Social Networks Are Searching for Profits

In the recent story, Social Networks Still Looking for Profits, the author discusses that social networks have still not found a way to monetize themselves. Right now, social networks are building eyeballs and will then figure out a revenue model.

While the big social networks MySpace and Facebook mainly rely on advertising for revenue, they need to start thinking about other revenue streams.  As an example, MySpace is trying to cash in on its five million musicians with its new online music store. Social networks need to be creative to find ways to make money. At the same time, they need to be careful not to jeopardize their existing system such as Facebook did with its Beacon advertising initiative.

Make sure to read (or listen to) the entire article at Social Networks Still Looking for Profits.

What do you think? Do you think that social networks should try to monetize from their users, other than just advertising?

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Comments

[Michael Quintos]

That is a great article Jason. The Widget industry is still trying different models and it is driven by a new requirement that ad spending become more effective. Here is another great article on the subject that is very worth the quick read.

http://www.techcrunch.com/2008/04/26/widgets-the-marketers-recession-survival-tool/

[Jason Jacobsohn]

Thanks Michael for the article. Definitely provides another perspective.