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In all, an estimated 300 sites, including smaller ones such as Study Breakers for high schoolers and Photobucket, a site for posting images, make up the social network universe.
As quickly as users flock to one trendy Internet site, they can just as quickly move on to another, with no advance warning, according to Wharton faculty and Internet analysts.” He points to Orkut, an invitation-only service introduced by Google in 2004 that is little known in the United States, but wildly popular in Brazil, where more than 70% of its users are based.Indeed, Orkut has made Portugese a second language in its interface. S., where the service is domiciled, nobody’s even heard of Orkut.“It’s a little more difficult to build a community around a Norelco razor, but it’s possible.” Meanwhile, Gupta says, social networks have power beyond ad revenue to act as a customer relationship management (CRM) tool for companies selling products or services.“There’s a lot of focus on advertising and banner ads and the amount of traffic.
Lodish said the firm would never be able to justify costs of $70 to attain each customer. In the case of My Space and Facebook, Lodish points out, the cost of gaining new customers is practically nothing because users join voluntarily and provide their own content through their profiles.