A faltering economy presents opportunities for social networks to become moneymakers.
There are social networks, and then there is the real world.
Where the two meet is the next emerging technology business.
The problem with social networks such as Facebook and
MySpace is twofold: They rely solely on advertising for revenues, and the
larger the network grows, the less attractive the network becomes as spammers,
schemers and assorted weirdos pile in. As one recent posting on TechCrunch
called it under the entry title of "Facebook Fatigue?": "FB began to
lose its appeal when these kids' parents joined up and started getting involved
in their kids' stuff."
The second reason has to do with the economy. When the
economy is robust and people are thinking real estate prices will march ever
higher, social network users feel better about wasting their time on the
networks rather than doing something beneficial such as figuring out how to pay
the mortgage.
But the economy is faltering, and according to recent job
loss data, the economy is in recession. With the stumbling economy, I think
there is opportunity for the social networks to move from being time wasters to
money savers. I've been convinced of this for a while, but three developments
had to take place in order to set the stage.
First, social networks needed to be created. Second,
previously unconnected parts of the business and home infrastructure needed to
be digitized and made accessible via familiar computer interfaces. Third, you
needed a financial squeeze to make consumers and business execs feel the money
saved would be worth the effort expended.
As far as the first requirement goes, there is no lack of
social networks. So far, Ning has done the best job of creating a network that is flexible
and scalable and allows the network creator to build a brand without handing
over too much control to Ning. But even if you are not a Ning fan, there are
hundreds, probably thousands, of networks from which to choose.
For the second requirement, I would point you to the recent
announcement Microsoft made in Germany
with a company (EnBW Energie Baden-Württemberg) that makes small smart power
meters. For now, home owners monitor and manage their own power consumption. It
does not require a great leap of understanding to see how a group of consumers
could form a social network to monitor their power and ask for a better deal
from the utility.
It further does not take a great leap to see how business
executives could greatly benefit from being able to measure and monitor their
energy and materials use in real time and share that information via a closed
social network within their own company.
As the economy hits a bumpy phase, it is time for the social
networks to punch in and go to work.
Messaging & Collaboration 
