How I promote to Money From social networks ?

By Mayor Mize


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The idea that online social networks will promote to money promotion eyeballs (advertising) or else products is missing the whole price proposition of a social network. The real opportunity is in harnessing the rich data that is created by persons participating within conversations and interacting with each other. I recently finished some research on two amazing social networks in the healthcare space � Sermo and PatientsLikeMe � that seems to take figured this out.

The model itself is not center; both communities commercialize their price of connection data by aggregating and anonymizing it, and next finding third parties that benefit from, and are willing to pay used for the rich data formed by the the people. Within the case of these healthcare communities, the third parties are pharmaceuticals, insurance companies, and financial services firms. Both companies make this within a completely transparent way that is clear to users. Unlike the traditional advertising model, the conversations and interactions create the value, not the total of members. If you think roughly traditional network metrics such as hits or unique visitors as a measure of Success, neither Sermo nor PatientsLikeMe would rank very high.

At present to Facebook � often balked at used for its $10-$15 billion estimated valuation, and derided for its failure with the warning advertising platform � the social network has yet to identify a solid trade model. The company recently announced a small analytical feature that presents aggregated, anonymous user data that could in truth be particularly valuable to companies. The Facebook Lexicon launched with little fanfare, but effectively allows users to chart �buzz� or the viral popularity of various terms (warning: This very cool tool has the would-be to impede work productivity).