Whatever you may think of LinkedIn's valuation (which currently stands at roughly $8.25bn), it's clear that they have found a way to make money from their targeted social network. Today LinkedIn released their earnings numbers for the second quarter, and they have more than doubled their Q2 revenue from last year to $121m, and their Q2 profit came in above expectation at $4.5m
Sure, LinkedIn is far from being a very profitable company or even close to justifying its valuation, but it definitely seems that their site is showing its potential. Two-thirds of its revenue comes from paid recruiter activity, which to me is an encouraging sign. I think it shows that if you're not huge, like Google or Facebook, you need to be narrow, and then there is still (a lot of) money to be made.
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