Social Media needs money to survive.

Posted by PartyWeDo on Wednesday, February 17, 2010

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Facebook, Twitter and Buzz need to help social media make money…

This economy is making one thing abundantly clear… hand-full-of-money.965449

The web needs money to survive!

And this money must come from some type of sustainable payment system. Free is a great price for consumers, but it fails to pay the bills for a business, even on the internet.

In the last week I have received two emails from the internet CEO’s explaining why they must now charge for a service that was once free. Both listed current economic realities as the reason for making the change.

I am OK with this news, because I accept that everything on the web cannot be free. In addition, I don’t believe that advertising should be called upon to subsidize all of these social networks.

The idea of a free web or some type of payment system is being debated in many internet circles, and particularly as it applies to the traditional news networks. Nielsen just completed some research as to what consumers would actually pay for on the web. The results indicate that consumers are more than willing to let advertisers pay for the free use of news stories, yet they will pay for some things.

The bright spot for those who believe that you get what you pay for, is that the survey found that internet users expect to pay for movies, music, and games. So it appears that we all will pay to be entertained in the internet.

And users spend more time on sites like Facebook to share, videos, images and games; so it appears that Facebook can provide a springboard for this entertainment-paying economy.

The fact that Facebook is already monetizing with advertising and virtual goods from games and other entertainment applications reinforces the survey results… A Free platform, with Paid entertainment venues builds a great partnership.

Online party games are well positioned to be able to find a sustainable monetization structure within these social networks. Parties that offer an opportunity to purchase a real gift will benefit from the proven economy of eCommerce from the likes of Amazon or Ebay.

Time will tell if the public will begin to pay for many of the services provided on the web. But current trends and public opinion point to some great opportunities in a few niches.

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