May 10 2012

Consideration of Economic Factor

Depends on our project, I found some relevant business models can be taken as examples. Firstly, we can use the cost-per-click model. In other words, it is use advertisements to obtain the profits. Though, the advertisements in website as a popular method are used in all of SNS service or websites. However, it is always the most efficient approach to acquire the revenue. The advertisements can be precision because of all the information can be available in a SNS page. Also, the big user group can attract more companies to post their advertisements on the SNS website. Thus, cost-per-click model is importantly necessary for the future profits of our product.

There is an example for our project use this model. The advertisement can be clicked and get more specific information about the product. In addition, if customers cannot like it, it could be closed by the button. And, the advertisements are randomly shown.

The second model is the subscription model. There is no doubt that our project is free of charge for all the users. However, we can collect some fee from an extended profile except basic profile. Moreover, we can make this kind of fee as a yearly fee. For instance, if users need back-up their ranking results, we can sell this function or service to help them manage their contacts.

Another model we can use is the Asian model, we can sell some virtual goods, for example, your friends have a birthday, and customer can buy some virtual gifts for his friends. Moreover, we can create our special ‘coin’, and customers can use them to buy those virtual goods.

As a result, advertisement is the first choice for us to acquire revenue. As to subscription model, we can use it in the subsequent period. Basically, the subscription model needs a big user group to assure the profits. For Asian model, it also need implement based on the user group. Moreover, if we intend put the Asian model into real business, it would some specific marketing analysis or customer survey.