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Face to FaceBook to Twitter the companies are generating lots of buzz but few bucks how can they monetize.
Their success joining us after this week's tech Tuesday.
We're pleased to have with a spread -- he is a partner at union square ventures great to see Brad thank you guys here appreciate it.
Lot of people Harken back to the days of the dotcom boom.
And some people say what led to the bus was affected -- of lack of revenues that they work.
For all the potential there that just wasn't the bottom line revenue growth are we how long do we have to wait.
For that to occurred -- that an institution like Twitter.
Well I think.
First thoughts -- important to remember that it was probably I think for years.
That Google had been in the market before they had substantial rent -- room before they even had a defined revenue model and Twitter is only about three years -- so by that measure I think we've got another year to work on it.
I do think that these businesses will make substantial revenues -- you -- think that they're fundamentally important businesses.
FaceBook I think that has 200 million users that would make it the fifth largest country in the world.
And you know any time you aggregate that number of people in one place and organize their activities you're gonna have an opportunity to make money.
-- you have put venture capital money into a lot of these social networking companies.
How anxious do you get at a time and I'm gonna use Twitter is an example.
Twitter has hit that inflection point where everybody lately is talking about it it got a lot of attention during the Iran elections which were contested -- that seemed to be the one way.
People were communicating.
Don't you need to strike while the iron is hot and they haven't yet.
I didn't answer is no.
That the the wrong thing to do is to -- is to impose a revenue model on a business that isn't native to that business.
And to not in generally what that means a slap it's -- -- and you could monetize anyone's business if you think about the number of users in the amount of traffic.
You got you know a few pennies per -- did make a fortune but.
That's the wrong thing to do it's not sustainable it tends to degrade the relationship between the users of the service in the service provider.
The right thing to do is to come up with an average advertising model not advertising saying the -- -- And come up with a business model that is native to the platform -- give you an example Craig's list which I think -- the social networking platform one of the original one.
Is the seventh largest write the English language that they've got something like forty million that's a month -- -- reported thirty million unique it's huge site.
They've run -- with when he I guess it's now thirty employees.
They -- they were struggling with -- so how do we support this infrastructure.
Focused on -- a problem that they had in the site they had real estate agents and employment agencies.
We're essentially spamming the service and reducing the quality of the service for users -- -- out.
I'll charge those people so they can't constantly re post as they're not relevant to my users and it it actually improve the quality of the service.
Google in another way improve the quality of search by adding paid search of their revenue miles the search -- do certain kinds.
Commerce searches if you're looking -- unique item if you -- -- is the part member of a battery from an old.
Wireless telephone into Google -- pop on the right hand -- for five.
Suppliers of that part.
-- organic results are generally useless and so in that way both of those companies have found ways of making money to add value to their users OK Brad.
By the way you have a wonderful poker face anybody -- Yeah probably have so many people coming to you asking for money this is one of the Lara venture capitalists countryman.
I would love to have you back to talk more could you come back and see us again patented -- Other mesmerized by that that hadn't you know we want to know when will they make money will bring -- -- back a terrific so slim.
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