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Economic model of social network

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Trade of data

The use of these data for building customer profiles is the economic basis of social networks. Conservation and indefinite reuse of this data by the company that owns the site, for any purpose whatsoever, is included in their terms of use.

Sale of advertising space

In early 2008, in the business of domain names and websites, a social network was valued around $ 20 to $ 150 per unique visitor. In early 2008, Facebook was valued at around 15 billion dollars with 100 million visitors, or $ 150 per user.

For smaller networks, AOL bought Bebo.com, 40 million users, for $850 million. Google, Microsoft, Yahoo!, for larger, engage in a race of shopping social networking sites. Google has a social network called Orkut which was launched in 2004 At the same time, social networking is beginning to be seen as a component of Internet strategies: in March 2005, Yahoo! launched Yahoo! 360 ° and in July 2006, News Corporation bought MySpace.

Transfer of assets

A new trend for thematic social networks is to bet on the value of the site to focus on resale to generate income; advertising being only a temporary palliative, while waiting to sell the social network.

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