Customer Reviews

The Social Network Business Plan: 18 Strategies That Will Create Great Wealth

5 star:		(49)
4 star:		(8)
3 star:		(2)
2 star:		(2)
1 star:		(3)

 

 

I got this book because I have been struggling to grow an online community for the last year. I've found that the technology is pretty straight forward. However, few books speak to three essentials: 1) delivering benefits and wealth to community members, 2) sources of revenue for the community developer besides advertising, and 3) how to actually grow the community. David Silver's book deals very well with the first two only. That's why it is only rated 4 stars.

Anyone who is attempting to improve their social network or to start a new online community will benefit from David Silver's book The Social Network Business Plan: 18 Strategies That Will Create Great Wealth.

Don't be turned off by the title. This is not a book about technology. Instead it deals with the issues and challenges that need to be addressed to build and maintain successful online social networks from the perspective of an investor. "Wealth" is broadly defined not only in monetary terms, but also in user benefits from helping companies and government to provide better products and services.

My Review From The Trenches

My review is through the lens of someone who is trying mightily to build an online home remodeling community, Millennial Living, using the content management software platform Drupal. Besides maintaining the site, I spend time thinking about ways to grow the community and produce content. Since time is precious, I am always trying to learn more about social networks at the least cost. David Silver's book helped a lot.

How To Read This Book

First read the book from cover to cover. It's especially important not to skip the Introduction. I did and I was totally lost in Chapter 1. The introduction spells out the author's philosophy and defines important concepts like "recommender websites" and communities.

Silver defines "wealth" in two ways. The first is from the perspective of an investor. This might trouble those who run or are contemplating building a non-profit online community. Don't let it bother you. The reality is that we all have to make a living, and the expertise and effort to create value and benefits for the members of a community takes money.

There is a second aspect of wealth creation, according to Silver. This wealth is the benefit members receive from achieving the fundamental goals of the network, besides fellowship and social interaction. For example, companies that rely on the community for business and don't have to advertise can pass part of their savings to members. In addition, vendors would be able to design and offer better services and products by understanding the needs of the community. I found this compelling and especially relevant to why many of us are so interested in social networks. In my case, it is to reduce and ultimately eliminate the pain from remodeling and decorating.

What's Good About The Book

The book's approach to launching and sustaining social networks is to get away from the advertising model that so many social networks use today. Think Facebook and MySpace and perhaps your own community if you use Google Adsense. When I came across this passage, alarm bells sounded since I use Adsense on my site. Of course the 18 ways of generating revenue recommended in the book offered some alternatives and food for thought, but they take a lot more work than using Adsense. Social network sites, my own included, need to diversity their revenue streams to grow.

The most important aspect of the book deals with user-generated content. Silver advocates "slicing and dicing" anonymous user content that discusses products and services and creating reports for industry, companies and government. His reasoning appears sound, since most companies would prefer dealing with a specialized community over advertising to the masses. Personally I don't see any harm in this as long as users are told up front that this will be done and how they would share in the benefits.

Chapter 4 is an important chapter. It provides three great examples of online communities that are relatively successful and are using many of the strategies Silver advocates. These companies include:

Sermo.com a community for physicians to discuss real live cases and other issues of concern with their colleagues.
Patientslikeme.com- a community that helps people deal with serious illnesses.
Hystersisters.com- a women only community for those who have had a hysterectomy or are contemplating one.

References to these websites are invaluable. They allow you to visualize how the strategies could be employed in your community.

The book also provides examples of social networking sites that could be started. This might be good to jump-start your brainstorming sessions if you are looking for ideas. In addition, the book provides proforma incomes statements that go with the communities. The financial statements give you a feel for what it takes in terms of effort and money to grow a community. Although the numbers should not be taken literally, you can get an idea of where your effort should be directed and what an investor's expectations might be.

What The Book Lacks

The book assumes that there's a need for the community to begin with and that you can get people to sign up as members. It is short on specifics on how to go about this, so you have to look elsewhere for this material. However, it assumes a great deal of effort in these areas specifically for SEO, membership recruitment, etc. The proforma incomes statements will give you an idea of how you might budget for this.

The book does not dwell on social networking software. It references commercial software offerings like Ning and Onesite. That's a result of Silver's inexperience with web stuff and the open source community, which he readily admits to. I am working on educating him about Drupal's capabilities so I expect that in his next book, he will acknowledge Drupal.

There are times when the book departs from its central message of abandoning all advertising and relying on user-created content. It also assumes that people will pay a nominal fee to become members. This is definitely not my experience so far.

My bottom line: This book will help you get your arms around what you should be doing on the non-technical side to start or improve your social networking site.

Silver may know how to make money, but this book suffers from common how-to business book flaws: terrible writing, poor research, generalizing anecdotes into global truths, unverifiable claims, broad platitudes and self obsession (he actually suggests that you email him your business ideas - his email address is right in the book!). I could deal with all that, because I'll grant that occasionally insightful nuggets appear throughout, but the title of the book does not represent what the book is actually about. There are not 18 strategies in this book, there is only one - the idea that you can build online social network sites around critiquing commercial goods and services and that data collected from that site can itself be sold. To me, that counts as 1 strategy, not 18.

