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Social Networking Is Not a Business*
- boredguy8 18y agoAlmost no (current) social networks provide a service - they provide a distraction. And we're supposed to be surprised that they're having a hard time making money?
- alaskamiller 18y agoThey make money. It's just not explosive growths.
- KaiP 18y agoI would argue distraction is a service, but not an easy one to monetize, at least in this form.
- omouse 18y agoIt's easy to make money if you're willing to set a price. The trouble for web-based distractions is that they're afraid the price will be too high and kill their traffic. Weewar.com is a solid game, but it's still just a distraction. The way they're making money is by providing a "pro" version where you get access to more distractions: http://weewar.com/upgrade http://weewar.com/upgrade
- boredguy8 18y agoI'd say "entertainment" is a service. Although entertainment can be a distraction, it's a) not necessarily a distraction; b) a component of being entertainment. Purely (or at least mainly) being a distraction isn't a service. And it's hard to think of most "social networks" as much of anything more than a distraction. Really, of the major social networks, I can't think of one that does anything that's not done better somewhere else. And, at least so far, no social networking site has combined those services in a synergistic way.
- tortilla 18y agohttp://www.realitywanted.com http://www.realitywanted.com Read about them in my local paper. They actually charge for premium features.
- 1gor 18y agoThis chart is interesting. http://www.technologyreview.com/files/17765/chartusads_x600.jpg http://www.technologyreview.com/files/17765/chartusads_x600.... Online advertising is growing massively. Social network advertising is growing dismally. Why so many people are still kicking the dead donkey?
- aston 18y agoIs that Leah Culver on the cover?
- akd 18y agoThat's because the social networks haven't opened up the floodgates yet, they're still in data collection mode. The real revenues come when they sell your data -- when Facebook tells Miller that you are a central person in your social network who just sent a message about Bud Light to a frat buddy -- that's when Miller sends you a special offer for your next party and when the real revenues for Facebook come.
- browser411 18y agoNot to pimp my own entry, but I just submitted a post to HN about a 40 yr old company that makes $50-100MM/yr selling white label social network services. Interesting, but perhaps not extremely scalable (i.e., needs a sales force). http://news.ycombinator.com/item?id=227040 http://news.ycombinator.com/item?id=227040