I admit, LinkedIn baffled me for a long time.  I set up an account, and then the string of invitations to connect on LinkedIn arrived in my email — some from people I barely knew.

Once, I attended an event sponsored by the Greater Akron (Ohio) Chamber, at which two young marketing professionals explained that LinkedIn connections should be business related and that it’s ok to ignore an invitation from someone with whom you would not want to do business.  While that makes sense, it still does not explain why LinkedIn matters.

I have not explored LinkedIn to its full networking potential.  But here are a few observations about this now publicly traded company with more than 100 million resumes and profiles posted on its website:

It’s not a criticism, as some suggest, that LinkedIn is an online Rolodex.  At it’s core, it’s a list of contacts.  Only it’s better than a Rolodex, because a Rolodex quickly becomes outdated.  With LinkedIn, it’s up to your connections to keep their own phone numbers, email addresses and other contact information current.

Saying just this much gives LinkedIn value.  In my own experience, I’ve never heard anyone talk about gaining new business through LinkedIn.  But of course that can happen — just as you might get a call if you’re in someone’s Rolodex.   But as with a Rolodex, the old rules still apply: A meaningful business relationship is more likely to happen among people who know each other personally or at least by reputation.  Without some actual connection, calling someone from your LinkedIn list would be no different from calling someone randomly from the phone book.

Beyond serving as an online Rolodex , the best networking use of LinkedIn I’ve seen relates again to the Greater Akron Chamber — and the initative of one particular staffer named Heather.  Whenever the Akron Chamber sponsors a local networking event, Heather uses the “events” function on LinkedIn to spread the word among her personal connections.  Sometimes she puts out several announcements for the same event — with teasers such as “last chance” to register.  She gets amazing results, as I have seen first hand, such as the full house she drew for a women’s cheese-and-wine tasting earlier this year.

For those of us who didn’t buy stock, the issue of LinkedIn’s earnings potential is beside the point.  For casual users, the value of LinkedIn goes back to the point about who you accept into your network.  Quality business connections — whether you’re keeping  in touch online or in old-fashioned ways – make a difference over time.

Just as there were reasons why you put some business cards in your Rolodex and threw away others, there will be reasons why you LinkedIn with some and not with others.