Archive for the ‘Social Networking’ Category

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After reviewing some of the business models employed by the social networks, we are struck with the lack of self-sufficient concepts being employed.

Many are falling back on advertising or virtual transactions because recession has made it difficult to sustain a business without a solid model.

Just two years ago there was a effort to find and define the various business models for an internet business.

I have included a few links to some of the business models lists:

From Fred Wilson comes a long-tail list.

From professor Michael Rappa who wrote, “In the most basic sense, a business model is the method of doing business by which a company can sustain itself — that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain”. (We will discuss how the Value Chain is important to selling in a minute.)

Dave McClure spent some time discussing Facebook’s need to find a good business model in early 08 when he suggested, “All they gotta do is figure out how to Show Me The Money“.

The big social platforms like Facebook and Twitter have relied on rapid growth to buy time, as they figured out a monetization model that could sustain. In the end, they have mostly fallen back on advertising sales to pay the bills.

Selling advertising is great. But Google and thousands of other sites are reaching into the pocket of advertisers all at the same time.

Yes, advertising is an important part of the process of selling, but it is not finding a great deal of success in social networks.

Selling things (real things) has been a part of the business value chain for generations. Selling goods can be adapted to the large internet networks as well, but the sales offer must fit the audience.

As we study the list of business models, we feel that the sustainable models for social spaces will begin in Affiliate sales and then move into full-on E-commerce.

Nothing happens of real value until someone sell something. Amazon sells real stuff, so does Ebay, Microsoft and Apple. Sustainable models work off from the proven components of cost-of-goods, capture-cost, mark-up and efficient distribution.

The internet already has proven Affiliate sales commissions and E-commerce both succeed online… The Web 2.0 world will eventually evolve into a place where it is common to buy something real by using an application that adds extra value to the purchase and delivery process.

Sell something and sustain!

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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It has been reported that Facebook continues to build strong engagement statistics . AllFacebook announced that the number one social network is now gathering an average of 143 pages viewed per user, every month. This represents a huge lead over other web properties.

Our family knows about engaging websites that draw us back time and time again. For the past 4-years we have gathered online to share gifts and conversation for a few days before Christmas.

We all live in different parts of the country so we can only get together on the internet. Our family game makes us feel closer when we can’t gather in real life.

Here are the statistics of this engaging party:
… 11 players participated for 19 days.
… 789 comment visits were made to the party page
… 67 pictures where gathered from Google images where linked to the party.
… 37 videos where gathered from YouTube into the activity.

It is not possible to know the actual page views that the game creates, but we each spent a great deal of effort and time to stay engaged.

It is a great blessing that the internet has provided us the opportunity become engaged with any of our family and friends, and the latest numbers from Facebook is just one more illustration that we all want to stay connected.

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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I raised five teenagers… I know when I am being worked!

How do we reach the time-tested mom?
Mothers have a sixth sense when they are presented with a story that just doesn’t seem to add up. After years of such pitches, these women have a very polished intuition.

This is why advertisers struggle reaching these ladies on social networks. And why Baby Boomer women will give virtual gifts a very short life span.

These women have spent years providing real experiences for their families. A virtual hug is a nice diversion, but it holds no value for the serious mother who nurtures with reality.

Advertisers are learning that these experienced mothers don’t want their social walls cluttered with mindless junk. They see Facebook as a real tie to children who have left the nest and a link with old friends.

It remains our contention that REAL things are the only sustainable purpose for social networks, especially for women over 50. Marketers need to be reminded that this demographic is increasing by the millions almost daily and that women don’t need to be pitched junk when they know how good the real thing is…

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PartyWeDo
The AlbinoPhant Creators
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We each understand that family and friends scatter over time. Some move on to other opportunities and sometimes outside circumstances require a change in local.

It would certainly be more convenient if everyone stayed in the same community, but people leave, making distribution between them harder.

