In an attempt too boost revenues, MySpace has revealed its plan to charge fees for those people who will use applications and add-ons. While this plan may seem like a money-generating marketing scheme, the question still remains, “Are the people willing to pay for this?”
In an attempt to increase it profits—especially in this trying times when most advertisers are cutting costs due to global economic slowdown—MySpace will provide online members with virtual gifts, design, and layout which can be used for their accounts to make these look more appealing.
Some experts said that social networking sites are now experiencing declining advertising revenue because most companies nowadays are implementing contingency plan which includes cutting advertising costs.
During Web 2.0 Summit held on November 5-7 in San Francisco, California, MySpace chief operating officer Amit Kapur told the audience that his company is planning to introduce a service that will provide people with applications and add-ons, which of course, as any profit-driven industry would do, comes with a charge.
According to Kapur, virtual gifts and Christmas page layout will be made available to the site members.
Facebook, another popular social networking site, has been rumored to take the same steps done by Myspace. And as expected, online community will do the same to boost its revenue.
While some critics would immediately consider this move as a desperate attempt of social networking sites to profit more to its online members, company officials believe that this marketing plan is viable, adding that people are willing to pay for phone application, and there is no difference with this plan.
Related posts: