How LinkedIn Makes Money; Behind the IPO Numbers

In May, LinkedIn went public. To much fanfare, the business-oriented social networking site sold common shares at $45 each, for a total offering of $352.8 million and an overall valuation — public and private shares — of $4.3 billion. It was the biggest Internet initial public offering since Google went public in 2004. At one point on opening day, a share was trading at over $94, bringing back wistful memories of the dotcom boom of the late 1990s. At the end of the day, the company was worth $8.9 billion. In comparison, Facebook, the world's largest social network, but still a private company, may be worth $94 billion if it went public in the near future, according to published reports.

Encouraging to Other Internet Companies?

Wall Street analysts, venture capitalists, and private technology companies were all carefully watching LinkedIn's debut into the world of public ownership. Over the last few years, there have been few high-profile technology filings and a good deal of uncertainly existed about how such an IPO would be received by investors. Several other social media firms, notably Facebook and Groupon, are considering IPOs and LinkedIn's strong showing should encourage them.

LinkedIn is the business counterpart of the more raucous and popular Facebook — over 500 million users — and the now fading MySpace. You will not be bumping into Fans of Justin Bieber or Kim Kardashian on LinkedIn. It focuses on business professionals who wish to find business contacts, potential clients or employees, or job leads. The company considers its exclusive focus on professionals a key competitive advantage, eliminating the distractions of sites that cater to teenagers as well as adults. LinkedIn accommodates both personal and corporate profiles.

LinkedIn's History

Established in 2003, California-based LinkedIn was the idea of Reid Hoffman, the founder of SocialNet.com, a now defunct online dating site, and a former PayPal executive. He became LinkedIn's first CEO and was joined by several other executives from PayPal and SocialNet.com. At the start, Hoffman personally bankrolled the company. All of the original founders have left LinkedIn, although Hoffman remains executive chairman. The current CEO is Jeff Weiner, who once ran Yahoo's Network division.

The company did not turn a profit until 2010 when net revenue was $243.1 million. That compares with $29.3 billion for Google. Facebook reportedly took in about $2 billion in revenues in 2010, with $1.86 billion coming from advertising sales, according to eMarketer, the research and publishing firm. MySpace, owned by Rupert Murdoch's News Corporation, had advertising revenues of $288 million in 2010, an estimate also provided by eMarketer.

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The Four Main Issues with Hiring Private Tuition

The Four Main Issues with Hiring Private Tuition

As clear cut as your goal may be to get a tutor for yourself or your child, there are a few issues that you have to consider.  These issues relate to logistics, costs, communication and flexibility.  When you find the best private tuition that can work through all these issues, you can also ensure that you’ll get the best kind of instruction.  There will be no problems to hinder you from trying to get ahead in the academic field when you find a great tuition.

 

In line with logistics, you have to think about private tuition coming to your home or school.  If it’s your child you’re getting a tutor for, do you have to take your child to the library, the tutor’s home or the tutoring center?  Of course the best kind of tuition will be with the tutor coming to your home.  You or your child can come from a day at school and with a few hours’ leeway; your tutor will come knocking on your door.  You also have to think about transportation for the tutor in this case and maybe sometimes you can mix the tutoring location up to get a little bit of focus on the lessons.

 

Costs will be the next issue on your docket in terms of getting private tuition.  You have a number of agencies and individuals to consider no doubt- and you can narrow the choices down when you look at their hourly rates.  Aside from that, tuition includes materials too.  There will also be costs related to that.  Make sure you ask about them so you have a clearer picture of how much you need to pay for the tuition.  You also have to know when you need to pay the person giving you private tuition.  It can be right after a session or on a specific date in the month.  Find out too if there are charges to sessions that you cancel with short notice.

 

The next factor would be communication.  What this means is, will your private tuition have the time and effort to commit keeping in touch with your teacher.  If you’re hiring a tutor for your child, you also need to figure communication out between your child’s tutor and your child’s teacher at school.  Just in case you need to speak with your tutor outside the session, can he or she talk with you through email or phone?  In your child’s case sometimes the presence of tuition in school meetings can be a big plus.


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