rumor: LinkedIn is building a business networking app for Facebook

ok, so i'm starting the rumor. 

(note: i'm not talking about the hiring app they already launched).

whether or not it's true, it's what LinkedIn should be doing... along with fixing LinkedIn Groups, creating an API & Platform, and adding pictures to profiles, but i digress.

if they don't, someone else will.  In fact, i'd bet money no less than three guys/girls in garages are working on it right now.  (hell it's probably already live on Facebook right now... i haven't checked).

and while it may seem ludicrous to suggest that a business-focused Facebook app could come out of nowhere to challenge LinkedIn's business-networking juggernaut, given recent Facebook growth rates & Facebook app adoption rates, i don't think it's a complete impossibility.

but even if i'm wrong, and competition isn't a motivational reason, LinkedIn should still do it anyway... why?  here are three reasons:

1. IT'S THE FASTEST WAY TO GROW THEIR USER BASE & DEMOGRAPHIC.
2. IT'S THE FASTEST & CHEAPEST WAY TO BUILD A LINKEDIN PLATFORM.
3. THEY ARE BEST-POSITIONED & MOST CAPABLE TO DO IT.

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[disclaimer: i'm a huge LinkedIn user & fan.  i know many folks who work there, and they are wonderful & talented people.  really, some of the best / smartest around.  i was an early (user #1,350) & regular user and still use it weekly, often daily.  and to be clear: nothing i'm writing here comes from any specific knowledge of what they're up to or any conversations i've had.  it's just what i think they should do, from both user perspective & as an entrepreneur.]

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some observations that lead me to this conclusion:

• Observation 1: LinkedIn is still the natural place for me to go to do business-related networking activities.  I still used my LinkedIn profile as the most richly-described business information profile about me and it serves as my online resume / project history.

• Observation 2: however, i've been getting a lot more Facebook invites lately from people i would normally have expected to send me LinkedIn invites, and i'm occasionally using Facebook to do business-oriented networking & communication activities.  i'm sure i'm not the only one whose business behavior is shifting a little bit.

• Observation 3: if LinkedIn *does* ignore this as a new user acquisition opportunity -- and also, a user *engagement* deepening opportunity -- then there is certainly room for a contender to jump on Facebook & differentiate just enough from normal LinkedIn featureset / demographic to get a foothold.

So i could expound on this subject in more detail, but i think that's enough to outline the threat, and the opportunity. 

Dan, Reid: hope you guys already have this one on the chalkboard.

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UPDATE: re: #2 above, Jeff Pulver has decided to move all his business networking from LinkedIn to Facebook.  have to wait & see whether others follow suit, but certainly worth watching.

Comments

[John Horsley]

I agree with Damon. Linkedin is not really a typical social network and I think if they try to make too many changes it will alienate the existing user base.

Creating a Linkedin brand community on facebook could be an answer I don't know.

10 months ago I started the build of a new platform called Marzar this will launch next month. Marzar has been described as a face book meets myspace for businesses and professionals.

You can visit http://www.marzar.com to register places are limited to 1000 founding members for the launch in August.

[mike simonsen]

I have yet to get over my preconceived non-business hurdle for facebook. To be honest, I feel a little guilty when I spend time on FB. Like I shouldn't be drinking in the bar with all the college kids.

Plus I'm kinda bummed that I've got to go connect to all these people /again/. Like buying albums,tapes,cds,mp3s. I just want to rock out to my Styx record, dammit.

Interestingly though, it feels a bit inexorable. I am having the same experience as you regarding the rate of invites. And I can tell you that the platform nature of FB is already generating business networking activities that never happened on LI, because they don't exist.

[Damon Billian]

Adding pictures on LinkedIn might not be a great idea. Why:

1. It turns LI into a regular social network.
2. Pictures, at least from an HR standpoint, might lead to contacting people/ignoring people because of certain prejudices by the employer/recruiter.

However, I do agree with you that Facebook has thrown down a pretty strong challenge that LI needs to address. The longer they wait to get it going, the more likely it is that someone is going to come in and steal their thunder.

Like you, I know a number of the awesome folks there & only wish them the best.

[Jeremiah Owyang]

There's a few things to consider, check out my Facebook predictions, it impacts this market.

LinkedIn needs to move fast.

http://www.web-strategist.com/blog/2007/06/23/web-strategy-predictions-facebook-identity-social-networks/

I also started a truemor for you
http://truemors.com/?p=6500