One question that concerns the current crop of Internet companies, is how to make money. Astonishingly, many of the most well loved "web 2.0" style social networks have neither a business plan, or any immediate reason to exist. The answer usually given is to start advertising. This is supposed to be the classic way to turn visiting popularity into revenue. But even before financial conditions got rougher, most insiders reckon advertising on the web is failing to deliver.
It appears that the American Democratic President in waiting, Barack Obama, has now created another very effective model - if you need money, just ask for it.
If Hilary Clinton had raised $55 million in one month without hosting a fund raising event, many would be looking for some type of misconduct. However, Mr Obama raised vast sums regularly throughout his recent campaign, and no one thought anything of it. Perhaps because blacks have no stereotypical affinity to money and business, his astounding fundraising skills are ignored by the media.
Months ago I saw a video of Obama giving a talk - to Google. In fact he hit the red hot button issue of network neutrality - something that will determine how and if Internet companies can stay in business over the next decade. A deeper examination of Obama and the amazing money machine points out what a good match he is with Silicon valley. There, a young guy with little experience but a strong sense of direction is a wholly positive thing. From then on, the recognition that social networks are the best way to grow a campaign and raise money seems to have cemented this relationship. As is often stated, Obama raises money not from a handful of rich power brokers but from many small donations. Americans voted with their wallets to empower the verbally resplendent Senator for Illinois.
The relationship between political expression, social networks and fundraising may be self sustaining over the long term. Just as a direct charitable appeal is the most efficient way to convert concern to action, single issue politics can clearly do the same - while clawing some power away from central government.
3 comments:
I started to teach my daughter about business recently. She asked me a question that kind of left me stumped: "How does Facebook make money?"
chalk up another unexpected consequence of the Internet and another good reason why it will have to die
and the answer to a child's question 'How does Facebook make money?' is some that some things in Life are worth more than money - people's personal data for instance
As you say, advertising becomes less and less effective. To my shame, I only recently realised that a cartoon site I like Questionable Content is supported by advertising. Browsing with FF and Adblock Plus, I'd never seen the ads...
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