Why it's going to get harder for Social Networks

I found this article on Techdirt that shows how even the top players in the social networking space are having trouble making money. It seems that while Myspace boasts some impressive membership numbers their revenue seems to be much less. In my opinion this is where companies like ours step in to help out. Generating offline opportunities that social network users are willing to pay for could be a huge money maker for these sites but many are too focused on ad revenue. They are going to have to drastically change their thinking if they truly believe that there are enough ad dollars out there to go around. Once the venture capital runs out I see two options for many top sites, either they get rid of all their overhead and become lifestyle business for the founders or they get innovative and figure out a way to monetize their traffic and users and ad dollars are most likely not going to cut it. More importantly investors will want to see a better return on their money and my hope is that they will seriously consider using products like Cardvio to help them make money.

- Carm