How LinkedIn Functions

LinkedIn is a professional networking platform aimed at business individuals. Unlike platforms like MySpace and Facebook, which focus on social interaction and media sharing, LinkedIn is dedicated to professional growth—job searching, identifying sales leads, and forming business connections.

The rise of online social networking has surged in recent years, especially with the immense success of MySpace and Facebook. In August 2007, MySpace had over 60 million unique visitors, and Facebook drew 19 million, marking an impressive growth rate of 23 percent and 117 percent, respectively, from the previous year [source: Mashable].

Online social networks are websites where individuals create personal profiles, connect with "friends" or "contacts," and build vast networks of relationships. There are over 300 social networking platforms available, covering a wide range of topics such as video-sharing, photo-sharing, social bookmarking, music-sharing, blogging communities, all-purpose social platforms like MySpace, and professional networks like LinkedIn.

LinkedIn was co-founded in May 2003 by Reid Hoffman, Allen Blue, Jean-Luc Vaillant, and Konstantin Guericke. The idea for the platform came from Hoffman and Guericke, two Stanford alumni, who started planning their online professional network in the late 1990s [source: USA Today].

By October 2007, LinkedIn had already gained over 15 million members, making it one of the fastest-growing social networks globally. The site saw a 323 percent increase in traffic from July 2006 to July 2007, solidifying its position as the leading platform for professional networking online [source: Tech Crunch]. Average users tend to have two or three dozen connections, while a few "superusers" have gathered as many as 34,000 connections [source: Entrepreneur].

In this Mytour article, we will dive deep into the various features of LinkedIn and demonstrate how to use them. Additionally, we will examine who uses LinkedIn, what sets it apart from other social networks, and assess whether it truly delivers on its promises.

Let's begin with a detailed, step-by-step guide on how to effectively use LinkedIn.

LinkedIn Profiles

To begin using LinkedIn, you must first sign up and create a profile. During registration, you'll be prompted to provide essential personal details such as your name,

email address, location, current employer, and the name of your college. Then, you'll be asked to fill in more detailed information for your profile page.

A LinkedIn profile functions like a professional résumé, focusing on your career and educational background rather than personal hobbies or favorite movies. To build your profile, start by adding entries for each of your past and current roles, including your job title, employer, industry, dates, and a brief description of your responsibilities.

The education section is filled out in a similar manner. You will create separate entries for each institution you attended after high school, including details such as the school's name, degree obtained, years attended, awards received, and any additional comments you'd like to make. LinkedIn will use this education and employment data later to help you connect with past and present colleagues and classmates.

Your profile’s foundation is built on your work and educational history. Additionally, you can complete a summary, which provides a brief overview of your professional experience and skills, and add a profile photo. There’s also a space to include any Web sites you’re affiliated with, both personal and professional, as well as a section for listing your interests, associated groups, and honors.

Next, let's explore how to find people to add to your network.

LinkedIn Contacts

After completing your LinkedIn profile, the next step is to search for and connect with other members. LinkedIn offers various ways to search for contacts:

If you use Gmail or AOL, simply enter your email address and password, and LinkedIn will automatically identify which of your email contacts are already on the platform. You can also use LinkedIn’s "Find Contacts Wizard" to import contacts from Microsoft Outlook or any other address book software.

After uploading your contacts, you can choose which LinkedIn users you want to invite to join your network. Additionally, this is a good time to invite your non-LinkedIn contacts to create an account and join the platform.

LinkedIn will also use the employment details from your profile to display past and current colleagues who are already members. Like with email contacts, you can pick which colleagues to invite to your network.

Similarly, LinkedIn’s classmate search will show you a list of members who attended the same school or university as you during the same time. You can refine your search to include only those who graduated with your class.

By clicking the "People" section on LinkedIn's website, you can perform either a name search or an advanced search. For a name search, just input a full name or a last name, and LinkedIn will provide a list of all members who match that name.

Advanced search lets you look for LinkedIn members based on multiple criteria: keywords, name, job title, company, location, and industry. This feature can help you identify a valuable connection at a company or even provide an advantage during a job application process.

The next step, after setting up your profile and connecting with familiar faces, is to convert these contacts into meaningful "connections."

LinkedIn Connections

Finding classmates, colleagues, and friends is just the first step. To unlock LinkedIn's full potential -- by gaining access to the network of your connections -- you must invite these individuals to connect with you.

On LinkedIn, the people in your network are known as "connections." These connections differ from "friends" on platforms like MySpace or Facebook, as they signify people you know well or trust professionally. LinkedIn advises against adding strangers or accepting requests from individuals without a trusted relationship. We will cover this topic in more detail later.

To convert a contact into a connection, you need to send them an invitation to join your network, and they must accept it. Similarly, for someone else to add you to their network, they need to invite you, and you must accept. No matter who sends the invite, once it’s accepted, both individuals are automatically added to each other’s connections list.

