Matthew Ingram of the Globe and Mail suggests "social networking sites are like hot nightclubs -- they become popular and then flame out as the hip crowd moves on" as evidenced by Friendster.com membership decline from its heyday...yet even though they are of questionable value as an asset, there seems to be no end of folks wishing to buy them at exorbitant prices.
Rupert Murdoch pays more than half-a-billion dollars for MySpace.com.
yahoo bought Flickr.com and del.icio.us
Viacom bought NeoPets.com
remember when... Yahoo bought GeoCities in 1999 for $3.5-billion, Lycos bought Tripod
Last week AOL announced a MySpace-style social network called AIM Pages with ability to create blogs.
But is there money to be made from those assets? How can you monetize those users without pushing them away or ruining your brand?
Social networking sites that become the "property" of a large conglomerate has little chance for survival. these conglomerate are out to make money, and once they monetize the site, it loses its value to those using the site.