Good question.
David Pogue doesn't see the point of LinkedIn:
What I don’t understand is: If somebody knows me well enough to e-mail me with an invitation to join, why doesn’t he just e-mail me directly with whatever his problem or offer is?
I use LinkedIn as a kind of address book, keeping me updated with the goings on of people I know and have worked with.But beyond that, I just don't see the point.
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