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Social Network Business – 5 Things To Know

Here's how much you can earn with a social network business...

social network business

What is a social network business?

With a social network business you’d provide an online platform that people would use to build social connections with others who share similar interests, goals, backgrounds, whatever

You’d have several monetization options with this kind of business.

Social Network is one of 19 types of online business and considered a Level 5 online business, according to our framework.

How can you make money online with a social network business?

Here are the legit ways I’ve found to make money online with a social network business…

Create a Free Online Forum

Most of the well-known social networks are essentially big message boards monetized with ads.

Reddit is a prime example, co-founded by Alexis Ohanian in 2005…

  • Alexis Ohanian

  • Co-founder of Reddit
  • $8.3+ million Reddit monthly revenue

Dan Andrews co-founded the Dynamite Circle, a private community for established entrepreneurs…

  • Dan Andrews

  • Serial Entrepreneur
  • $50,000 Dynamite Circle estimated monthly revenue

Members of the DC pay a quarterly or yearly fee.

Start a Facebook Group

Colin Theriot grew his own social networks (Facebook Groups) within an existing social network (Facebook) and has monetized them in various ways…

  • Colin Theriot

  • Founder, Cult of Copy Facebook Groups
  • $20,000+ monthly revenue

Pros and Cons of Social Network Businesses

  • Quite scalable due to network effects: “the value of a product or service increases according to the number of others using it.”
  • Strong passive income potential.
  • You don’t have to create any content (the users do that).
  • Easy to sell once successful.
  • Several monetization options.
  • Usually requires a complex set of skills.
  • Can be hard to get that initial critical mass of users so you benefit from network effects.
  • Moderation headaches.
  • Very hard to compete with established players (again due to network effects).

Is a social network business a good way to earn a living online?

It’s an attractive business model but you’d need to bring your A-game and probably hire some A-players if you want to succeed. Don’t expect to get rich quick or easy.

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