Blogging and Social Networking
Posted by rexdixon on September 3, 2006
Well I decided to change the Technically Speaking blog to this WordPress site. I was on the blog.com site, but it just didn’t serve my purposes (the free version). I couldn’t seem to add anything to the site that I wanted to add such as links, other blogs, promotion, etc… Hopefully from what I have seen so far, WordPress will serve me better and I won’t have to change blog sites again.
I guess I should have done more research before going with a blog service. I liked the look of blog.com when I first viewed it (my sister uses it), and it looked great. I guess though she must be using some of their “pay services” to blog and have the blog look nice like her’s.
Blogging is big business, and business seems to be good for all blogging services – blog.com, wordpress.com, livejournal.com, etc… Then of course there are those blog services that are attached to social networking sites such as – myspace.com, tribe.net, free-association.net, hoverspot.com, etc… Everywhere you go on the internet in your search for something new to read – you will find a blog! Anytime you feel like you need some new friends – you can find a free social network!
Social Networking. That is a whole other article that could be written. First and foremost, none of the above services I have mentioned have really ever generated any profit. Aside from one that I know of (free-association.net), they are all in it to make some money at the end of the day. I would love to take a look at their actual profit and loss statements.
Yes, myspace.com was bought for like $583 million dollars. That doesn’t equate to any profit it has actually generated. It’s just that myspace has over 70 million users; probably closer to 100 million by now. Someone once did some math on how much each user was bought for, and using the above rough numbers it appears to be anywhere from 8.3 millon to 5.8 million dollars per user! How do you justify spending that much money on something that hasn’t generated one dollar?
I believe the people who buy the social networking sites such as myspace.com and put more money into older social networking sites (something called venture capital recapitalization; venture recap for short)such as tribe.net really need to take a look at where they are spending their money. What I am saying is – investors beware! Maybe it all lies in the smoke and mirrors presentation from each of their marketing guru’s that does the trick? I have no idea what gets into these venture capitalist’s minds (maybe lot’s of tequilla?) to spend such amounts of money on the only thing they are generating. What is that thing? — Millions of FREE loading, FREE signing up – USERS!
How does a social networking site capitalize on the great user base? From what I am seeing, it’s just tons of ads that basically are like throwing darts at a dartboard. Sometime you’ll hit the numbers you need, other times, you reset and take your next turn.
It’s the tequilla shots and free dinners! It has to be! What would inspire you to take say $70 million dollars and reinvest it into a social networking site that generates $0 in revenue? Tequilla, Free Dinners, and lots of smoke and mirrors!
I find that blogs are the pulse of our society today. What you read on a blog is probably more relevant then what you can read on the news sites that are out there. The news only reports what is politically correct, the blogs report everything that is the story and not just the one that will appeal to masses.
Social networking I find is great for just that – socializing, networking amongst people with common interests, meeting new people, etc… The things you use to do before the internet. I don’t see social networks ever generating money beyond some “click now” ads that they are littering their sites with in order to make some money.
I am going out on a limb and predicting that the next wave of social networking will have to be subscription type of services. I’ve been around this crazy thing called the internet since back in the day where it use to be nothing more then privately run BBS’ (bulletin board systems). Those (BBS’) were not even considered the internet, as it wasn’t, but that was what there was before the internet took off in mass appeal and affordability. Near the end of their run, the “good” BBS’ were all pay type of places. The ones that made any money at least.
Search the internet and I’m sure you will find a blog or social network (or 3) that appeals to your sense of purpose in life, at least Technically Speaking.