How to create a Social Network and earn money

Let's talk about Social Networks. The world is under the thumb of a new mania – a mania of Social Network. If you have Internet you definitely have started to use any Social Network. That's why this year the total number of Social Network users worldwide is more than 1 billion and continues to grow every day. Why Social Networks? Briefly - Community! People are social and they like to feel as being a part of the world. Community gives us opportunity to wider our communications and search for like-minded people or a good job. Imagine a global community of friends all over the world. Many people have several accounts on different Social Networks and spend a lot of surfing Net. So the intensity of Social Networks usage is almost unimaginable.

Here are some facts about Social Networks:

• Facebook has more than 800 million active users (on September 2011);
• Twitter has more than 200 million active users (on March 2011);
• Qzone (Chinese social network) has already 480 million users;
• LinkedIn (business-related social networking site) reports more than 120 million registered users;
• According to Social Media Today, in April 2010 an estimated 41.6% of the U.S. population had a Facebook account;
• Total number of most popular Social Networks is more than 250;
• Average one Facebook user session lasts 37 minutes; Twitter – 23 minutes;
• 36% posted content about a brand on Social Networks;
• Twitter generates over 200 million tweets and handles over 1.6 billion search queries per day.
• Facebook is supposed to generate $4.27 billion in revenue in 2011
• Twitter's ad revenue is supposed to be $150 million in 2011
• Revenue of Social network VKontakte in 2010 was $44.8 millions
• LinkedIn Posts $243 million in 2010 revenue
• The word’s biggest video site (YouTube) is supposed to generate over $1.1 billion in revenue by 2011

So is Social Networks mania good or bad? Is Social Network a tsunami, washing away other conversations? Not likely. Your real life is your real conversation. But with Social Network you can become a part of a virtual global conversation. And now Social Networks becomes the new way of conversation without borders and beyond the time. So Social Network is a turning point for creation of global community. Like the harnessing of electricity in our cities Social Network represents hope for a better future. A future where the world has a global community aimed on common problems solution.

Frankly speaking there are many different subject areas of social networks now:

• Business Network (such as LinkedIn.com)
• Dating Network (such as Match.com)
• National Network (such as Nexopia on Canada, Vkontakte for Russian-speaking world, BIGADDA on India, Qzone on Cnina, BlackPlanet for African-Americans)
• Photo Network (such as Flickr.com, Fotki.com)
• Music Network (such as Buzznet , Last.fm, SoundCloud)
• Video Network (such as YouTube)
• Blogging Network (such as Twitter, Fotolog, LiveJournal)
• General Network (such as Facebook, Myspace), etc.

A more detailed list of social networking websites can be found following this link.

Successful Social Networking site that is thousands of visits every day, powerful servers and communication channels, the vast advertising budgets and multimillion-dollar revenues (Facebook - $4.27 billion, Twitter - $150 million, YouTube - over $1.1 billion in 2011).

So, what components make up the revenue of Social Networks?

• First of all, this is selling advanced user accounts. Basic user account is free, but has some limitations, when paid upgrading to the advanced version eliminates such restrictions and has much wider boundaries.
• The second most popular option is advertising. Advertising on Social Networks can be: based on profiles, context (banners, links), branding (brand promotion), viral advertising, advice people to other (Facebook - Like), sponsorship, etc. This model of monetization was proved by a significantly higher user interactivity on Social Networks
• Social online games. Typically, the user is invited to play such games for free, however, while being involved in game play process, players begin purchasing game items and abilities to improving performance of their characters (farms, shops, houses, bars, cars –all this is limited by the developers imagination only) for real money. Properly designed game costs $ 10 000 and competent promotion can bring up to $1 million per month
• Paid services (rating, content, virtual gifts, virtual postcard). Most networks have their own paid services, offering inexpensive way to select users, or provide help in achieving any goal, such as selling something.
• Other ways. This can be sale of statistical information, creation of inter currency for which one can buy and sell virtual assets

There are nine parts of social network:

1. People and brands identification (Social marketing ability)
   • Possibility to create own Profile and its promotion
   • Possibility to make Connections with other people and brands
   • Possibility to create positive public image of people or brands
2. Presence
   • Search profile availability - for reuniting lost family members and friends
   • Network design encouraging frequent updates concerning people's activity
3. Expansion of relationships with friends all over the world
4. Reputation
   • Possibility of adding Recommendations and Feedbacks encouraging confidence
   • Voting opportunity which promotes honest ratings
5. Groups
   • Possibility to create Groups by Common interests
   • Signaling acquaintance but not friendship
6. Much easier and wider Conversations
   • Possibility to add Comments
   • Possibility to add Forum posts
   • Possibility to send Messages to each other
7. Sharing
   • Broadcasting photo and media content, talent promotion
   • Resources and games development
8. Interactivity
   • On-line communications 24 hours a day, 7 days a week
   • Huge growing number of users
9. Revenue
   • Multimillion-dollar revenues from content, advertising, and services
   • A huge and growing revenues

The process of Social Network development is not difficult. Due to the fact that Social Network is primarily a web site, which consists of several parts: Database Servers and Application Servers. The process of Social Network development as well as other software development includes the following stages of the life cycle: Analyzing, Design, Implementation (coding), Testing, Deployment and Maintenance.

The main here is the unique idea (subject area and features) of the new Social Network project which would allow attracting more people with similar interests. That is why this will require well-experienced analysts to develop business requirements and result-oriented project specifications in compliance with your needs. After approval of project specification you will need skilled developers’ team which will be able to develop this project on time and with high quality. It is very important to have a dedicated Project Manager for your tasks who will manage the project on each stage of its life cycle. In this process, it is important to find a team of highly-experienced professional developers.

It will take about 6 months and your social network will be ready! Then the process of advertising (SEO) and visitors’ involvement will follow. But we'll discuss this in the next article!

Of course the huge success of Social Networks and games attracted incredible number of people willing to make good and easy business in virtual space. But to enter into this business, it is necessary to understand all twist and turns of this industry. The number of gaming and Social Networks grows every day so the user should be surprised with something original.

It is almost impossible to generate creative idea that grabs next few millions of users without professional help. It is not enough to place the site in the Internet to start making money. It requires clear understanding of attracting visitors, promotion and maintaining interest among existing users mechanics, understanding the mechanics of motion and money withdrawal from Social Networks, a business plan for Social Networks and games.

Our company has wealth of experience and offers following:

• Generation of Social Network or online game original idea.
• Performing of Social Networks business plan and business requirements professional analysis.
• Implementation of any Social Network
• Development of any online games and applications for Social Networks
• Social Network and games SEO optimization and maintenance