How social networks are (trying) to make money myths, reality and opportunities ouriel.typepad.com

Myth#1 Except Facebook and MySpace there is not so much to talk about

Myth#2 Social Networks are only for teens so who cares?

Myth#3 Social Networks are not making any money

MySpace 750 million dollars Facebook 350 million dollars Cyworld 220 million dollars Mixi 100 million dollars Flickr 55 to 120 millions dollars LinkedIN 100 million dollars (and profitable) Xing 45 million dollars YouTube 200 million dollars (not really a SN) Digg 20 million dollars Show me the money

MySpace 750 million dollars

Facebook 350 million dollars

Cyworld 220 million dollars

Mixi 100 million dollars

Flickr 55 to 120 millions dollars

LinkedIN 100 million dollars (and profitable)

Xing 45 million dollars

YouTube 200 million dollars (not really a SN)

Digg 20 million dollars

BUT..money is not for everyone, yet Twitter >>>>>> 0 dollars MyBlogLog >> 0 dollars Delicious >>>> 0 dollars FriendFeed >> 0 dollars Last.fm >>>>>> x dollars

Twitter >>>>>> 0 dollars

MyBlogLog >> 0 dollars

Delicious >>>> 0 dollars

FriendFeed >> 0 dollars

Last.fm >>>>>> x dollars

Reality#1 The 4 revenue streams

#1Advertising Traditionnal ads Social ads Sponsoring Affiliation Feed advertising Filter Broad Ads Endemic Ads Demographic Ads

Traditionnal ads

Social ads

Sponsoring

Affiliation

Feed advertising

Filter

Broad Ads

Endemic Ads

Demographic Ads

#2Digital goods Hot or Not generates $7M (yearly) from sale of virtual flowers (up to $10 per flower). Habbo (virtual world) generates $60M (yearly) from virtual goods. Dogster – 50 million gifts sent in 2 years, gifts cost $0.25-$5.

Hot or Not generates $7M (yearly) from sale of virtual flowers (up to $10 per flower).

Habbo (virtual world) generates $60M (yearly) from virtual goods.

Dogster – 50 million gifts sent in 2 years, gifts cost $0.25-$5.

35 million dollars out of this, hugh!

#3Membership Xing Club Penguin Second Life

Xing

Club Penguin

Second Life

#4Premium services LinkedIN Jobs Facebook surveys Ning ad free service

LinkedIN Jobs

Facebook surveys

Ning ad free service

Reality#2 The attention challenge

Reality#3 Profitability is and will be hard to get

Reality#4 The birth of an ecosystem

Actors making money around SNs Widget : Slide / Rockyou Apps : Games, Lending Club Ad networks : OfferPal, Super Rewards Services on Services : sms for Twitter Consulting : Agencies, Freelance, bloggers Back Office: moderation / spam tool providers

Widget : Slide / Rockyou

Apps : Games, Lending Club

Ad networks : OfferPal, Super Rewards

Services on Services : sms for Twitter

Consulting : Agencies, Freelance, bloggers

Back Office: moderation / spam tool providers

Opportunity#1 Current Search is useless

How would you describe social search? Marissa Mayer: We believe social search is any search aided by a social interaction or a social connection…

Opportunity#2 Mobile

52 billion USD by 2012

Opportunity#3 Games and entertainment

Opportunity#4 Geographical extension

Opportunity#5 Connect to Reality

Opportunity#6 Payment/MicroPayment / eCommerce

Opportunity#7 Enterprise

Opportunity#8 Beyond Business and Money

Contributors to this presentation All sources and references on http://sites.google.com/site/presentationsns/