Monetizing Social Media

I have lost count on the number of presentations I have seen regarding using social media to market yourself, your company, your product, your pet... But one topic keeps cropping up that doesn't get answered very well. How will money be made with social media?

The latest round of panelists I saw at the Atlanta Press Club were content answering that they didn't know, but someone would figure something out. It left me a bit empty, and frankly dissapointed. It reminded me of the DotCom days. The reality is that someone is going to have to pay the bill for all the interwebs we are using. Someone... anyone.

My current theory swirls around FaceBook. Of all the media, they seem the one closest to actually translating eyeballs to revenue. My reasons are simple:

1. They have the largest, fastest growing population of all the social media
2. They have created a "platform" a place where I can go to do many different things. And it keeps expanding.
3. FaceBook allows consumers and business to rub up against each other.
4. The architecture is open enough that you can smell the commerce starting.
5. Finally, the share feature.

Of all the things that FaceBook has done, the share feature seems to me the strongest, most interesting. In the short-term, a user can share content they like and think someone else will like. But what if it got past like, and turned into want? What if want turned into buy?

Here is a scenario I can absolutely see: FaceBook Market. Here's

how it works.

• My wife is a Fan of Ulta3 (cosmetics and personal care products) - I am not.
• Ulta3 runs a promo for some thing my wife likes and wants. Rather than leaving the catelog in the bathroom with the page open to the thing, she simply shares it with me on FaceBook.
• I see it on my wall, know she wants it, and one click later - I order it.
• FaceBook has my mailing info, her mailing info and one click purchasing (which they just added). Ideally, it just shows up on my phone bill.

Sounds easy, but why wouldn't I just go to the website and order it? Because if I buy it through Facebook, I get FaceBook credits which I can use on purchases from other retailers through Facebook Market.

And what if shopping alone isn't your thing? Shop with a friend!

FaceBook already knows which of your friends are online. Instead of inviting them to yet another game of Scrabulous, you invite them to go shopping. Together, you two can offer opinions in real time to one another and recapture a little of the shopping experience we have given up by going online. Make it a shopping party, and earn even more FaceBook credits.

For those of us around long enough, this sounds a lot like America Online's model from the 90's, and it is! The difference is the time may be right to bring this model back. Consumers are looking for social connections, retailers are looking for more engagement and sales, and the platform needs a way to generate revenue. Adding commerce just closes this loop for everyone.