In a recent article, Michael Wolf of Forbes sounds off on the momentum of social networks like Facebook, LinkedIn and MySpace and the potential for these networks to become full-fledged businesses.

His contention is that the daily interactions of social networks’ vast memberships -- and their users' willingness to share their interests, tastes, relationships and intentions, and the massive amounts of data around users' behavior -- will eventually lead to substantial revenues and profits.¹

He further surmised that revenues will come from other avenues - not just from the web advertising standards of banners and contextual search links. No one's figured out the monetization answer yet, but it's likely to be one that takes advantage of the unique network effect and virtual interactions from the tens (and hundreds) of millions of members.

We’d be remiss as e-marketing professionals if we did not keep a close eye on the progress of social networks and the future impact they may have on our long-term online strategies.

To read the full article, click here.

¹ Direct Quote: Michael Wolf, "Will Social Networks on the Web Ever Make Money" -  Forbes February, 2009

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Denice MacDonald