Technology Review: Part I: The Business of Social Networks

Social Networking is arguably the biggest application on the web. Facebook, for example, attracts 300 million hits per month. However, as with so many internet startups over the years, the social networking websites are scrambling to find a business model that works. So far, this has been a challenge. Facebook, for example, is expected to lose 150 million this year. Of course, the sites are looking to advertising, but advertisers so far have been reluctant to jump in with the necessary volumes. It is generally felt, probably correctly, that user fees won't work. For something so popular, however, there must be a way. Technology Review: Part I: The Business of Social Networks