Social Media Networking (SMN) has taken the internet by storm. There are a plethora of social media platforms that are springing up everyday. For the people who are unaware about this new concept, SMN is a platform where people and friends from different walks of life and different parts of the world come together and discuss about various topics, share pictures, write articles, exchange ideas, promote products, entertain in short practically share their lives or maybe it is just a way to keep in touch. Some of the best examples of social media networking websites Facebook, Orkut, Flickr, Bebo, MySpace and Twitter.
Why we believe that Social Media Networking is a Fad and not a trend?
Youngsters and tech savvy enthusiasts join these networks and reunite with old friends, make new friends and discuss on various topics. But after a point in time the interest level in these networks fades away with lesser and lesser visits to these sites. Besides, with so many forms of social media popping up, people tend to join every new available network and ultimately get bored with the whole concept. Also, there is always a lack of quality about what people like and talk about, which leads to declining interests in the sites. Facebook however has stood the test of the times and has come up with newer applications and ideas to keep the interest alive. Film producers and celebrities have used these networks extensively to create an awareness of their products. Biggies like Yash Raj and Subhash Ghai have also joined the bandwagon. But it becomes really very difficult after a point in time to generate the return-on investment & time spent on these websites. Although it is argued that the these platforms need to be looked at as a form of awareness creating platform rather than a return on investment, it does become important for any business to make sure that the amount & time on promoting its product online generates reasonable moolah.
A Social Media Network always does help in forging strong relationships and could be an invaluable tool for a PR firm but it cannot validate the returns on investment. For these reasons it becomes very important to note that the social media networking would soon be forgotten form of marketing and would just become a form of entertainment.
Below are the reasons why Social Media Networking is not a great business to invest in.
It lacks the advantage of getting repeat business.
The barriers to entry in this industry are very low. Almost anyone can start a business around this concept.
Although there is brand awareness, the brands lack well articulated positioning in the minds of the consumers.
Only a few websites like Twitter have been able to position itself in the minds of consumers.
Every new form of networking idea can give a potential competition and blow to the existing czars of networking..
One who is involved in the business of social media networking would not be able to increase its pricing for the consumers with rising inflation due to intense competition.
No one knows how this platform would evolve tomorrow and how the technology would change. It is difficult to predict. For example no one knew some years back that blogging would become a potential revenue generating tool and a tool to spread news at lightning speed.
Every new form of networking idea can give a potential competition and blow to the existing czars of networking..
One who is involved in the business of social media networking would not be able to increase its pricing for the consumers with rising inflation due to intense competition.
No one knows how this platform would evolve tomorrow and how the technology would change. It is difficult to predict. For example no one knew some years back that blogging would become a potential revenue generating tool and a tool to spread news at lightning speed.
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