Networking Sites – How Will They Make Money?

I’m constantly getting requests from friends and business colleagues to update my contact details on services such as LinkedIn, Plaxo, Bebo etc. Although I personally find these services useful I can’t for the life of me see how the site owners are going to make money!

Am I missing something here?

For example, Plaxo now has over 5m registered users but it’s only revenue stream is charging for $19.95pa premium support which I can’t imagine many users have purchased…..

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One Response to Networking Sites – How Will They Make Money?

  1. Stacy Martin March 21, 2005 at 1:55 pm #

    I'll give you a scoop. Check out Plaxo's Web site sometime later today (3/21/05)…
    As you may know, Plaxo business plan has always been to provide a useful free service, but also offer equally compelling premium services on top of the free basic service. Our VIP Support offering has been wildly successful since it was introduced early in 2004.
    Today we releasing our Plaxo Premium Suite. This includes two additional premium services combined with our existing VIP Support offering. The two new premium services are the Plaxo Address Book Optimizer (ABO) and Plaxo Mobile Access. Both of these services have been in beta for a number of months and gone through extensive testing and user feedback.
    The ABO helps to remove duplicates quickly and efficiently, while Plaxo Mobile Access provides access to you contacts and calendar from anywhere, anytime thorugh your WAP enabled phone. All 3 services are available separately, or may be purchased together as part of the Plaxo Premium Suite.
    Plaxo's goal is to help people better manage, access, and utilize their personal information. Our Premium Suite, in addition to our other services such as our Birthday Reminder and Holiday list services rolled out last year are just a few examples with other services to be rolled out soon. To give you an idea as to what some of the other services may be, take a look at our User Forum for product suggestions.

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