekers more effectively browse job listings and preview what it is really like to work there by providing instant, in-depth details about companies directly from each listing. Headquartered in Sausalito, Calif., Glassdoor was founded by Richard Barton, Robert Hohman and Tim Besse and has raised $22.2 million from its founders, Benchmark Capital, Sutter Hill Ventures and Battery Ventures.

LinkedIn

With over 100 million users representing over 200 countries around the world, LinkedIn is a fast-growing professional networking site that allows members to create business contacts, search for jobs, and find potential clients. Individuals have the ability to create their own professional profile that can be viewed by others in their network, and also view the profiles of their own contacts. Competitors to LinkedIn include sites such as [XING](/company/xing), [Doostang](http://www.crunchbase.com/company/Doostang) and [Ecademy](http://www.crunchbase.com/company/ecademy). Of note, LinkedIn won two Webby awards in 2007 for services and social networking.




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