Loading ...Lots of people are interested in social networking business models. MyBlogLog analytics tell me this, because my most popular blog posts are those that often receive hits through Google searches such as ’social networking business model’ (for which I am currently on the first page of results) and ‘facebook business model’ (for which I’ve dropped from the first, to the third page). So it’s a great topic to blog about, particularly if you have a wacky new analogy to make.
I’d like to draw a comparison between social networks, .e.g. MySpace and Facebook, and celebrities such as Jordan (aka Katie Price).
Right now, Facebook is the hottest topic in the Web technology business. Much of the discussion around Facebook is focused on the fact that Facebook doesn’t appear to be generating enough revenue to justify the latest speculative valuations. But does this matter? When it has attention - I don’t think so. This is where celebrities come into it.
Jordan. What does she do? I don’t know - but I do know that she has the publics’ attention. The same goes to Big Brother celebrities (I’ve never understood why they get invited on stage at a University freshers’ party - what do they do?!?). Attention is worth money, because attention gives you an opportunity - which may never, ever be realised - to attach goods & services onto the attention grabbing entity (be it Facebook, or Jordan), to make more money by getting through to more people. It doesn’t matter if you can’t justify the potential returns right now (no one can predict the future anyway) - there’s an opportunity, and you have to seize it whilst it’s hot.
Facebook receives an incredible amount of attention, and so there’s a ‘fantastic’ opportunity for tacking on goods and services, and potentially creating business off the back of this attention. Facebook may never generate the levels of revenue that would justify a $15 billion valuation - but that really doesn’t matter right now.
