The next generation of professional platforms

You might have seen this video on Twitter / Youtube / Whatsapp:

https://www.youtube.com/watch?v=5ElhHh6NRDE

The above video shows a group of people trying to get into a job interview. Some reports suggest these people have lined up for 10 vacancies, while others indicate there could be up to 80. Regardless of the exact number, it made me realize that finding a new job is not as seamless as it was the last time I was actively looking for roles (~2015).

Back then, LinkedIn acted like a digital rolodex and had 30 million monthly active users in India, compared to around 100 million today, making it the largest professional social networking platform. It has become the most ubiquitous tool for building and distributing your professional brand. Ironically, I am creating this post for the same reason, hah.

However, there are inherent problems with LinkedIn becoming the default platform for job searching and hiring. As a social media network, it is incentivized to make users spend more time on the platform and to promote content that generates more engagement. This often leads to cringe-worthy posts like:

Which leads to linkedin launching features like games & video on bottom nav:

If you want to read more on why has LinkedIn become so cringe, you can check out: Trung Phan’s article

But that’s on the content part of the platform. How is the most used professional platform faring when it comes to addressing new job opportunities? Let me give you one example:?

My previous employer, Mosaic Wellness, was hiring for a mid / entry level position in Mumbai.?

- Only 10% of applicants are actually at a manager level

- Mumbai is not even mentioned on the heatmap & 60% of the applicants are DEFINITELY not from Mumbai

This means that neither the applicants nor the job posters will get the desired results. But what would make a professional network successful? And do we need one professional network or multiple?

Before I delve more into this, here’s a relatable tweet:

Back to business. This is what LinkedIn’s revenue breakup looks like:

Approximately 65% of LinkedIn's revenue comes from talent solutions and LinkedIn Premium, which are predominantly used by job seekers and sales professionals. While the exact revenue breakdown for Marketing Solutions is not available, this business line includes sponsored videos, InMail, lead generation forms, etc. Few of these are B2C use cases, which means they do not attract FMCG or e-commerce companies, who are the highest marketing spenders. Hence, increasing engagement time on the app by pushing content, games, videos, etc., might not significantly boost LinkedIn's revenue.

At its core, any professional platform can remain successful for a long time if it:

a) helps recruiters find quality candidates

b) helps candidates secure more jobs

c) maintains healthy engagement with important decision-makers who can be targeted through outbound sales products

Clearly, I am not the only one who thinks this way.?

Let’s look into each and every point mentioned above in a bit of detail.

Part 1: Helping recruiters get access to quality candidates

43% of LinkedIn’s revenue comes from talent services. Naukri.com generates around INR 2500 crore in annual revenue, with approximately 70% coming from recruiter services. This indicates that recruiters are willing to pay a significant amount of money to hire the right candidates. LinkedIn acts as a proof of work (since its a digital CV); but as does gitlab for devs or Kaggle for data scientists or behance for designers. Savvy recruiters might just go to these platforms and find ideal candidates for their roles.

While a horizontal platform can use algorithms to match candidates with recruiters, it cannot prevent people from applying to jobs they may not be a good fit for. This makes a recruiter’s job harder, as they have to sift through many irrelevant profiles to find suitable candidates. There is a larger revenue potential in helping candidates become job-ready, especially the ones who do not have proof of work.

But before I jump into the second part of the problem, here’s a funny meme that summarizes this situation:

Part 2: Helping candidates get more jobs

You will find various instances like the one shared below:

While there are a fair share of LinkedIn success stories, Naukri is still more effective for getting job interviews. The biggest reason for this disparity is the fact that there is a mismatch between an applicant’s skill and what the role expects them to know.

There is a clear opportunity to enhance job readiness and add an educational layer to professional social media networks. This educational component, though initially modest, could open up more opportunities for higher average contract value (ACV) from recruiters. Once the educational aspect gains momentum, these platforms can charge recruiters a premium for sending them only vetted candidates.

Such platforms could either be vertically focused or operate as horizontal platforms like LinkedIn. However, it might not be LinkedIn itself, as it already serves a large user base primarily interested in engaging with their news feed. LinkedIn might still come out on top if it makes a strategic acquisition, similar to Facebook’s acquisition of Instagram.

While I have discussed potential solutions to the challenges faced by recruiters and candidates, what does healthy engagement on these platforms look like?

Part 3: Maintaining a healthy level of engagement

A healthy engagement ensures that all key decision makers are always checking the platform frequently. This makes it attractive for people who want to build their digital rolodex. The chances of finding relevant content is higher on a vertical platform than a horizontal one. Twitch records a higher watch time than YouTube despite having lower monthly active users. If there is a chance of making money via upskilling courses, the engagement problem gets solved on its own. There will be enough people on the platform for sales reps to reach out to key decision makers & recruiters to reach out to ideal candidates

TL;DR + Conclusion

The next breakout professional platform might be more vertical in nature than horizontal. The next breakout professional platform might also be a big upskilling (education) platform. While the above 2 are more generic statements, at the end of day the winning platform will:

1. Give a leverage to recruiters for hiring better
2. Give a leverage to applicants to be ready for jobs
3. Maintain a healthy engagement that reduces clickbait and focuses on time spent for meaningful interactions

By creating more vertically focused platforms, they can cater to specific industries and job roles, ensuring a more tailored experience for both recruiters and candidates. As the landscape evolves, the platforms that prioritize meaningful engagement and continuous learning will be the ones that lead the way, driving the next wave of innovation in professional networking.

Would be happy to hear your thoughts. I’m at [email protected] – feel free to reach out (with a note, of course) if you have any suggestions or want to jam on this. These are my views & not my employers’