Social networks gather people with common interests and many people enjoy being part of a large network of friends and future friends. Social networks make an effort to promote visitors to join for them to increase their clout with make friends online publishers. These Social networks make large amounts of money from the publishers that need to get their products in front of all of these people.

This is why most Social networks provide splendid modern features such as discussion groups, video email, online social games, photo lps, challenges, and more exciting things to come. They create a virtual local mall of fun adventures so people will not only visit but stay for long periods of time. The longer a person stays on a website, the more opportunity there is for the publishers to place their ad in front of more people. This is known as the “Stickiness” of a website.

But there are other good reasons for people to use social networks as well. Networking is a means for entrepreneurs to meet prospective clients, partners, and customers in a friendly social way and this has always estimated to be lucrative. This is a lot like the reason why many companies provide tee times for their employees who are entertaining clients : it is a way to individualize a meeting during a friendly round of golf. Thus if you have a business, being socially active can make you money.

These attributes of social networking have been very successful nowadays for increasing the number of people gathering on these online networks. However, competition in this ‘niche’ is growing and will continue to grow. A new niche is needed.

Most business must spend cash not only to start up but also to grow the number of customers they have. Social networks do advertise in their infancy to gain members and this usually puts them further in the “red” until they can persuade enough visitors to join for companies seeking good advertising opportunities to pay them for the ad space. Many companies of all types commonly must spend upwards of 70% of their revenue to maintain and grow their business. If this money is paid to advertising agencies, it only benefits a small amount of people.

Enter the “monetized” social network. Since most businesses in the world are very happy if they can make a 30% profit, why not pass 70% of the advertising revenue back to the members of the social network? Base the amount of revenue each member receives on the amount of members they bring into the membership and you have a viral team of social net-workers who are being paid to increase the number of people in the network. Instead of paying for advertisements to get visitors to come to their website, the members end up being the publishers and are compensated for their efforts. Also, since the publishers who would pay this social networking site for hosting their ads is ready pay the going rate for internet advertising, both the 70% share being passed back to the members and the 30% profit for the social networking site owners grows proportionally with the growth of the membership. If you can find a social network like this, wouldn’t you rather be a member there instead of Facebook, Twitter, or Myspace who keep all the profits for themselves and take advantage of the very lucrative services their members provide them?

The business style of this monetized social network could be structured to reward those who work the hardest to bring new visitors to the website. After all, this is how money is made on the internet. So imagine if you developed methods to track both how much each member views the advertisements one specific and how many people they have invited who join the network, how this could provide basis of a commission structure that you will find fair and equitable.

Look at a commission structure in a simple database that tracks who has who and places the new people in a structure under the person who invited them. Assume that membership when it reaches this social network is free. Now imagine a common multiplication of people due to all being recognised for bringing new people. Say Joe has 10 of his friends to join and provides them with a link. These 10 friends join because they like Joe and they have common interests together. Each of these 10 friends have 10 friends who would like to join them also. Now there are 100 people under Joe and Joe is being recognised a percentage of the advertising revenue for 100 people and he only invited 10 of them. Of course, those 100 people could have 10 friends each that they invite and the variety of people now under Joe are 1000 and this continues. Joe only invited 10 but there is nothing to stop him from inviting far more and he continues to be recognised for bringing new visitors to the website. This is the real power of social networking which will dominate a fastly.

Each member is paid based on the amount of time they investin the social networking site doing the things we all do such as clicking advertisements (just window shopping), doing searches, checking our email, playing games, reaching our friends, and making new friends. The social network may provide volume discounts to its members through their publishers so the members can save money on the products they buy. Thus each member shares revenue in one case by the time they spend accessing the website. The other stream of income is from a commission a member gets for bringing the new people onto the site..

You can do the math concepts. For instance, just use 5% of the total revenue generated by Joe’s 10 (plus) people he invited himself, and use 2% of everyone they invited down to 6 levels below Joe. Using the example, if Joe’s group expanded to 6 levels, there may be 1 million people under Joe. Considering that there are over 1. 7 Billion people creating an online business and this number is increasing every day, how hard is that to trust?

Also, to get a group of more committed visitors to get involved, you give you a premium level membership to some. This is a normal business method to employ leaders who can help manage and promote the groups who will come. But instead of being free, you charge $200 USD so that you will only allow people who can plan to an idea and make a sound decision to join in that level. Right at first, you will need many of these types of people but once they have established themselves, you would close this level of membership until the size of the groups demanded more authority or training. So you compensate these special premium members with say, 20% of their directly sponsored member’s revenue and 6% of of the revenue generated by the people they sponsor down to 6 levels.

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