Recognizing The Social Media Business Model Challenge

This post mostly focuses on the individual as opposed to the large business.  After all, Dell just made a million dollars off of Twitter. But maybe there’s a lesson in that for us all to take…

This week, there’s been quite a kerfuffle around the Chris Brogan/KMart sponsored post deal. Of course, the Twitterverse and online sites move at the speed of greased lightning, and the blogosphere has lit up with criticisms and praise.

But here’s the crux of the problem; there’s a lot of people trying to create a business where it seems there is unsubstantiated demand.  Businesses exist where people have a need for something, and feels like a lot of people are jumping into online because they have no other options.  As a businessman, this sets off a lot of alarm bells.

After all, even at a generous CPM (Cost Per Thousand) uniques or impressions, most bloggers have a woefully inadequate audience to be able to monetize it effectively for a living in that model.

So, we’re stuck in a situation with a lot of people who want (or need) to make money blogging and really not necessarily a market demand for their services as professional bloggers (I’ve always been a proponent of blogs as adjunct to product or service; it’s worked very well for me and my clients.  Direct monetization of the blog itself is a crap shoot without a huge audience, at best, and apparently, social networks aren’t so hot either).

So I have some thoughts – and I’m probably tinted because I come from “big media” originally (broadcast TV, to be exact).

My first is to stop blogging about social media.  There’s enough of you/us.  I don’t mean that in a negative way – the market’s got lots of existing, strong players, and there’s only so many people you are going to pull from mainstream audiences talking about this stuff.  And it seems everyone with a computer and a social network account of choice is doing it.  There is only so much audience for something the mainstream has so little awareness of.  Maybe in the future, but by that time, the current players will be even more entrenched.

Your focus needs to be relevant, and scalable to other audiences.  One of the keys to the success for one of our client sites, Global Business Perspectives, is that it’s audience is older and not tech-focused; yet, over ten thousand unique visitors (sometimes significantly more) show up every month to learn about global business and listen to the podcast Beverly produces.   If you want to make a splash, hit’em where they ain’t and talk about stuff that’s relevant to a niche of the mainstream, and then tie in additional services or products that are relevant.  Sell wine. Provide translation services. Teach people viable alternatives to the volatile stock market.

Be a subject matter expert.  Urban redevelopment, dogs, furniture – know it well.  And have a passion for it.

If you’re a journalist, especially a known or semi-known one who’s looking to expand online independently, play the cards you’re dealt.  I wouldn’t go try and experimenting as Chris did with pay-per-post (he’s not a journalist, and never said he was) as part of your unique value is that absolute perception of objectivity.    Chris is our large loveable social media canary, and God Bless him for it.  Even better, before you get the ax at your paper, start blogging now, even if it’s not public, to get used to the different feel and tone.  However, you in fact have a leg up, as you have audience you can bring with you.

So a few thoughts.  I look forward to hearing your ideas or success stories of what you’ve done different online to make it work for you and your audiences.