And The Sustainable Social Networking Business Model Is … ?

A BW Online look at social networking as a viable business beyond a few companies asks if the investments are worth it, citing skepticism over long-term financial health. Jupiter Research analyst says no one yet has come close to “a viable long-term business model for social networks.” He also sees social network users as a fickle bunch, willing to fly to the next hot site at a moment’s notice.
But Raj Kapoor, whose Mayfield Fund is among Tagged.com’s backers, looks at advertising as a sustainable model even though he told BW selling for a profit could be the best exit.

Flipping for profit, when it can be done, may be the business model that will appeal most as investors and start-ups stare down long-term reality. Only a few can win that game of musical chairs.

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