Monday, July 27, 2009
What is your Social Media Business Model?
Social media is becoming more and more attractive to Small Business Owners. However, the majority of social media services do not have a clear business model to present.
If you search around the web, you can easily find a list of business models, which is pretty much like this:
*Merchant – selling somebody else’s products or services
*Manufacturer – selling your own stuff
*Affiliate – making money referring people to somebody else (pay-for- performance)
*Infomediary – money is made by selling customer data
*Community – everybody pitches in (not sure how money is made)
*Brokerage – brings parties together and takes a cut of the action
*Advertising – no need to explain
*Subscription – paid, metered, pay as you go, etc.
In the long run, however, social media has to adopt alternative means for making money. At the moment there are a few alternative business models, of which four larger themes are; Crowd-sourcing, revenue sharing between services and users, developing and selling underlying technologies, and adopting social media tools and approaches for professional use. Some examples of these approaches already exist.
Some core concepts of social media, as well as investigates various phenomena co-occurring with social media, namely user activeness, identity, copyrights, mobility, trust, and side-effects. These phenomena should be kept in mind when designing and launching social media products and services.
Social media tools can also be used to change the working methods of an enterprise by, for example, encouraging openness and networking. The tools also operate in complex enterprise networks. Enterprises offering these new tools as part of the operations of the corporate world will have business opportunities.
So many question marks; too many questions looking for answers. In this crazy world don't we have enough already?????