Social networking business models definition,marketing plan sample format,free download mp4 player for windows 7 - Good Point

04.11.2014
The startup was launched by entrepreneur Pooja Nath in 2009, when was she was a student at the Stanford Graduate School of Business.
Why can a site like this get funding with no revenue?  I think the answer is fast adoption (330 colleges in 2 years) and deep engagement (users spending 2-3 hours on the site per day.)  Also, perhaps, because Facebook followed a similar path.
Joining fee (one-off), Pay as you go (each time or per minute), subscription (weekly or monthly) are fairly obvious.
Expansions and upgrades work mostly with ‘downloaded software’ based communities such as World of Warcraft ‘Burning Crusade’ expansion and the gazillion that came from Everquest and Ultima online communities.
Merchandising of real life products through say, CafePress gives either the host or the member, or both, an opportunity to gain revenue from user customisable products on demand. API based sales – eBay allowed members to trade on their own sites rather than forcing them to eBay to trade.
Along with Merchandising, empowering event management (Upcoming.org, Eventfull) and the taking of ticket purchase can lead to a clip of the ticket sale from the network back to the host. SMS – offering other viral events (Idol SMS voting) or simply text messaging amongst members. Trial Affiliates – if you watch an ad, they give you a product for free or discounted, and the advertised company pays them. Virtual real estate – this will finally start to move as the Web3D takes off, Google Lively and the new layered social virtual worlds (avatars on standard web pages) are figuring it out but it’s already a nice earner for Linden Labs who make $4 million per month from Second Life real estate sales ($8m each month altogether).
Competitive advantage in the SaaS business model comes from leveraging the customer-vendor network connection to reengineer business processes and service delivery, while building a large customer base to create economies-of-scale and network effects. Network automation disrupts the value chain by automating and shifting work between the customer and the SaaS business over the network.
The network connection between the customer and the SaaS vendor creates huge economic value, but it pales in comparison to the value created when the SaaS business model scales to hundreds, thousands or even millions of customers. Unlike on-premise software, the SaaS business model creates huge economies-of-scale by servicing many customers from a single, integrated infrastructure.


The final piece of the SaaS business model puzzle falls into place when we look beyond the customer-vendor connection and consider the potential of customer-customer connections: network effects. The connection between customers enabled by the SaaS business model offers unique opportunities for differentiation. The only difference between software and software-as-a-service is that the SaaS model is delivered over a standards-based network called the Internet. When you move your software product online into a software-as-a-service delivery model it enables you to connect the product directly to your customers on the outbound side and directly to your internal systems on the inbound side. Marketing a SaaS application to SMBs is more like marketing packaged software, computer hardware or consumer electronics than enterprise software. High subscription charges or joining fees offer a high barrier to entry and therefore can reflect luxury or exclusivity.
Gives Habbo a revenue of $17 per month from 10% of their members adding up to $200million per year .
Also look at $uper Rewards – social network advertising affiliates that place ads in your Facebook games and earn you revenue. We seem to need to ask this question every couple of years, because the answer is a bit of a moving target. The only difference between software and software-as-a-service is that SaaS is delivered over a standards-based network called the Internet.
The first impact the Internet has in SaaS is to connect the customer to the SaaS business through the product.
Lower total cost of ownership (TCO) in the SaaS business model arises from the combination of network automation and economies-of-scale. Sharing, collaboration, crowdsourcing, and benchmarking offer unique differentiation over on-premise software in the SaaS business model. New business value arises from the characteristic that your software-as-a-service offering, unlike licensed software, can become a network hub that can connect any business entity, user or system it touches to any other: your prospects, your customers, your partners, your customers’ customers, your customers’ vendors, your customers’ partners’ customers, and so on all the way out to the edges of the Web.


Collectible add a scarcity and (sometimes) a whole sub ecosystem to your virtual or real world products.
Or whether its a Customer to Customer (C2C) or Business 2 Business (B2B) social network economy. It was simple enough when SaaS was merely software applications pushed through a Web browser, but now we have to contend with the cloud, mobile and even social.
Network automation enables the SaaS vendor to service not just one customer, but many customers from a single infrastructure.
Blizzard have spent $200 million since 2004 (altogether, not yearly) on World of Warcraft and make $1.1 billion per year on their communities. Recently, Scott Maxwell of OpenView partners sparked an interesting debate on the topic on LinkedIn that got me pondering it again.
With each new customer added, the average cost of operating that infrastructure is reduced for all. The new widgets that can be added to anything from blog posts to Facebook profiles to wordpress plugins will increase how we show gratitude and value from donated products and services.
Peer to peer economies – host takes a clip of loans, jobs and other (non media) based economic activity between members. In these cases, the host gets a “clip of the sale” – a percentage for enabling the transactions to take place. Whereas maintaining on-premise software is labor-intensive for customers and vendors alike, the best SaaS products are deployed instantly and maintained invisibly using a high degree of network-enabled automation. This is where the revenue generated traditionally, say from Advertising, is shared back to the member who uploads the content (creates the page).



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