Business is like anything else: if you practice, you get good at it. That doesn't mean you understand what you're doing and can explain it to others.

David Silver takes the whole social networking phenomenon apart and has fun with it all along the way.

Right now the whole game is rather new and there is a lot of guesswork about where it's going to; yet David talks with such confidence and with such clear reasoning that he appears to have been sent from the future and is here to tell us how it all will actually unfold.

You'll notice that the subtitle of the book is "18 Strategies That Will Create Great Wealth". You should know that these strategies are to bring about 18 distinctly different sustainable (and ongoing) revenue channels.

You'll be familiar with some of these channels, but not all of them, and it will surprise you to see how few of them are currently in effect. He's talking about a future that is not too far away. (You'll also become aware of some of these channels that ARE being implemented -- and how they are making money behind the scenes.)

Mr. Silver is an angel investor; a partner in Santa Fe Capital who has long been fond of Internet enterprises (he drops some very famous names in this and Smart Start-Ups).

Here he reveals various formulae that he has used over the years to determine whether he should represent a project to investors. Principal among them is an 8 step process that he sometimes calls "Silver's Law" and sometimes the "Demonstrable Economic Justification Factors". It's easy to use and is a MUST in any social site business plan to follow these steps to determine the viability of a proposed community.

Through reading this book, I got a very good grasp on the real value of social networking sites to the world, assisting all of us in leading better lives. That is on the long term view. I also got lots of ideas about how early adapters will create more communities and create great wealth for their founders.

Mr. Silver identifies these communities as "recommender communities" and illustrates clearly their value. (You get a good glimpse of this as early as the book's introduction.)

In this book, the "multibillion dollar question" is articulated: "... will the... 'brands' continue to control their customers through advertising, shelf-space management, couponing, catalogues, and web site retailing, or will recommender communities utilizing the wisdom of the crowds to vote on the best products and services actually instruct the vast number of consumers on which product or service to purchase?"

His response: "If the entrepreneurs who build the recommender communities execute their business models with elegance and efficiency -- and I will provide the best instructions for doing so -- then the recommender communities will creatively disrupt the (brands)."

Both Smart Start-Ups and The Social Network Business Plan are easy to read. It is obvious that the author loves his subject and that he loves the English language. I am glad that I read this book as I now have a much more clear and confident perception of this wonderfully disruptive force (see chapter "The Sumptuous Impertinence") in the world.

DW Locke

Having spent almost 20 years working with trade and professional associations, I have gained a deep understanding of how communities of interest are built and sustained in the not-for-profit community. David Silver's new book illustrates how to take a more proactive and entrepreneurial approach to a traditional setting and to create a new type of organization based on the use of social media tools.

Mr. Silver defines not only how to make these communities profitable but he lays out examples of industries and sectors that are ripe for attention. One of the strengths of the book is that it demonstrates the need for a viable business case and that there are multiple income streams available. It is not sufficient to simply accumulate a large audience based on a "free to use" basis and to count on click through ad revenue, as many current social network models have done. It works in the short term but is questionable at best in the long term.

The book does a good job of a.) defining what is in effect a new business model, b.) explaining how to construct this new business, c.) identify and define the revenue streams and give examples of business cases and d.) gives examples of specific vertical markets for entrepreneurs to explore.

Coming from the not-for-profit sector, I think the book has identified and defined what the future of communities, traditionally occupied by trade and professional associations, may look like if the plans are diligently executed. Its an exciting new model for creative entrepreneurs to create "social businesses' that deliver the best from the association and the for-profit worlds.

David Silver's book "Smart Start-ups" was the best introduction in print to the business opportunities open to the entrepreneur prepared to risk starting an online community. It was Social Networks 1.0. His new book -- "The Social Network Business Plan" -- is Social Networks 2.0.

The two books standing on their own are valuable reads for anyone confronting the challenges of starting a social network and needing to understand both the risks and rewards (both monetary and psychic) of such an undertaking. However, I feel that the greatest value comes from reading them both.

"The Social Network Business Plan" does not simply reiterate "Smart Start-ups". It builds on its predecessor and takes the reader from an understanding of the potential for social networks to a workable business plan for launching her own social network.

By reading both books, you can follow how David Silver's thinking and ideas have evolved in the last two years. It also allows you to project where he and social networks will be in another two years, and project how the social network that you are creating -- as well as your own ideas -- will evolve in that same period.

David Silver's enthusiasm and imagination, which drove "Smart Start-ups", again propel "The Social Network Business Plan". His experience with social networks, his relationships in the industry, and his ability to draw on the extensive bibliographies, enable him to offer insights which challenged my thinking and assumptions, and helped me to develop a more realistic vision of my network.

What you need to know if you intend to launch a social network is in David's two very valuable books.

18 Strategies That Will Create Great Wealth??? It seems to me like there are more than just 18 in the book. Mr. Silver has a brain full of ideas and I learned much more than just the 18 strategies.

