Can Social Networks Make Money?

The cover story in this month's MIT Tech Review: "It's a model that stirs memories of the first Internet bubble: build the user base and hope the money comes--from an IPO, a buyout, or ads. At this point, KickApps does not reveal revenue figures, or even what kind of a cut it is taking from the ads. That, too, brings back memories: staying mum about revenue was always a sign that there wasn't much to talk about."

"The problems with social-network advertising revolve around three main issues: attention, privacy, and content."


  1. The E.Factor, a new social network with over 48K members in 4 months is currently the only social network which answers the question asked by many, "where is the business model?" As co-founder Marion Freijsen says, "whilst other networks have to rely on advertising revenue or struggle introducing a sustainable business model at a later stage, E.Factor combines new technology networking with an old-school business model based on premium membership fees, technology licensing via its' satellites, and fees for a variety of services."

  2. @stephaniefrasco
    Yeah, right.

    Never heard of LinkedIn before?

  3. Interesting website. I've never heard of The only social network that I am aware of that you directly make money with can be found at where you share in the advertising dollars and are able to connect with other business entrepreneurs.


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