There was a time when distribution simply meant walking across the street or just driving a few miles to make deliveries. Sometimes that still works, but for many it doesn’t fit, so the traditional distribution method fails.

Distribution companies have adapted to this human dispersal and have created some great solutions. Some solved the issue for packages and others for written messages.

Today we can choose many package delivery options: Peddling messengers, a postal carrier, a brown truck or an overnight airplane.

The computer has really made an impact on the distribution system, particularly the written message. Even a letter seem as slow as a snail in today’s delivery systems.

Enormous effort has been made to make computer messaging more engaging and fun. New internet tools have bridged the distances and connected dispersed groups like never before.

But package delivery is harder to make fun, because it is so utilitarian and wrapped in many necessary efficiencies. Fed-ex is not responsible for fun, they are focused on; “when it must get there overnight”… We don’t expect fun in the package delivery business.

We may never be able to make the actual package distribution process into a memorable experience, but maybe we could make the delivery of a package more anticipated by recipients. Maybe we could contribute to a memory of something fun, when the Fed-ex guy shows up at the door. It may be possible to melt away some of the distance, at least in a virtual way.

Heck… We have millions believing that they are good farmers and powerful gangsters when they are on a computer in a virtual game…

If we are creative in our package distribution process, then we can find a way to make each delivery become more fun.

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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This has been an interesting year for the rambunctious infant business, Facebook. Like any two-year-old they have moved everything in the room up at least one level.

When a toddler comes into our house we immediately move up the knickknacks and put the door locks on the cabinet doors. If we don’t, they would be into everything!

Facebook has moved from crawling to sprinting around our internet houses like a whirl-wind. And this growth spurt has caused some growth pains for many.

But like any birth date, we should celebrate what has been accomplished in the last 12 months, and then look forward to what might be ahead.

Nick O’Neill of AllFacebook said it best: “While the past year has been a bumpy one, hanging on to the rocket that is Facebook has no doubt proven to be an exciting ride”!

Happy Birthday Facebook…. We should throw you a party…

Maybe a huge gift exchange? I know of an application that would be just the ticket!

And it is on Facebook….

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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Marketing Trend reports continue to suggest that online retailers have a huge opportunity to use social networks as a sales channel.

Most of these internet retailers are attempting to use traditional advertising methods and static pages to reach out to the connected-groups on the web. This approach has yielded a mixed result, due to the unique nature of social network usage.

In one trend report the author suggested that…“A critical challenge remains the ability to effectively harness the marketing intelligence inherent in the way people communicate and interact with one another through the digital medium and make it actionable”.

Since most of the social web is built as a mimic of social interactions from the real world, we might find an actionable e-commerce solution the same way.

We know that people purchase things for each other desiring to ether give support or to build up a relationship. The act of delivering the item carries the non-verbal message that someone cares enough to sacrifice money, thought and time for someone else.

When this delivery is completed in person, the added verbal communication, facial expressions and physical contact reinforces the message. It is hard to beat going to Target, wrapping a gift and then showing up on the doorstep of someone you love.

The disconnected nature of e-commerce takes this physical interaction from the process, loosing some of the impact of the message.

Social networks and e-Retailers are trying to find solutions to this disconnect, and they will eventually find a good mimic.

The answer will come as we apply more of the product distribution activities we use in our real social life to the process.

Any great ideas?

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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The bell rings and you swing open the door to reveal the smiling UPS driver, holding an Amazon box… Your birthday present has arrived…

This same story plays out millions of times a year with little fanfare or personal impact, because UPS isn’t tasked to deliver personality, fun or Love. They only distribute the box, get a signature and then move on down the road.

The UPS distribution system is a marvel of good logistics and great efficiency, but they deliver boxes… not love.

Many of the items that the UPS driver handles are expressions of love, sent by family and friends to support important life events. UPS simply becomes the intermediary in a process that would have been more personal, if the parties had lived closer to each other.

