Wednesday, March 22, 2006

More Jason Calacanis Social Networking

Jason is still talking about social networks. From his post:

"The big problem with social networks is the business model. It is clear that users are not willing to pay for social networking sites like MySpace, Facebook, and Friendster. If any of these sites started charging they would be replaced with a free option. That leaves advertising as the business model.

However, when people are on social networks they have two choices:

1. Interact with people: flirt, find a date, find a mate, hook up, make friends, etc.
2. Click on advertisements.

Very few advertisers are going to be able to beat out the desire for people to hook up--unless of course they have a better way to hook people up with other people. For example an advertisement on MySpace for that says "meet people in your zip code" might actually convert well since folks are in the "hook up" mindset."

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