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| Author: | Enders, A. (et al.) |
| Title: | The long tail of social networking: Revenue models of social networking sites |
| Journal: | European Management Journal
2008 : JUN, VOL 26:3, p. 199-211 |
| Index terms: | electronic commerce Internet Germany revenue models |
| Freeterms: | social networking |
| Language: | eng |
| Abstract: | This article follows a comparative case approach of two major German social networking sites, StayFriends and XING to answer the question of how social networking sites create value for their users and how they can capture it. A novel perspective on the value creation of the new types of businesses is developed by transferring C. Anderson's concept of "The Long Tail" to Internet-based social networks. It is especially explored how social networking sites can generate revenues through advertising, subscription, and transaction models. In addition, identified are the number of users, their willingness to pay (WTP), and their trust in peers and the platform as the key value drivers. |
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