On page 15 of the document’s 'risks' section, Jim Edwards of BNET observed that the 90 million-strong network has highlighted that "… a substantial majority of our members do not visit our website on a monthly basis, and a substantial majority of our page views are generated by a minority of our members."
It was also indicated that "the number of the registered members is higher than the number of actual members."
"That's a concern for a business that is reliant on advertising, as LinkedIn is", reports Edwards. Consumers will need to be exposed to the advertisement messages more than once a month for the ads to be effective, but now this desired consumer pool is only limited to the minority of its members.
32% of LinkedIn's revenue comes from advertising, and current advertisers pay either a minimum of $2 per-click or $3 per-thousand-impressions to reach out to the professional users on the social network.
LinkedIn earned US$161.4 million in net revenue in the first nine months of 2010.
[Source: BNet]
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