I don’t normally make predictions but I think niche social networks will continue to grow in 2009. Unlike the generic giants like FaceBook and MySpace that had such difficulty making money, niche social networks are easier to monetize.
Social networks
Social networks exist already offline. From formal organizations such as camera clubs to loose networks of individuals with a similar interest, most of us are part of a social network.
Many niche websites were set up around these common interests and bulletin boards were established to create some limited form of dialogue. Then with the arrival of blogs, it gave a new voice to enthusiasts but the downside of blogging is that it doesn’t give the everyone an equal footing nor an equal voice. The blogger tends to dominate the dialogue.
Online social networks
With the advent of social networks, people could now voice their opinions, beliefs and interests on an equal footing with everyone else. Because it was online, it broke down barriers like distance, social stigmas, cliques etc.
The downside is that like in offline life, generic social networks have loose bonds between people in contrast to the passionate common interests that can be shared among members of camera clubs, human rights groups or ecology movements, for example.
Niche social networks
Enter niche social networks. Their strength comes from the passionate common interest of their members which binds the network tightly together. For the domain owner/website developer, it also can be monetized more easily.
In fact, niche social networks peeked the interest of advertisers in 2008 and I expect advertisers to be even more interested in 2009 as they want more return for their ad investment.
Niche social networks provide a great targeted audience for advertisers and also for companies who want to do market research or engage in public relations with their customers. Given the hard economic times, advertisers will want the cheapest way to get to their most motivated customers.
Niche networking opportunities
I can tell you that even hunting around for only a couple of hours, I could find several open areas ripe for social networks. Domain names suitable for this area are out there and development, even just to a fledgling community level, could net you some good money upon sale. With advertisers interested in successful niche networks, a decent income may be possible.
Next time I will talk about the downsides of developing social network websites.
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What tools would you suggest to use. Ning.com?
Phil,
I have to say I have avoided getting into social network development so I cannot recommend tools to build such a website.
Ning looks interesting and there are also plugins for various content management systems.
Elgg at elgg.org is one I was looking at and which is free.
I should write a post about the downside of creating social networks.
thanks.
Everybody swears Ning is the best… Well, when you outgrow whatever you are using, including Ning… It will be too late to “scale up”
If you are serious about starting up a social network, you need to be in control 100% and that means getting a customized and self hosted solution in place.
Doh
Mike,
I agree. I prefer self hosted solutions all around but there are those who want their hand held and avoid the underlying complications.
Good overview. You’ve made our weekly link area on the homepage of http://www.11dnetworks.com. For those looking for a hosted solution where you can grab all your files and go host it yourself at any time, check out our product that lets you do that at http://www.3dsocket.com.
Great post. I started using twitter and I can’t seem to stop, its a great tool for communication with your blog users. Feel free to follow me http://www.twitter.com/mattwaterman