Social networks operate under self directed business model, in which a social network’s members play dual roles as both the suppliers and the consumers of content. This is the major difference to a traditional business model, where the suppliers and consumers are separate agents. Revenue is usually gained in the self directed business model through advertisements, when membership and content levels are very big, subscription-based revenue is possible.
Social networks connect people at low cost; this can be beneficial for entrepreneurs and small businesses looking to expand their contact bases. These networks often act as a customer relationship management tool for companies selling products and services. Companies have started using social networks for advertising in the form of banners and text advertisements. social networks can make it easier to keep in touch with contacts around the world, as businesses operate globally inthe present situation.
One example of social networking being used for business purposes is LinkedIn.com, which aims to interconnect professionals. LinkedIn has over 40 million users in over 200 countries.Even it is brand marketing or any other social media features it has to be handled carefully without affecting the privacy of the users. Social media research could be one of the potential area to identify the prospects. Business strategies may evolve form business intelligence reports.