This week, News Corp sold MySpace for $35 million, a property they had purchased for $580 million. What lessons about social network best practices in this for niche social networks? Here’s my take:
Lessons – Social Network Best Practices
- You’ve got to execute better and faster than the competition. It always seemed to be party time on the MySpace site, and perhaps that was true backstage as well. Facebook was more disciplined at understanding and evolving its offerings.
- You’ve got to find a business model that works, or all that traffic you have built is for naught. It was not so long ago when MySpace was huge and Facebook was the tiny upstart.
- Various forms of advertising and sponsorship are still the most obvious revenue streams for social networking websites. After all, it is the ad network Specific Media that purchased MySpace.
What lesson do you draw from the MySpace sale?
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