As others have stated, don't forget to read the introduction. It helps setup what Mr. Silver is thinking from the beginning. These are new and fascinating ideas!!! When you look at a Facebook or MySpace site, it's difficult to soak in the opinion that they're doing it wrong. All that advertising...why? The strategies in this book take the social network website owners away from advertising and describe other ways to generate the revenue. These are ways which will build a more solid income and reputable website, helping you build the "recommender" social network of tomorrow. I would like to have seen a little more information on why the big sites (MySpace, Facebook, Twitter) are worth so much and where their income comes from.

I read this book when I first got it and thought the ideas were downright crazy! Interesting and innovative, but crazy. Maybe because I'm not at the full level to implement them all...yet [...]. I recently began re-reading the book and things are so much clearer now...maybe I'm a slow learner. :)

And not dry at all. Humorous at times, full of facts and a ton of information. The ideas seem sound and make sense.

Building a trusted recommender website is the future and Mr Silver gives many examples of what he means. A "trusted" recommender website is an important part of the 18 revenue channels. The good reputation of the recommender website will lead to more possibilities.

I think I'm still a little too excited from reading the book again so I think I'm babbling. A definite buy.

My business partner Amy and I formed an online community around our passion starting with a great deal of excitement and expectation. Our success was due to the content we provided, that is where our expertise lies. Knowing that our community had the potential to grow and provide a large revenue stream was known to us but the "how to" make this happen was outside of our experience.

Then we bought David's books, "Smart Start-ups" and "The Social Network Business Plan" and tapped into his experience, entrepreneurial expertise and studied his formulas for success. The ideas he explained were simple, clear and afforded us the instruction manual we needed. We have always been outside the box thinkers and his thought provoking ideas and perspectives gave us the knowledge we lacked and the direction we needed. With new found confidence we are moving forward, into unchartered territory again with excitement and optimism.

If you are unfamiliar with this space and need help getting your head wrapped around the strategies necessary to improve your social network or online community we highly recommend David's books.

While surfing the web looking for information on Social Network Business Plans, i stumbled onto a few passages from The Social Network Business Plan. I like the informal and personal approach that the author takes to solving the problems of Social Networks and their endeavors. Simple and to the point. Considerably helpful in structuring one's basic framework for any business plan.

I bought David Silver's book because I have been thinking of creating a social network for a while but I did not know how to get revenue out of it.

Thanks to the book , now I have a clear idea of 18 different ways to make a profitable social network, and I am sure that I am going to implement some of them to my business plan.

I have enjoyed very much the book and I found it very inspiring and I think David Silver is a social networks visionary with a deep knowledge of this business.

Due to my lack of technical knowledge I have missed a broader explanation of the different software that can be used to create a social network.

He's also generous by offering his help to anyone with a social network idea.

I think any one interested in the social network business should read this book.

Recently a friend of mine gave me a copy of David Silver's `The Social Network Business Plan: 18 Strategies That Will Create Great Wealth'.

As I started into the introduction, I knew I was in for an experience. So I entered into the journey with great anticipation and was not disappointed. Silver opens with a one sentence description of the potential for recommender communities by writing: `There is a lot of money to be made if you get a lot of smart people talking and then sell their anonymized conversations to vendors'. Seems reasonable enough.

Silver brings forth compelling concepts for leveraging online social networking communities to provide members with trusted reviews and recommendations that educate, inform, empower and equip, bringing people together in a collaborative community. He makes the audacious statement that `the synthetic currency of recommender communities will replace authentic currency' Scandalous!

Silver describes a model whereby the members provide the conversation and create the value. This is user-consumer generated content can then be monetized.

He envisions creating `online advertorials produced by the online communities and paid for by corporate sponsors.' He believes that these `consumer rating services or recommenders of products and services will `eliminate the need for finding the customer.'

Silver uses wonderful anecdotes and powerful illustrations to communicate the concept of online recommender communities and how certain communities have had strong influence `replacing gross inefficiencies of the current business model'...with the efficiencies of the recommender social network'.

Silver believes that online advertising revenue models are going to become increasingly obsolete. It remains to be seen the extent to which this theory holds true, but the current demise of MySpace.com gives credence to his premise.

Silver discusses in detail the importance of authenticity and that people are hungering and thirsty for real authentic, genuine community. He quotes from writers on the subject- that what we desire is active, authentic, participatory experiences, `personal authenticity' and a `lust for the real'. Sometimes the old way is to new way and in this regard Silver points not only to the new social networking entrepreneurs, but also draws on lessons learned from those who came before us such as the founders of COMDEX, Computerworld, Uhaul, Starbucks, Duncan Hines, Gold Bond Stamp Company, Mary Kay and other greats, who understood human nature and the desire for truth, sincerity and value.

Silver draws on ancient truths, philosophy and historic insights to bring forth his points. It's a lot to digest. But the basic element is that everyone wants to be part of a community where they can know and be known, where they find acceptance, and make a contribution and where their views are heard. You're opinion; thoughts, reviews, ratings and recommendation are welcome here. You belong! This is something we all yearn for. David Silver's book is well worth the read.