Where To Make Money In Social Networking

Traditional brands may get the last laugh--or at least the richest laugh--on social networks. So far, companies such as Facebook and Twitter have attracted all the buzz for creating social networking. Making money, however, has proved more challenging. Using Facebook and Twitter is something like hosting a big cocktail party, observes Brett Hurt, founder and chief executive of Austin-based Bazaarvoice, which offers user-generated review platforms and expertise to other businesses. "But nobody shops at a cocktail party." Consumers, however, do shop at old-fashioned branded retailers--say anything from Office Depot and Staples for office supplies to Macy's and Nordstrom for clothing. And when someone wants to buy a product, they often like to turn to their friends and colleagues for advice. "Where the action is happening in social networking is on the brand sites," contends Hurt...