One of the big questions out there is “How do you monetize Social Media?” Sites like Twitter and Facebook reportedly have yet to figure out how to positively monetize their sites. One example of a successful model would be the company Zynga, you know the company, the one that brings you such gems as “Mafia Wars” and “Farmville”.
Despite my lack of enthusiasm for the games, the model proves to be successful as the company reports Behind the buzz: Annual revenue at the two-year-old firm is likely to surpass $100 million this year, prompting speculation that the company — backed by the likes of LinkedIn cofounder Reid Hoffman and PayPal cofounder-turned-investor Peter Thiel — will soon go public. The software company also has managed to do something that other hot online brands such as Twitter and Facebook have not: Zynga has found a way to make social networking profitable. (CNN.com) You can read more from the post here.
In a nutshell, users pay for virtual goods and real estate. Talk about disposable income! I’m not sure that this appeals to me however, $100 Million seems proof to me that the model works. What else would these gamers pony up for one wonders! Perhaps it is a past time that people seek within in social media platforms.
What are your thoughts?