Paid Social Networking Website Revenues Projection
Posted: November 2nd, 2009.
Do Freemium models work on social networks? A good number of social media market leaders think so, and it also seems so looking at the revenues paid social network websites like Classmates.com and LinkedIn.com have made over the past few years and the revenue they are projected to make in the coming years. Freemium really can be a model social networking websites can take up
Here are the revenue estimates from paid social networking sites in US
2008 : $502 million
2009 : $627 million
2010 : $811 million
2011 : $1,005 million
2012 : $1,211 million
2013 : $1,405 million
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Comments
Comment from Anand
Time November 2, 2009 at 9:39 am
There lies the problem Zeesu. Unlike most other businesses, money making is not part of the social network’s operation (unless it is a LinkedIn or Classmates offering premium features). So, if a money making strategy has to be otherwise induced, it has to come at the cost of user experience..
Comment from Get Your Ears Out
Time November 4, 2009 at 4:24 pm
Don’t agree – you can maintain user experience and think about making money – it’s all about relevancy. You can talk in broad strokes about “premium features or content” but you have to consider how horizontal communities will (supposedly) evolve into more vertical communities that focus on specific interests. We’re hoping to grow a community around live music initially in the UK but there is no reason why we can’t expand that if we get the basics right. We are going to include our first users in the evolution of our site & experience and use affiliate product/services as part of that experience to generate income when appropriate and volume dictates – tickets, music downloads, merchandise etc are all relevant to a real music fan…
Comment from Anand
Time November 4, 2009 at 4:41 pm
I see your point here and think I will agree. Relevant product selling is indeed a monetization strategy that I have not seen any of the popular social networks use. For that matter, most household names in social networking are horizontal and cannot do relevant product selling.
Thanks for the comment ‘Get your ears out’ and good luck on the venture.
Comment from zeesu
Time November 2, 2009 at 9:37 am
social netowrking sites have good huge potential to generate revenue.the key i think is to generate money without effecting user experience