An amazing business model for Social Network
People say social network is hard to monetize except ads. That is not true. People who solve problems make money.
An new business model emerged in China which is “Knowledge Economy”.The company called Fenda created 2 billion revenue in the very first month after launch. It is a UGC platform where user pays money to ask, earn money to answer, pay a little to listen to answers to interesting questions.
As a new UGC social network without user, content nor brand, what makes this platform grows so fast and earn such amount of money?
Fenda’s success is because they are trying two problems：Price content and kill information overload.
Internet used to be a world without price tag. Everything was free in the beginning because sharing a copy costs zero through cyber: article, picture, music even software. However the free policy means people doesn’t know how to price things in the era of Internet. We can see now those officially produced content are priced in all kinds of content platform. Music on Spotify, movie on Netflix for instance. But according to content made by individual user, we still don’t have a way to price them. Fenda is just doing that. Letting people price themselves. A good price will result in a satisfied answer from a trustable people.
Information overload is ubiquitous now. Too many content are forcing by ourselves to consume. In another word we are submerged by the information stream and we have to spend multiple times to find something we exactly need. The content are not listed by the will of us but by the time they were published instead. Disordered to me means ordered by someone else.Too many disordered information results in information overload.
Fenda is doing really well to put things in order in a new way. To let the asker price the value of the question. It gives the content a tag of trust by the accepting of a price. It is clear and recognizable. The cyber world covers so many tags people use to recognize things. We use those trivial tags to value things. Once things are priced directly, we don’t need those tags any more. How efficient it is ! Moreover pricing make things limited. It decrease the quantity but increase the quality of the content. This eliminate information overload in the end.