Marketing on Social Networks: Friends for Sale

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The Economist:

ONLINE social networks are handy not just as a means of wasting time but also as a communications tool for business. Dell, a computer-maker, has made $3m in sales from Twitter since it started "tweeting" about its outlet that sells refurbished computers in 2007. Marketers are eager to use fast-growing networks to tout their products. An Australian online-marketing company, uSocial, wants to help them--for a price. On September 16th the firm started selling Facebook friends and fans.

After trawling Facebook for users by criteria like age, location and interests, uSocial then recommends potential friends to companies, who approach them directly. A firm pays $727 for each 5,000 users who agree to be its friend, or 15 cents each. "Fans", who merely express support for a firm, are cheaper.

It is not the first time uSocial has tried to sell the benefits of popular online destinations to marketers. It sells votes on websites such as Digg, which let people share content and vote on which articles should appear on the site's front page. It also sells Twitter "followers" (people who follow a user's updates) to companies looking for some positive buzz. Those websites disapprove. So does Facebook, which may try to bar uSocial from its service.

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This page contains a single entry by Jim Zellmer published on September 30, 2009 9:06 PM.

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