Social networking:Is it all just a fad or is it a profitable business?

Social networking sites are very popular nowadays. Almost all online users, especially the younger ones, are members and users of one, two or more social networking sites operating actively. Many Internet based businesses are also targeting social networking sites to take advantage of the huge volumes of user traffic.

Social networking sites are web pages that facilitate for friendly and active interaction among members. Most social networks are Internet based and aim to provide various and interesting means on how uses can interact. Such features may include instant messaging, video calling, chat, file sharing, discussion groups, voice chats, emails, blogging and so on. The most popular social networking sites are Facebook, MySpace, Twitter and Bebo.

There are loads of different opinions to whether social networks are profitable. In my opinion you can use social networks like Facebook to enhance your own business opportunities. Social networking allows you the chance to more subtly promote your products or services through a friendly environment. By promoting your products or services through a social networking environment, it really becomes more like a matter for friends sharing insights and information with friends. It allows you the ability to approach this friendlier marketplace on an international level. Many social networks are attracting people from around the world.Finaly if you so desire, social networking allows you the ability to target in on specific groups of individuals that you think would be most interested in the products or services that you actually do have to offer.

Of course there is a big difference between profiting from Facebook and from Facebook being a profitable organisation. One of the problems I see with Facebook, Twitter, MySpace, etc is that the revenue model seems to be an afterthought. They were able to get over the hump of getting millions of users, but once they got them, they said "Now what?" and flocked to advertising.

I don't think there is one simple answer to the revenue question, but I will say this; I wouldn't worry too much about the 8 million in the "We will not pay to use Facebook" groups those same 8 million are the ones who are in the "Facebook needs to go back to the old design, or we're leaving" groups. As long as their friends are there, there is no comparable social networking site and Facebook maintains some free version or very cheap version of their site, people will stay.