Business Models for Social Media Startups

I just found this very informative article by Jun Laoyza which lays out the 5 business models for social media startups.  I like the fact that the author is not pedantic about each of these models being “the way” to be successful.

Ultimately, as you are starting out, you probably have to try different models, designs and maybe combine some of them.  However, as you experiment, you would want to set traffic and revenue goals ahead of time.  Then test your assumptions with A/B testing and other analytic tools as you move forward.  Otherwise, you could be tweaking endlessly in a dead end business model instead of knowing when to cut your losses and move on.  Fail early and fail often.

Succintly, the 5 models that Jun proposed are:

  1. Freemium Model
  2. Affiliate Model
  3. Subscription Model
  4. Virtual Goods Model
  5. Advertising Model

Read the article “5 Business Models for Social Media Startups” on Mashable for the detail and the discussions.


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