Advertisements



How social networks might make money, virtual goods.

Will selling goods be the answer for social networks?

Brian Oneill says that If you take a look at social networks in Asia, they are all monetizing their sites primarily through social goods. For instance, 51.com, which recently raised a $50 million round, earns 70 percent of their revenue through virtual goods.

I’ve written in the past about monetizing social nets and the challenges that the smaller players will face. Unfortunately, I’m afraid that if your revenue models are tied into advertisers, you may be looking at a light at the end of the tunnel attached to a train. So we talked about this over a year ago, and it’s been written about a lot back then, and still. So what has changed? Nothing.

Social Nets have to sell something other than subscriptions and ad space.  So what is it? Virtual Goods,

Susan Wu, a principal at Charles River Ventures says that people spend real money on virtual objects for  four major reasons:

Virtual objects aren’t really objects – they’re services

Virtual objects create real value for people

The cost of buying objects can be cheaper than “earning” them and lastly, and the most important,

You can make money off of virtual objects.

I would suggest all  those who are “thinking” of  jumping into the social media tech start up game to read the full article by Susan, though it came out roughly a year ago to the day, it is now more relevant than ever before. 

 

Advertisements

1 Response to “How social networks might make money, virtual goods.”


  1. 1 Lapp June 18, 2008 at 2:12 pm

    This is a great article! Thanks!


Comments are currently closed.



Advertisements

The Deets

Marc Meyer is a Digital and Social Media Strategist at DRMG. This is my personal blog where I share observations, thoughts and opinions that are all my own.

Feeds

social media conference

Latest tweet

TwitterCounter for @marc_meyer
Alltop, all the top stories
Add to Technorati Favorites
View Marc Meyer's profile on LinkedIn
SocialTwist Tell-a-Friend

The social me

June 2008
M T W T F S S
« May   Jul »
 1
2345678
9101112131415
16171819202122
23242526272829
30  

Mad Props

My site was nominated for Best Business Blog!
qrcode

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 98,291 other followers

Advertisements

%d bloggers like this: