That’s it, it’s official: Viadeo is dead. Well, almost dead. The French competitor of the giant LinkedIn was bought by the media group Le Figaro, for an amount of €1.5 million. There was a time when the market capitalization of Viadeo reached the 148.5 million euros… Why such a decline?
Everyone was surprised: Microsoft bought LinkedIn for $ 26 billion. It was last June. Last week, its French competitor Viadeo was bought for…€1.5 million. In a few years, Viadeo ended up worth 2,440 times less than LinkedIn, while the professional social network was the most serious competitor of the American giant. Today it is not worth much.
It has been said a lot about Viadeo:
- “Viadeo is bad. The product is not as good as “LinkedIn”
- “They should not have gone to China”
- “French products can not win internationally”
But what are the real reasons for his forfeiture? We analyzed the life of Viadeo and we came to the conclusion that 4 reasons led Viadeo to the death 💀😿 #RIP
Viadeo rhymes with international failure
- First (obvious) reason, the international failure and singularly in China. In 2007, Viadeo is three years old and acquires Tianji, “China’s first professional social network”.
- Problem: the Chinese web is very special and more than seven years later, Tianji, despite its 20 million members, more or less active, does not make much money to Viadeo: less than one million euros on the annual turnover of 20 million.
- Before, Viadeo had also failed in India, and had to close after three years.
In other countries too, Viadeo has not really succeeded in its implementation. If the company claims more than 60 million members, of which 10 million in France, it realizes 95% of its turnover in France, more than ten years after its creation. Millions of subscribers, it’s cool, but if they don’t connect they don’t interest advertisers or recruiters, what’s the point?
Viadeo rhymes with poor economic model
- Viadeo said in its initial public offering in June 2014 that it had a “proven economic model”. In 2016 the company recognizes that it still working on its offers. For a startup this is understandable but for a company that is 11 years old it is not very serious. Especially 18 months after its IPO.
- Viadeo began to develop its B-to-B offerings very late, while LinkedIn began very early to work with recruiting companies and make them pay subscriptions. Clearly, dropping the principle of paid subscription for users.
- But it was too late. Viadeo could have been a great success if it had had a real positioning. Because being an average copy of LinkedIn can only last a while: without the technological capabilities, innovative and funding needed to get out of the shadow of the original, difficult to succeed
In short, Viadeo has already made a serious mistake by opting for an economic model that restricts the growth of its user base. To monetize its services, Viadeo sold paid subscriptions to its members. The interest of their platform, in free, was too limited, and it ended up tired of many users. Then they copied LinkedIn but took a long time…and they ended up losing the race. Its refocusing was far too late.
Viadeo and his technological weaknesses
- We are not going to lie: the interface of Viadeo was not very modern and its algorithm not very effective. There was a lot of bugs and a lot of spam. A user could receive a lot of mails and unsubscribing was very complicated. Worse, paying subscriptions were difficult to remove. A real technological hell.
- The plateform had many interface changes in recent months to adapt to the fierce competition of LinkedIn but users have had time to go sign up on other professional social networks. And it’s a shame because the latest version of Viadeo is very pretty. But no one will benefit…
The world of the web evolves very quickly. In order to acquire and retain its new users, it is necessary to have a pretty and easy to use platform. Without an effective platform, they will not hesitate to leave and unsubscribe.
Today and tomorrow, it’s all about sharing
- Whether it is to find a job, investors for its startup or a new business opportunity, it is more efficient to ask its trusted professional network.
- The most difficult part is to bring together all the important people of his professional network: former classmate, club business, business club, coworking space… To do this, you can create multiple online business teams. And add people you trust. Then, you will be able to share business opportunities.
- If you are all alone on Viadeo or LinkedIn, it has absolutely no interest.
With Swabbl, you can share business opportunities everyday of your life. Not only when you meet your business friends but also the other days, online. From your desk or your sofa. It’s really convenient because you can see your business friends once a week and also talk to them, share opportunities, days after the meeting. It’s an opportunity to go further in your relationship and also make clear your needs when you don’t have the time during a meeting. Think about it, you will make business more efficiently!