There are multiple ways to send invitations on LinkedIn. If you discovered the contact through a colleague or classmate search, or they are already in your e-mail contacts, it’s easy. You simply check the box next to their name and click the "send invitations" button. LinkedIn will send a standard invitation unless you decide to add a personal message.

If you found the person via a name search or advanced search, LinkedIn requires verification that you genuinely know this individual before you can send the invitation. You will be asked how you know them: as a colleague, classmate, business partner, friend, through groups, or in another capacity. If you select "friend" or "other," LinkedIn will request their email address. If you indicate "I don't know [name]," you won’t be allowed to send the invitation. For other categories, you’ll be prompted to specify the job, school, or organization through which you know the person.

LinkedIn also lets you block or filter the invitations you receive. You can choose to be notified only of invitations from people who know your email address or are already on your email contact list. Additionally, you can remove a connection after accepting their invitation. Just go to your connections list, tick the box next to the individuals you want to remove, and click the "remove connections" option. Don’t worry, LinkedIn won’t notify them.

Direct Connections

LinkedIn has specific guidelines for reaching out to individuals within your network and beyond.

The individuals who have agreed to join your network are referred to as your "direct connections." These people are considered one degree away from you in the broader LinkedIn network. You can easily contact them directly by selecting the "send e-mail" option on their profile pages.

Connections of your direct connections are considered two degrees away from you on LinkedIn, and their connections are three degrees away. In essence, all LinkedIn members within three degrees of separation are part of "your network." However, you can only use email to reach out to your direct connections. To contact second and third-degree members, you must use LinkedIn's special features like introductions, InMail, or OpenMail.

With a free LinkedIn account, you are granted five introductions. If you need more, you can purchase additional introductions by upgrading to a premium account. Here's how the introduction process works:

Both InMail and OpenLink are exclusive to premium users who subscribe monthly or annually. InMail is LinkedIn's internal messaging service, allowing you to directly message anyone on the platform without needing an introduction.

OpenLink allows you to receive messages from anyone within the LinkedIn network. The sender doesn’t have to pay for this service. The benefit for you is the ability to keep your personal contact information, such as your e-mail address, private, while still connecting with a broader range of professionals.

Now, let's take a look at what makes LinkedIn different from other social networking platforms.

What Makes LinkedIn Unique?

What sets LinkedIn apart from other social media platforms is its exclusive focus on professional networking. Unlike other sites, LinkedIn serves as an online resume where you can’t post personal photos (except your profile picture), create a blog, share YouTube videos, or engage in playful activities like ‘poking’ others. There’s also no customization available for your profile’s colors or layout, and you won’t find options to search for specific age groups or relationship status.

The minimalist, professional design of LinkedIn's profile pages is a deliberate move to ensure that users are presented in a polished, career-oriented light. There have been many instances where individuals missed out on job opportunities or lost their jobs because of unprofessional content on their personal social media, like MySpace or Facebook. LinkedIn CEO Dan Nye explained that the platform is built to showcase members in 'a professional way on the Internet' [source: LinkedIn].

As mentioned earlier, a LinkedIn connection represents more than just a passing acquaintance. It’s recommended that you treat every connection as a potential reference, whether for a job or a personal introduction to others within their network. You should be confident that each person in your network would vouch for you to a prospective employer or connect you with others. Furthermore, once someone connects with you, they gain access to all of your other connections. It’s important to be mindful of who you connect with, as you don’t want anyone who might harm your reputation with your other contacts.

LinkedIn stands apart from its closest competitor, Facebook, by focusing on individual achievements, whereas Facebook is more group-oriented. For instance, Facebook automatically places users into "networks" based on their geographical location and the college they attended, a feature that likely hails from its early days as a platform for college students. Facebook members can join numerous groups created by other users, further emphasizing its social networking aspect.

LinkedIn offers a feature called LinkedIn Groups, but forming or joining a group here is a more selective process than on Facebook or other social platforms. LinkedIn has a special review committee that only approves groups for professional organizations, alumni networks, industry conferences, and other business-related communities. Once a group is established, the group manager oversees all applications, deciding who gets to join.

Unlike most social networking platforms, LinkedIn operates on a distinct business model. While the site does display some Google ads, it doesn't feature corporate sponsorships or other types of commercial ads as of now. In contrast, MySpace generated nearly $25 million in monthly ad revenue by February 2007 [source: Media Week], and Facebook introduced an advertising program in November 2007 that would feature highly-targeted corporate ads from major brands like Coca-Cola, Blockbuster, and Verizon Wireless [source: PC World].

LinkedIn generates revenue in two primary ways. First, it charges users for access to specific features. For example, if you want to send more than five introductions, you'll need to upgrade to one of the premium accounts (Personal Plus, Business, or Pro). The same applies to sending InMail or receiving OpenLink messages. Posting job vacancies on LinkedIn, along with other services like reference searches and faster customer support, also comes at a cost.

