This post was written by Mirna Bard, a social-media consultant, speaker, author and instructor of social media at the University of California at Irvine.
SmartPulse — our weekly reader poll in SmartBrief on Social Media — tracks feedback from leading marketers about social-media practices and issues.
Last week’s poll question: Would you pay a monthly fee to use a social-networking site?
- I would rather delete my account than pay a service charge — 58.49%
- I would pay only if I was using it for professional/business reasons — 28.30%
- I would need my network to introduce some extra features to make paying the fee worthwhile — 9.97%
- I’d be happy to pay, if the fee was reasonable — 3.23%
Many studies are detailing the rapid growth of social-network use. Is there anything that could bring this trend to a half? If this week’s poll numbers are any indication, social networks imposing a fee might just do the trick. A majority of SmartBrief on Social Media readers say they would rather delete their social-networking account than pay a service charge.
I asked readers if they would pay for social networking only out of wonder. I was interested to see how hooked people were on their favorite social sites, and if anything would change their online networking and relationship-building habits. The answer is very apparent. But I would still be curious to see if many would stick to their guns if social sites were to start charging tomorrow. I may be speaking for myself, but I believe many of us have built such great personal and professional relationships online that it would be too difficult to delete an account and walk away.
For years, I’ve been hearing that some social networks are considering minimal fees to monetize their sites, but I have yet to see that happen. I’m guessing these networks realize a premium model does pose many challenges, such as losing users to free sites. For the sake of SmartBrief readers, businesses and everyone else who is social networking, let’s hope none of our favorite social sites start charging.
How likely would you be to delete a social-networking account if a site starting charging a membership fee? What would make you stick around?
Twitter
Facebook
Linkedin
RSS
I agree that it would be very difficult to simply delete accounts for social networks that I have 1) worked hard to build, and 2) have become so accustomed to communicating through. I would probably agree to pay a small fee for my top services, including Facebook, Twitter, and possibly LinkedIn.
Why pay for what you can get for free?
My recent post Counting my Blessings
I am glad to see the overwhelming majority of your participants would rather walk away than take part in fee-based social networking. As a business owner, there are accounts I would probably loathe dropping if such a reality were to surface, but the concept goes entirely against my personal stance and the central theme of social networking as a whole.
What you do with your opportunity to engage friends, followers, and potential customers is based on your willingness to learn, grow, and prosper as a brand. This almost smacks as hard as purchasing followers, which is still an active practice for some online marketers.
Whatever business you attract with your online network should be earned, it doesn't matter if you use a social client or own one. The authority you gain is what separates you from your competition, and keeping a level playing field ensures that branding, at the most basic level, doesn't have a price tag attached to it.
Great response David! After all, it does come down to the value of what we are getting. As I mentioned to Pat below, LinkedIn and Twitter give me tremendous value and ROI with leads, speaking engagements and closed business as well as amazing relationships that I am not willing to drop, so I may have to pay to it comes down to it!
My recent post 5 Unique Ways Non-profits Can Utilize the Social Web
I would probably pay a small fee for Facebook unless all my friends leave. I would pay more for LinkedIn because it’s sort of an online resume and really valuable from a professional standpoint. Twitter I would unfortunately have to live without.
Pat,
I agree with you on LinkedIn. I currently pay for LinkedIn in-mails sometimes, so if it became a paid site only, I would have no problem paying a reasonable fee. Aww, I can't live without my Twitter. It's been really great for my business. So, I may have to pay for that too! Yikes!
It's definitely interesting to think about! I would say that I would not pay. At the very least, I would not pay right away, see how things transpire, and then choose based on what happened.
Luckily, although monetization of good will is tricky, it is possible, and that is what social networks have really focused on. If TV commercials are worth any money, then so are online advertisements.
As more and more net websites and networks build on top of and rely upon the APIs of big social networks, there will be even more web traffic and value.
The answer depends on what assumptions are made. If you assume that if Facebook were to charge a fee, another very similar platform would be available, for free, and that had the same or better functionality, the answer is easy; everyone moves to the next free platform. If you assume that paid platforms are the only option available, then you start comparing value for money to determine which one is worth paying for.
If you look at LinkedIn (which is now getting ready to go public), they are profitable with income coming roughly 1/3 from premium user accounts (I am one of those), 1/3 from 3rd party ads and 1/3 from premium job boards and search.
Although Facebook has experienced more rapid growth than LinkedIn, I think facebook's model is much easier to copy and replace than LinkedIn's platform which has deeper business applications and users that are willing to pay for the added services. The Freemium model with about 95% of free users and 5% paying for premium services seems to be the model that is working best at the moment.
Terrance,
Thank you for the great comment. I do agree with you — Facebook model is much easier to copy than LinkedIn, and many business professionals I've spoken to cannot live without LinkedIn, but have no problem letting go of Facebook. Thus, it will depend on the audience and assumptions made, as you mentioned.
I agree, interesting, but think seriously about how you do face to face, perosnal contact? Still the last word in reliable and effective communications. If it came to that, dropping off the network, and you have notihng as a 'backup' anyway, where does that place you with your real business? Technology is a tool, not a right, and I have a right not to use it. I pay enough for use of the 'tools' (i.e. smartphone etc.) out there, why would I now have to pay more or yet again to use the 'freeway' the tool is designed for when it's been, and being, paid for already by the 'toolmakers'? If you don't think it is, think about it for a moment longer, it really is.
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As a relative newbie on Twitter and Facebook, I'd drop out rather than pay. To me, paying for this totally goes against the grain–it's contrary to the spirit of the thing. Don't go there. Small businesses already have enough expenses with startup marketing. @amsphotos