Is Social Networking Bubble About to Burst???--- Naaaa....

www.technorati.com happens to be one of my hunting grounds for good thought provoking blogs. One of such blog I came across today by Mr. Andrew Froehlich, questioning the sustainability of social networking. http://technorati.com/blogging/article/is-the-social-network-bubble-about/ is the link of said blog.

However, I am not very clear, whether he aimed to write about social networking or the companies which are running social networking websites. If he aimed to write about the social networking going bust, then I have my reservation placed on his observations. Social networking has been in the practice since ages, only the tools have changed. Now we communicate at the speed of thought. In coming days, science may give us more advanced tools to connect better with our targeted audience, hear their voice and add value to their community, as has been the progress till now.

And, if he is writing about the companies in the field of e-commerce and social networking, then it is and has always been that, with all the business concepts, some companies succeed and some fail. I won’t go into the detail why a company succeeds or fails, because already a lot has been written about it. Internet based business might have seen couple of serious road blocks, but it has emerged even stronger. Facebook and Twitter were not in the scene in first internet based business bust, but does it even bother their promoters to think against this business idea? I don’t think so and many will agree. These companies are successful today and scene may be different tomorrow. They will innovate and rework their business concept and model according to the demand. Some e-commerce company will succeed and some may fail, some may change their business concept and model completely, some may move up in value chain. But it is also for sure that internet based business is going to go from strength to strength.

Now, does the revenue of around $ 2 Billion makes Facebook a $ 50-70 Billion company or revenue of around $ 110 million makes Twitter a $ 8-10 Billion company is the investor’s look out. They need to read and predict the numbers reasonable. If they are being over ambitious, then it’s not the fault of social networking as marketing communication tool or a business model. Predict the numbers reasonable and automatically the fear of business going bust will go out of window.