Social Networks Monetized Revenue

WebDirections South 2008 WDS08 - Social Media Monetization

Laurel Papworth - Social Network Strategist +61 (0) 432 684992Blog: http://silkcharm.blogspot.com Web: http://laurelpapworth.com Email: [email protected]

Social Media RevenueThe Business of Being Social

Sunday, 28 September 2008

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ALL MY SLIDES

GROUP AND TAG

WDS08










REVENUE STREAMS










The $64,000 question










The $64,000 question

If you build it...

... will they come?

... ... and will you make money?










free vs paid: If it’s a good Social Network concept, and you don’t monetize it, someone else will.










The ConundrumFree to Member

Paid For by Member

Paid To Member

WHICHEVER YOU CHOOSE, ANOTHER SOCIAL NETWORK WILL CHOOSE THE OPPOSITE

RIPOFF










MEMBER PAYS FOR VIDEO UPLOAD










MEMBER GETS FREE VIDEO UPLOAD










MEMBER IS PAID FOR VIDEO UPLOAD










Assumption: We can only monetize what we value










What we value ... we get free access in return for their Advertising




























MySpacebought by News for $580 million July 2005

reached one hundred millionth user 2006

$900 million revenue deal with Google ads

Makes $2.17 per member per year from advertising - spotlight ads and regular banner.










TOYOTA IN WORLD OF WARCRAFT VIDEO










What we value ... is quality blogging



















TechCrunchTechCrunch image advertisements US$12,000 per month - minimum purchase of 2 months.

$200,000 per month from job listings, sponsorships and advertising

TechCrunch France, Japan, UK, Crunchnotes, MobileCrunch, TalkCrunch, CrunchGear, CrunchBase, CrunchBoard (jobs), and more

$100 million valuation










Social Media Proprietors:

Perez Hilton (fashion and gossip)

Guy Kawasaki (venture capital and business)

Seth Godin (marketing and advertising)

Darren Rowse Problogger (blog and photo)

Gawker (lots!), FastCompany










RIPPLE NOT BROADCAST










What we value ... is choice: tiers of convenience










FreemiumMost services remain free

Premium - free services but more access

Additional services not available to free accounts

More choice - same services but different colors










LINKED IN



















LinkedIn- Valued at 1 billion dollars- Revenue approx $100 million for 2008- 1/4 of revenue from Ads, rest from premium & recruitment

Flickr- bought by Yahoo! $40m in 2005- Getty deal (revenue share for user gen content)

LinkedIn and Flickr










What we value ... is changing the world, together










DONATIONS





































What we value ... open platforms




























FacebookMobwars: $22k per day projected $15 million yr.

$uper Rewards: one App. made $1 million in a week

$uper Rewards offer these payoutsmyOfferPal 60/40CPA Storm 50/50CPA Lead 75/25$R: 90% to publisher










$uper RewardsIncentivizable Offers to cover every country on the planet

Geo Targeting management

Managing all of the creative

Maximizing revenue from each user, including customer support

Some of the Facebook Applications already incorporating $R include:Hockey Pool Pro, Scratch and Win, Plane Crazy, SexyPoke!










Widgets/RSS for Citizen ‘Free’ Advertising










ADVERTISING FROM 113M BLOGS










APIsSalesforce.com: Reported on their blog on Jan 8th of this year that over 40% of all of Salesforce.com traffic comes from their API.

Amazon: 140,000 registered developers. Third-party sellers = 28% of Amazon’s second-quarter unit sales, or $490 million.

eBay: 25,000 developers with 1,900 certified applications. 8 billion API requests, transactions up 84 % annually.



















What we value ... cool fun pixel products (virtual goods)




























Virtual GoodsHabbo - 106 million users between 13 and 16. 10% pay $17 to $18 per month for clothing, household goods (pixel). Capped at $35 per month. $200 million per year from pixels.

Cyworld $140 million per year, $100 million from pixel products

Industry: $2 billion for 2007









Laurel Papworth - Social Network Strategist +61 (0) 432 684992Blog: http://silkcharm.blogspot.com Web: http://laurelpapworth.com Email: [email protected] OF ROCKETON




What we value ... person to person economies










Canada

China

Africa

GermanyNetherlands and Italy

Blog source: http://www.wiseclerk.com

Australia

Jan 2008Coming Soon

Australia

CircleLending














































What we value... our share of revenue for our content








Revenue ShareMetacafe pays video uploaders based on views they bring to site






















What we value... real life merchandise and events










MERCHANDISE AND MEMBER CREATED PRODUCTS ON DEMAND API










MERCHANDISE AND MEMBER CREATED PRODUCTS ON DEMAND API










REVENUE STREAMS










PATENT PENDING










FLICKR: TERINEA






