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Social Commerce – The Holy Grail? January 18, 2007

Posted by Vijay in Business, Innovation, Internet, Social Commerce.

Social Commerce.. that seems to be the Holy Grail now. Communities like MySpace, Orkut etc have built huge social networks. Now how can that be monetized? Currently its only advertising and as social sites grow, the advertising largesse will get spread around.

Looking at it from an individual’s point of view, how do social networks help me… rather help us?

As an example, lets take a look at the Blog Group that I have gotten to know.. I have met people I didn’t even know a year ago … there would have been no other way to meet. As a group, we went to a play (ok the rest of the group did.. I didn’t), went to a restaurant.. so we are enabling some commerce.

Now here is a thought. Because I know person X, I would value his/her recommendation on a particular product and be inclined to buy it. Maybe the next step would be when we as a group are able to negotiate a better price with a vendor to buy something. So, suddenly this group becomes a “buying” entity with negotiating power.

I think thats a start… now how can we monetize it as individuals?

No wonder the so called social networking sites are seeing huge valuations.