When it comes time to give a birthday present to a distant friend, we shop with love and thought. We wrap the gift with bright paper, a bow and some ribbon. Then, because we must ship, the gift is placed in a plain box and given to UPS.

What would happen if we could insert some of our personality and love into the gift distribution process?

Maybe we could require that the UPS driver wear a party hat or sing a short birthday tune when the door opens?

When the day or event is special, we should find ways to deliver our love and our personality to support UPS in the package delivery. We could do better for those we love, and make the delivery a part of a memorable process.

What could we do to help UPS deliver the love?

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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I got a tip from Itamar Kestenbaum, a social media expert, that Twitter was being used to send real gifts between users.

Mashable ran the story of five Twitter applications that provide ways to share real gifts through network connections.

As I looked over the report, I was struck with the very limited gift selections. We would hope that selections might increase over time, or maybe the author was just looking at a sampling of the gift offers and they really do have more items on the shelves.

To illustrate what I am saying, here are some of the quotes from the article, where a product was mentioned:

“Love Hearts and strawberry lip gloss the current most popular items…”
“…if you’re looking to send a Twitter contact a Whoopee cushion, or a badge that reads “boob inspector” then this is your new go-to place”.
“…with books and movies catering to any get-well soon scenario, flowers and food great for thank yous, and comedy tees”.
“…mostly cookies and a few geek-themed phone cases and jewelry”.
“…as well as some sexy underwear”.

As I examined these sites, I found them to be mostly a way around getting the delivery address directly from the user.

Whatever the case, we appreciate the trend toward actual gift commerce coming from social networks. We know that Facebook, Twitter and other networks can facilitate the sharing of real items and will eventually be the go-to locations for gift giving.

We are happy to be involved in the leading edge of this emerging market.

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

Share Billions are spent every year to show Mom our appreciation.
This year Facebook games are adding to the support that Mother’s receive.

A report in the blog Inside Social Games from TrialPlay states that; “...in the days leading up to Mother’s Day, promotional offers dubbed “gifts for mom” generated around $1 million per day”. This revenue was mostly from the sales of flower deliveries for Mom’s around the world.

This action was a boost of 5 times the action usually received by game developers, as they capitalized on our love of Mom…

Two things are interesting about this information: First, it points to the value that we place on supporting each other with real gifts. And second, it demonstrates that we will use online tools to share in the giving process with each other.

And where do most real gifts get distributed within families? At parties and other social gatherings. In fact, there was almost $15 billion spent on real gifts this last Mother’s day and nearly 20% was spent online!

The value of the new internet tools like Facebook, Amazon and PayPal is that we can use the web to share gifts with even the most distant loved ones. We can celebrate important events right from our computer.

These are the reasons that we have such a passion for online parties…

We see a day when everyone can use this platform for sharing real gifts on Mother’s Day and every other important holiday. We are happy to be on the leading edge of this effort.

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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I have the perfect used car sales pitch: Get a Chipmunk with every car sold!

Tessa, our middle daughter, just purchased a used car. On Saturday it was sitting in our driveway when I saw a chipmunk heading toward our front deck, from under the car. This was strange, because we don’t have Chipmunks in our neighborhood.

I went back into the house and told everyone of the Chipmunk sighting and I was given a lot of grief (Old age jokes, memory-loss and what are you smoking).

Then on Sunday morning Tessa witnessed the same thing and validated my story (They should never doubt dad!).

That afternoon, the family dog (A Dachshund, with a nose for trouble) started sniffing frantically under the front cowling of Tessa’s car. When I popped the hood and looked down in the radiator cavity, I had a face to face encounter…. Alvin the Chipmunk was living under the hood!

After the initial discovery, I have been unable to find our new friend again. I think that the Chipmunk has made Tessa’s car his motor home, so I will need to do more investigation and find him another home.

It is interesting to note that in Oregon it is against the law to transport wild animals, so Tessa is basically a lawless animal smuggler every time she goes to the store.

I bet you didn’t get a free Chipmunk with your last used car!

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists