Social networks gather people with similar interests and many people enjoy being part of a larger network of friends and future friends. Social networks actively encourage people to join so that they can increase their influence with online advertisers. These social networks make huge amounts of money from advertisers who want to expose their products and services to all these people.
This is why most social networks offer great high-tech features like discussion groups, video email, online social games, photo albums, contests, and many more exciting things to come. They build a virtual mall of fun stuff so that people not only visit but stay longer. The longer a person stays on the website, the more opportunities advertisers have to place their ad in front of more people. This is called the “stickiness” of the website.
But there are other good reasons people use social networks as well. Networking is a way for business people to meet potential customers, partners, and clients in a friendly social way and it has always proved to be attractive. It’s for the same reason that many companies offer tee times for their employees who are entertaining customers – it’s a way to personalize a meeting during a friendly round of golf. Thus if you have a business, being socially active can earn you money.
These features of social networking have been very successful in increasing the number of people congregating on these social network sites in recent times. However, competition in this ‘niche’ is increasing and will continue to grow. A new niche is needed.
Most businesses must spend money not only to start but also to increase the number of their customers. Social networks advertise in their infancy to acquire members and this usually puts them in the “red” until they attract enough people to pay for ad space. Can’t agree to join. Many companies of all kinds must spend more than 70% of their revenue to maintain and grow their business. If this money is given to advertising agencies, then only a limited number of people benefit from it.
Enter the “monetized” social network. Since most businesses in the world are very happy if they can make a 30% profit, why not give 70% of advertising revenue back to the members of the social network? The income each member receives is based on the number of members each member brings to the membership and you have a viral team of social network workers who are being paid to increase the number of people in the network. Instead of paying for ads to drive people to their website, members become advertisers and are compensated for their efforts. Furthermore, since advertisers who will pay this social networking site to host their ads are willing to pay the going rate for internet advertising, a 70% share is being given back to both the members and the social networking site. 30% profit increases for site owners. With the increase of membership proportionately. If you could find a social network like this, wouldn’t you rather be a member there than Facebook, Twitter, or MySpace keep all the benefits for themselves and take advantage of the very lucrative services their members offer?
The business model of this monetized social network can be structured to reward those who work the hardest to bring new people to the website. After all, this is how money is earned from the Internet. So imagine if you developed a method to track both how much each member views ads on a website and how many people they have invited to join the network, that would be based on a commission structure. How to provide that which will be fair and just.
Consider a commission structure in a simple database that tracks who invites and puts newcomers in the structure under the person who invited them. Let’s say that membership on this social network is free. Now imagine everyone being rewarded for bringing in new people. Say Joe invites 10 of his friends to join and provides them with a link. These 10 friends connect because they like Joe and have interests together. Each of these 10 friends has 10 friends who want to join them too. Now there are 100 people under Joe and Joe is being rewarded a portion of the advertising revenue for the 100 people and he has invited only 10 of them. Of course, those 100 people can each have 10 friends they invite and under which the number of people is now 1000 and it continues. Joe only invited 10 but there’s nothing to stop him from inviting more and he continues to be rewarded for bringing new people to the website. This is the driving force of social networking which will dominate the industry very soon.
Each member is paid based on the time spent on the social networking site which we all do like clicking ads (window shopping only), searching, checking our email, playing games, chatting with our friends, and make new friends. The social network may also offer its member’s volume discounts through their advertisers so that members can save money on the products they purchase. Thus each member in one case shares the revenue they spend accessing the website. The second stream of income is from a commission that a member receives for bringing new people to the site.
You can do the math. For example, use only 5% of the total revenue generated by Joe’s 10 (plus) people he invited himself, and use 2% of everyone he invited up to 6 levels below Joe. Using the example, if Joe’s group expands to 6 levels, there could be 1 million people under Joe. Considering that there are over 1.7 billion people using the Internet and that number is increasing every day, how hard is it to believe?
Plus, to include a more committed group of people, you offer some of the premium-level memberships. This is a common business method for hiring leaders who can help manage and promote upcoming groups. But instead of being free, you charge $200 USD so that you only allow people who are committed to an idea and make a sound decision to join that level. At first, you’ll need many of these types of people, but once they’ve established themselves, you’ll put off this level of the membership until the size of the group calls for more leadership or training. Of. So you give these special premium members say 20% of their directly sponsored member’s revenue and 6% of the revenue generated by the people they sponsor for up to 6 levels.
Make Money With Social Networking
With the development of social networking on the Internet, many people have turned to the networks found online as a source of earning potential. Some of the most popular sites, such as YouTube, Facebook, and MySpace, are great places to boost sales for your company or organization, gain additional customers or donors, and even market your products or services.
If done successfully, everyone has the potential to make money on any social networking site within a reasonable amount of time. Internet marketers increasingly use the network to grow their own demographic, as sites like Facebook bring in thousands of new members each month. Using social networking as a way to promote or advertise is extremely beneficial, as it reaches a massive audience across the globe at the same time. YouTube, a site where anyone can post videos, tutorials, or anything else they feel like posting, reaches 100 million visitors per month. By using this site as a source of advertising or marketing, companies or organizations are able to share their message in a way that would be impossible with traditional methods.
To start marketing through a social networking site, the first step is to sign up for an account. MySpace, Xanga, and Facebook are just a few of the many websites that have networking capabilities. Signing up for an account can be done with the company name, charitable name, or even the real name of the user. Many Internet marketers typically use a pen name to register and then create a profile to advertise or market their ideas or products.
There is usually no limit to selling a product on social networking sites. Opportunities to post links back to individual websites help generate traffic and give users a greater ability to understand more about what is being advertised. Websites like MySpace allow video or music capabilities to act like TV commercials, without the astronomical costs involved in a television media campaign. Another beneficial feature found in many social networking sites is the ability to share information through the use of bulletins. It allows anyone to compose messages or display information that is posted across the network that pertains to individual users. Providing links or product reviews and then sending them as a mass bulletin to thousands of people generates commission sales for the products advertised by the user.
Many people use their profile as a way to try and earn money through social networking websites. Social networking on the Internet enables direct relationships between individuals, companies, organizations, charities, and encourages dialogue, direct participation, and immediate response to causes and events. Social networking profiles are used to promote a product or even promote the products of other parties. Using profiles to post reviews, informational pieces, and links to products or other sites are just some of the ways that marketers use social networking sites in the 21st century.
