Facebook currently stands at a market capitalization of $210 billion and Twitter at $25 billion. While these numbers are huge by any measure, to put these numbers in to perspective, their combined value is the same as Pakistan’s latest annual GDP figures. Both these social networks’ value and revenue streams rely on the hundreds of millions users regular activity on their portals. In return, users have access to this free service that helps them stay in touch with friends, families and celebrities. This seems like a trend in the internet corporation space, users are provided with a free service and corporations make millions of dollars via advertisements, using user data and other means.
Bringing power back to the people
Tsu is a new social network that is based on the premise that access to a free social networking site is not enough compensation for users who drive the value of these multi-billion dollar firms, they should get part of the revenue. Going with that line of thought, Tsu is where social networks meet pyramid schemes. Tsu claims to only keep 10% of the revenue that is generated via the platform, while the remaining 90% is distributed to the user and their friends/family.
Social Network Landscape
Tsu is a free invite-only service that aims to bring the ownership and returns of user-generated content back to the user. The idea seems pretty attractive, but is it too late for any other social network to enter the market and be competitive. The same way that tsu is trying to build out its social network with influencers and direct monetary benefits, Facebook and Twitter had their first mover advantage to pull in most of the internet-literate world on to their platforms. Users, however, are becoming increasingly concerned by the nature of targeted ads, their privacy or the amount of time that using these social networks takes. On the other hand, beyond wildly popular
What are the numbers?
The promise of revenue sharing is promising, but many people might not realize that the revenue from clicks and online ads is paid at rates lower than one would imagine due to the low conversion rates as well as just the amount of internet activity. Even Facebook with more than a billion users or Twitter with around 300 million monthly active users, makes around $5-10 a year per user.
Working with that average, making money off your social media usage sounds attractive, but making $10 dollars a year (and you can’t take the money out if its less than a $100) and focusing time and energy on tsu might not pull in the regular user.
Possible Ways Forward
The trend-setters in this direction can be the internet celebrities like Twitter accounts with millions of followers or other popular accounts on Facebook, Instagram, Vine and the likes. Part of what can make it look less than a move for pure monetary gains is that tsu also promises to share the revenues with the viewers of the content, not just the owners of it. This could mean that even fans who chose to sign up will benefit from the move.
According to Billboard.com: “Other launch partners include LeAnn Rimes, 50 Cent, and DJ Afrojack on the musical side; athletes like Miami Heat’s Luol Deng, U.S. track and field Olympian Doc Patton; and organizations such as Environmental Media Association and hospitality and entertainment company SBE Entertainment. Funding firm Sancus Capital Prive backed tsu’s $7 million funding round.”
While several initiatives have tried to replicate or derail the big players in the social media space, the ones that have been successful in making an impact have played to a niche like Snapchat, LinkedIn, Instagram and Vine, rather than aiming to disrupt the space completely. No one has invited me to use tsu yet, but when someone does, perhaps another review of what it looks like from the inside would be in order.
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