You see, Web 2.0 is not only about Facebook and its social networking ilk. In fact, I have yet to figure out where the money is for small and midsize businesses in social networking, beyond those companies in the business of creating stuff for people who use those sites.
It appears that even the big social networking guns are having a hard time figuring out how to "monetize" their huge fan base.
A recent study by research firm, Parks Associates indicates that "72% of social networking users would stop using a site if required to pay a $2 monthly fee. Likewise, nearly 40% would stop if a site contains too many advertisements."
The study reports that a whopping 80 percent of broadband users ages 18-25 use these sites on a monthly basis. But, and here's the clincher, "monetizing these users is proving to be difficult, with even category leaders such as MySpace struggling to turn big profits."
Is there any better way to demonstrate why people use MySpace and Facebook and all those other social networking sites? For fun. They're not going to pay for it and they barely glance at the ads.
Maybe I'm missing something. Can anyone tell how social networking sites can help small and midsize businesses improve their bottom line?