Is LinkedIn Gouging Recruiters?

I use LinkedIn a lot. Their database is tremendous, and I believe that owe it to my clients to make sure I use this resource to identify candidates.

My concern, however, is how LinkedIn does everything in its power to protect its data. I probably would do the same thing if I were LinkedIn, and this is why they're so profitable, but are they exploiting people?

Personally, I feel that the network takes advantage, and I can't justify paying for their top tier premium packages. They're way overpriced in my opinion

Personally, I think the inmail is the best tool, and of course, they keep that to 50 even with the top recruitment package.

$5K per year is a lot of money for 50 inmails. Yes, I know about the other features, but I still question whether recruiters are getting enough value in return for these types of fees.

Any opinions on this issue? I look forward to hearing them.

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Permalink Reply by Nate Fischer on February 28, 2012 at 9:53am

They can afford to gouge you, they have what you want.

Personally, I have always used LinkedIn, know how to get around and find people, and haven't ever paid a dime for it. You've got a phone, why are you depending on InMails?

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Permalink Reply by Sandra McCartt on February 28, 2012 at 12:50pm

I always have to smile about recruiters fussing about the cost of a source. Two hundred dollars a year for the basic package, fees from placed LinkedIn candidates 65k so far this year. Not a bad roi. Recruiting time saved by ease of finding targeted candidates, priceless. Even if I had the premium at 5k. Would I pay 5k to make 65k doesn't seem like complicated math to me.

Seems like a fair cost of inventory to me. Not sure why any of us would think we should get a free ride from anyone who has spent millions to create a source. We sure ask our clients to pay well for their source of candidates they hire. We got a free ride for several years and still have that option. If anybody wants tools to make their job easier they normally get to buy a hammer. Home depot doesn't give away tools either.

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Permalink Reply by Melissa Zentgraf on February 28, 2012 at 2:26pm

I use the Recruiter level and yes, I cringe each month as I get the email notice saying my poor little credit card has been charged. BUT:

It's the only source I pay for.
The inMails roll over (think phone minutes) and ones that go unanswered go back into your bank after 7 days if unanswered AND they can still be answered. Right now, I have about 30 inMails in process and 70 unused ones. It's pretty good.
I've achieved break even already.
I'm early enough (just at 2 years) in my career that I don't have a huge database of people I can "just pick up the phone" for. But this is helping me get there. I'm connecting with a lot of people that may not be interested today but will be later.
Knowing that I pay for this keeps me disciplined. Since it's $20 a day, you can bet your booty that I'm sourcing on it all I can.
I really like the contact management function in there. Saves me time when I have the same people show up in different searches. I can make notes on them, see if I've sent them info in the past, all without leaving their profile. Very nice.

All that said, I'm not as enamored of the job slot they have. I'm thinking of dropping that one. So I'm not a total shill for LinkedIn. :)

And Sandra is right. We get paid for our expertise. Why shouldn't they?

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Permalink Reply by Amber on February 28, 2012 at 3:12pm

I'm glad this posted. I posted a question about this the other day, and then got a call from a rep at LI who went over the recruiter package with me. I did try to ask him some questions about the differences between the types of accounts on their site - 3 "Talent" types and 3 "Business" types. He said those were just "old plans" and the LI Recruiter is what I should get. Well, I think the advice I got the other day from people here and what I have read has helped to decide that next week I am signing up for either a Talent Basic or Business Plus account. I'm going with a monthly plan to see if I like it. If anyone has used these 2 kinds of accounts and thinks one type is better then the other, let me know!

John - I guess everyone would have to decide if the price was worth what they could get from it. I agree with those who said if you can use it to make placements, it would definitely be well worth the price. Since I haven't made a placement or found a new client using LI, I'm going to go with one of these plans to see if it gives me a feel as to whether the LI Recruiter account is feasible and reasonable for us to pay $11,160/yr for 3 of us.

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Permalink Reply by Andrew Hanneman on February 29, 2012 at 10:55am

I don't know the name of the plan I have, but I think it is talent finder basic....pretty fair fee and I'm working on getting it refunded each month by the company, so a good thing