However, LinkedIn’s most significant revenue stream comes from LinkedIn Corporate Solutions, a powerful tool for recruiters and headhunters. When a LinkedIn user adds their professional and educational experience to their profile, they contribute to LinkedIn's ever-growing professional database. For a hefty annual subscription fee, ranging from $100,000 to $250,000 for some companies, LinkedIn Corporate Solutions provides recruiters with advanced search tools and management software to locate the most qualified "passive candidates" [source: HR.com].

A passive candidate is someone who is currently employed and not actively seeking a new job. According to LinkedIn, passive job candidates typically have higher qualifications than those actively looking for work [source: LinkedIn]. Corporate recruiters target these skilled individuals at other companies, attempting to persuade them to switch employers. LinkedIn estimates that more than 100,000 of its members are professional recruiters [source: Workforce.com].

Now, let's explore who uses LinkedIn and what they use it for.

LinkedIn Users

LinkedIn serves a variety of audiences, with one of the primary groups being individuals who want to maintain or rekindle relationships with past colleagues and classmates. This represents the most straightforward and passive form of networking. The concept is that, at some point, you may need to tap into your network for a job opportunity or sales leads. But, for now, it's a simple way to reconnect with old friends and coworkers and see what they've been up to.

Another major user group on LinkedIn consists of job-seekers and those posting job openings. LinkedIn offers a dedicated "Jobs and Hiring" section on the website. While job searching is free, posting a job listing costs $145, though discounts are offered for multiple listings.

To search for job opportunities, you simply fill out a brief search form, specifying a keyword and your preferred location. The search results are sorted into two categories: jobs listed directly on LinkedIn and those posted elsewhere on the Web. LinkedIn prioritizes the results based on your proximity to the job poster within your network. For instance, LinkedIn will let you know if the hiring manager for Acme, Inc. is only two degrees away from you, giving you the opportunity to use an introduction to reach out, potentially giving you an edge over other candidates.

If you're looking to hire but want to avoid paying for a job listing, LinkedIn offers a few free options. On the Hiring and Recruiting page, there's a search tool that lets you find potential candidates by entering keywords. You can also perform an advanced search to target people with specific industry experience. Another method is to broadcast a job opening to your network, sending a message to your direct connections asking for recommendations.

Once you start receiving applications via LinkedIn, you have the option to conduct a reference search (available to premium account holders) to learn more about an applicant's past work experience. This search lets you look up a company by name and see who worked there during a particular time frame, allowing you to verify the applicant's background.

Another key user group consists of full-time recruiters and headhunters. LinkedIn proves to be an invaluable tool for these professionals by offering easy access to a vast network of potential candidates. By subscribing to LinkedIn Corporate Services, recruiters gain even more powerful tools to identify and connect with the best candidates from LinkedIn's 15 million active users.

Sales professionals often invest heavily in purchasing targeted business-to-business sales lead lists. However, LinkedIn provides a more direct approach, allowing salespeople to search for individuals within their industry who may be interested in their offerings. By leveraging introductions from existing connections or using InMail to reach out directly, they can pitch their products to key decision-makers within a company.

Entrepreneurs can utilize LinkedIn to find potential business partners, clients, and vendors. LinkedIn Answers offers a platform where users can ask questions to their network, including connections up to three degrees away. For example, a new business owner could seek advice from others in their industry, or use the LinkedIn Services page to find recommended contractors or specialists.

Public relations professionals are always in search of the right contacts at newspapers, magazines, or TV stations for distributing press releases. With LinkedIn, they can use advanced search tools to find reporters and editors who cover their client's industry and connect with them either through introductions or InMail messages.

Journalists can also use LinkedIn to find direct contacts within companies, bypassing PR representatives and getting straight to the source for more authentic insights.

Now, let's address the important question: does LinkedIn really work?

LinkedIn Results

Whether LinkedIn is effective really depends on your intentions. It proves most valuable when you're pursuing a specific goal, such as finding a job or seeking guidance from professionals in your field [source: B. Mann Consulting]. However, it becomes less beneficial if you're just collecting connections without actively looking for new opportunities or engaging in professional networking.

At its core, LinkedIn is highly effective for re-establishing connections with former colleagues and classmates. With LinkedIn's user base growing to 15 million members, and expected to hit 18 million by the close of 2007, there's a high likelihood that many of your past workmates or school peers have already joined the platform.

Beyond the intriguing curiosity of seeing what old friends (or adversaries) are up to, LinkedIn enables users to transform this previously unseen web of connections into tangible action. While it's enjoyable to reconnect with past acquaintances, LinkedIn encourages users to look past the fun and engage professionally. Whether or not users take advantage of this challenge will ultimately determine how beneficial the platform is for them.

