needadvicebadly

@needadvicebadly@kbin.social
needadvicebadly,

It’s really not that weird of a concept, unless you consider the entire concept of “value” or “worth” to be weird.

Is Apple worth 2.8 trillion dollars? Is Facebook worth 700 billion? Most of what a company’s “worth” has to do with what people think it’ll be able to do with what it has in the future.

Acquiring users is usually one of the hardest and most uncertain steps for any company, especially social media companies/projects. Once you have the users, monetizing them should be easier. The easiest model is to sell ads. It can also be incredibly lucrative if you have advanced targeting algorithms and collect accurate and high quality data on your users. Another lucrative option is to be a platform and charge 30% of everything going through your platform. In the 90s and 2000s FOSS folks were so worried Microsoft was gonna do that, they let Apple, Google, and Steam do it. Another model is to find small problems or shortcomings here and there, and solve them and charge for them. Twitter is stuck in the last least lucrative one.

needadvicebadly,

I'm not sure that's really necessarily a sign of that tbh. Answering AMA's starting with A: was pretty common on reddit back in the day.

needadvicebadly,

Social media is an advertising platform. YouTube is a form of social media that's profitable too, at least now, and it's all from ads.

needadvicebadly,

Well, TikTok is the most recent contender. ByteDance is a private Chinese company though, so it’s hard to get accurate numbers.

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