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Social Networking in Global Business model... arrow

How do social networks play a role in the most beautifully designed business model in decades?

business mom

There are many reasons why web 2.0 and Social Networking has become so successful. As a basis to spawn your very own business models, there is no better than the SN to look for inspiration.

In a world where nothing can move fast enough, cars, people, news...it is no wonder that social interaction was the next to follow. In philosophical terms, to create a business that everyone wants and needs...and I mean everyone...is quite simply, of biblical proportions.

Human nature forces us to interact. We are not solitary mammals, far from it in fact. We pride ourselves in our popularity, our appearance and our ability to transgress and adapt to different environments. That environment would have been a new cave or forest in prehistoric times. In this day age it may well be a new house or town, a new country...or it may even be as extract as a Social Network website. What better way to keep in contact with your friends than at the push of a button...a button you push when YOU want. Social Networking puts the individual user in the driving seat, they have complete control over who and who they do not interact with. No more 'bumping' into unwanted friends then!?

One beautifully engineered feature of Social Network websites is their ability to expand and adapt with us. New features, tools, graphics, games...all we need to keep us occupied and on the site for as long as possible. Many of these sites even allow you to completely redesign your personal profile. What a marvelous way to express yourself...you can portray the information you want people to see in the way that you want them to see it! In reality, you could be a completely different person.

We no longer see these websites as a new-wave fad...much like when text messaging emerged into the public marketplace. These websites are merely the way many of us now contact each other. There is no more thought put into it than you would by picking up the phone. We may even favor an email message over a phone call. We are becoming ever more distant from the actual subject of what we are trying to achieve...to actually SPEAK to one and another.

There is a very key point to be made here. By distancing ourselves from the real world, we are opening up a new gateway for advantageous entrepreneurs and businesses to make money from us.

How many people who follow our articles actually know what they are all about before reading them? Very few I bet. How many people really know what to expect when signing up to a Social Network for the first time? Very few. Now...how many people actually read the terms and conditions before agreeing to abide by them? One in 14,322, to be precise. How many of those who did read the terms A) Fully understood them? or; B) still pressed "I accept" anyway? If all of your friends use it why not you? We're talking about virtual implicit peer pressure here, you have no alternative's other than yes or no.

So, what's wrong with the terms and conditions?

Usually hidden in the third quarter of any terms and conditions...is the bit they don't want you to read. Most people will read the first bit and skip right to the end. It is here that nearly, not all, Social Network websites hide a little known paragraph on how they intend to store, use and market any information you supply. Most people assume this only applies to your signup details and email address. They are wrong.

What this actually means for the operators of the Social Network is that they are being given explicit permission by you, to use any information posted on their servers for nearly any purpose they want and to actively use this information to gather other personal data about you. Now, don't go canceling all of your accounts right this second. These huge, corporately owned websites will genuinely do their very best to protect the interests of their customers. However...

The problem with Social Networks is that you unwittingly post information about yourself in messages, pictures, blogs, moods, color schemes, font types...etc. All this information is monitored and compiled by extremely large teams of specialist 3rd party companies, into a statistical profile used for marketing and surveying purposes.

There is nothing particularly wrong with what the Social Networks are doing here, but what if certain information were to get out? Where you live for example? What car you drive? What time you will be getting home on a certain day?

The main problem is those you do not entrust with your personal details. There is only one mainstream website (and I am sure you will be familiar with it) that actually stops anyone from viewing your profile before you can confirm they are indeed...your friend. Since the launch of this website many others have given the option for this in the account holder's personal settings...but the majority either do not know it is there...or do not know what it is for.

In a day and age where 1000's of credit cards are cloned every day, personal information is the singularly most important piece of data you can ever posses. It is entirely unique to you and twice as valuable to a fraudster. Is it really such a great idea to flaunt ourselves in front of billions of people? Is it really such a great idea to be so naive as to think we are simply creating a profile for those we care about to see?

This is a very, very interesting point to make. You are reading this either agreeing or shaking your head...maybe you don't even care and this is just passing your time while you wait for 5 o'clock to roll round!? Either way, it is very important to realize that you are not in control of the information you expose yourself to on the internet...and equally the information you provide. The internet is a free marketplace. You are not in control of who sees YOUR personal information on Social Networks...and by personal information, I mean everything about you. You would be very, very surprised if you actually knew just how much those at the top of these corporately/government owned and or subsidized websites knew about you...and when I say you, yes..I mean YOU...

Your IP address for example...this is the unique code assigned to any computer. Your IP address is crucial for websites to interact with you, remember your passwords, auto fill text fields etc...recently viewed pages...

Do you know how valuable that single piece of data is in marketing terms?

"In early 2008, the UK's largest telephony and internet service provider were taken to court by a handful of individuals who noticed "unusual activity" in their internet browser. This unusual activity was in the form of illegal IP logging. IP logging is very simply where your unique computer code is monitored and stored...usually for the purposes of market research."

In this particular case, the ISP (Internet Service Provider) was actively monitoring the browsing habits of their customers for marketing purposes. This is a very serious and illegal infringement of privacy and as you would expect...the ISP settled with each individual quite swiftly outside of the courtroom.

This story made national news and maybe you even know who I am talking about. The ISP would have had to settle for an amount so great that no further action was taken, with each and every individual who had noted this unusual browser activity. These figures, quite simply must have been millions of pounds...enough to secure the future of every individual in lieu of keeping their mouths shut.

The point I am making is that something as very simple as knowing what pages are most viewed by a very small percentage of internet users...is worth a HUGE amount of money in global advertising circles.

Now, imagine how much money that information is worth after you have subscribed to a Social Networking website. Not only do they know your IP address and can therefore see exactly what you look at on and off the site (remember you gave explicit permission to actively seek out additional information!?) ...but they now have your name which you have publicly declared..so is therefore not an infringement of the data protection act, quite possible your address or at the very least which town you live in, where you went to school, what you look like, what clothes you wear, your age, your religion, hobbies, likes and dislikes, who you interact with, how you talk in public forums, common interest...need I go on?

By participating in social networking, you are undermining the very laws that are created to protect you while using the internet.

These global goliath's of internet marketing have quite literally...beaten the law in respect of personal data privacy. They know this is how the future of interaction will go and they have very cleverly optimized, for their own benefit, a means of extracting personal data from each user not only with their consent...BUT WILLINGLY posting information about themselves on the internet.

Let me put that into perspective for you. The 5 main Social Networks, collectively, have no fewer than 130'000'000 (130 million) users interfacing with their networks every day. Potentially one hundred and thirty million people are submitting personalized, gift wrapped marketable information about themselves of their own accord on a daily basis.

Now that's some very clever marketing, don't you agree?

Added by: Administrator MW01

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