socialmedian: 5 Business Models for Social Media Startups

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5 Business Models for Social Media Startups

Source: mashable

Jul 14, 2009

Summary

Jun Loayza is the President of SocialMediaMarketing.com, a company focused on building social media campaigns for companies. He is also the co-founder of Viralogy.com, which measures and ranks your social influence online. He loves to meet other young, motivated entrepreneurs, and can be reached though his personal blog.

During the first Internet boom, the most common business model was probably, “get a ton of traffic, then figure out how to make money” — which savvy readers will note isn’t a very good business model. Often, the way those businesses attempted to make money on that traffic was to use display or text advertising. Making money from advertising is still possible, but it’s no longer as easy as building a site and putting some ads on it. Fortunately, there are a number of business models to choose from.

Today’s social media startups are finding unique ways of generating revenue from the very beginning. Here are a few of the revenue models that they’re using and how you can apply them to your company.

1. Freemium Model