Social networkings revenue plans

By Shelley Solheim  |  Posted 2004-03-19 Print this article Print

Although few attendees at the social-networking event disputed the usefulness of social networking, some questioned how these companies will bring in revenues. ZeroDegrees, which currently does not charge users, eventually plans to sell subscriptions for $10 to $20 per month per user, Jeffrey said. Organizations also can buy blocks of subscriptions, he added. Another panelist, Adrian Scott, CEO of Ryze Ltd., said his site brings in revenue through three streams: subscriptions that offer advanced search capabilities and privacy levels for $9.95 per month; classified feature ads, which cost $9.95 per month; and networking events. Ryze, which Scott launched in the summer of 2001, has been profitable for about a year now, he said. Visible Path plans to offer its software as a service, charging companies platform-licensing fees that start at $20,000 per year and scale up depending on the number of seats. A 1,000-person company, for example, would pay $100,000 a year.
"In enterprise tech, this is clearly going to be ubiquitous," Bryden said. "The question is, Who will deliver the technology, and how will they deliver it?"
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