As part of our continuing theme this month on Social Media, today we dig into why Social Media companies are so valuable.
Why is Clubhouse a pre-revenue startup with 10 million users valued over 1 billion dollars.
Why is Facebook – what some will refer to as a simple network of 2.8 billion users valued at over 700 billion dollars?
The answer lies in the nature of the modern economy.
It used to be that in times past those with most land where the richest. This was the feudal age in the era before 1760.
Then we had the industrial age from 1760 to the 2000’s where those who controlled the machineries of mass energy, production, distribution and capital were lords. This was the age of the barons of oil , railways, steel and finance.
Then the information age came along until the late 2000’s where those who controlled the means of information exchange from computer hardware to software became the economic rulers. This was the age of software giants like Microsoft, networking gurus like Oracle, computer hardware leaders like HP and semi-conductor powerhouses like Intel.
Since the late 2000’s we have now moved into the influencer age. Where those who are able to command attention and build social networks around them have become the nodes for economic power.
The platforms that enable these influencers to aggregate human attention in exchange for advertising dollars are the social network companies.
They are valuable because they know a lot about their users that businesses, governments and anyone else who has something to sell will pay to get their message in front of these users.
The more they can get users to keep their attention locked on their platforms the more valuable they become.
As an entrepeneur you should leverage the power of social media to grow your business. In times past you would have had to get sales people to go door to door or buy airtime on cable TV. Your marketing could not be targeted in any effective way. If you were a small business you had no chance to scale your marketing.
Today with the social platforms you can quickly validate ideas, build wait lists and drive user subscriptions all from your computer and using a small budget.
When I started my crypto payments company, my first sign ups, were got through a lead generation campaign I launched on social media. I did not even have an app. But it validated the need for the service and I used this to raise funding to then build the MVP.
I encourage you to take courses on Digital Marketing and to try out the power of social media.
Work on building your page, channels and communities across the major social media platforms like Facebook, Twitter, LinkedIn, Instagram, TikTok and ClubHouse.
You can build a very successful business selling your own business or as an influencer for other businesses if you master social media.
Become a king of aggerating online attention hours. You can get paid handsomely if you do.
Adebayo Alonge 