It's evident that LinkedIn is a goldmine for recruiters. A particular recruitment firm we came across spends just over $7,000 annually on LinkedIn Corporate Services, generating more than $100,000 in commissions from candidates discovered via the platform [source: Work Force]. One recruiter, using the InMail feature to reach out to candidates, reports a 90 percent response rate [source: Work Force].

Human behavior suggests that securing a job through someone you know is far easier than from an unknown entity. A tool like LinkedIn exponentially increases your network and the number of people you know. For example, a LinkedIn user with just 41 direct connections can tap into a network of over 200,000 people – those within three degrees of separation. When searching for a job, LinkedIn makes it possible to find openings within your own network. Instead of cold calling a company, you can leverage a mutual connection for an introduction to the hiring manager.

LinkedIn also proves valuable for generating sales leads, especially for individuals with an extensive network of direct connections. We came across a story about the CEO of an online advertising firm who used an introduction from one of his direct contacts to reach the COO of a prospective client, inviting him to lunch. Although the COO declined the lunch offer, he immediately mentioned a need for a new ad server. Two weeks later, the company signed a contract [source: INC.com].

LinkedIn may not offer salespeople a flood of leads like a purchased lead list, but the leads it does generate come with a significant benefit: the possibility of an inside connection. As an article on Inc.com points out, LinkedIn transforms cold calls into warmer opportunities by leveraging shared acquaintances and colleagues [source: Inc.com].

For entrepreneurs and small business owners, LinkedIn Answers can serve as a valuable tool for obtaining business advice and finding potential partners. Exploring the 'Startups and Small Businesses' section, we found detailed, thoughtful responses on topics ranging from health insurance for small businesses to building customer trust and rapidly developing a cost-effective IT infrastructure. While, like any forum, it comes with some spam and self-promotion, LinkedIn has introduced a new feature to flag such issues swiftly [source: LinkedIn Intelligence].

Like any social networking site, LinkedIn runs the risk of becoming just another time-wasting distraction, a platform for gathering the same online acquaintances while riding the latest Web 2.0 trend. However, LinkedIn aims to differentiate itself as the serious platform where professionals will turn when they're ready to engage in meaningful networking [source: USA Today]. The hope is that the wave of Facebook-obsessed college students will eventually migrate to LinkedIn as they enter the professional world.

To conclude, let's address privacy concerns and the risks of hacking related to LinkedIn.

Privacy and Hacking

With LinkedIn's massive popularity, it's easy to get swept up in the thrill of setting up a profile without thinking about how much personal or professional information you are revealing. Unfortunately, over-sharing on LinkedIn could expose you to social engineering attacks from hackers.

Social engineering involves using psychological manipulation to convince people to divulge sensitive information, such as passwords or corporate secrets. This method is effective for breaching business networks because it targets the system’s most vulnerable element: the people [source: SearchSecurity.com].

A classic example of social engineering is when someone calls a company’s IT department pretending to be an anxious executive who has forgotten their network password and needs it urgently for an important meeting. In the chaos, the IT staff may release the password without following proper security protocols [source: Security Focus].

You might believe that the information you share on LinkedIn is secure, with full profiles visible only to members of your network. However, LinkedIn differs from other popular social platforms like Facebook because it allows search engines such as Google to access a version of your profile known as the 'public profile.' When you create a profile on LinkedIn, you are also creating a public version that anyone can view if they conduct a relevant web search.

LinkedIn provides options to adjust your privacy settings for the public profile, including the ability to remove it entirely. You can opt to display only basic information such as your name, location, and job title, or choose the 'full view' that showcases your complete profile, minus recommendations and contact details. Even in the 'full view' mode, your list of connections will never be visible to the public.

Only your direct connections, those one degree away from you, can see your list of connections. This gives you control over your privacy. It is essential to accept LinkedIn invitations only from people you trust. If a hacker knows your personal information, such as your name, current and past workplaces, educational background, and the identities of your colleagues and classmates, they can use this to create a convincing scam. This information helps them gain your trust (hence the term 'con') and manipulate you into revealing information you wouldn’t otherwise share with strangers.

LinkedIn provides users with the ability to modify their privacy settings at any time by selecting the 'Accounts & Settings' option at the top of every page. From there, you can hide your name and location from other LinkedIn members. You have control over whether your connections are notified about changes to your profile or the addition of new connections. Additionally, you can decide if your direct connections can view your connection list.

Regarding LinkedIn's privacy policy, the site assures users that it does not sell or share any personally identifiable information with its partners. However, it does share certain details, such as your industry or geographic region, with third-party websites for advertising purposes. As a result, you may encounter ads tailored to your job or location when visiting LinkedIn’s partner sites. If you prefer not to receive targeted ads, you can disable this feature on the accounts and settings page.