Nowadays we observe tectonic shifts on social platforms. Some of them struggle with society; others rise up and fade, trying to be more open or restrictive. Apparently, the economic model of social media should be modified. The direction of these changes is getting clearer.
What is wrong with social media today?
With an immense base of profiled user data, social media have built their business model on a highly targeted advertisement. Targeting used to benefit both advertisers and platforms. Companies just reaped customers who were ready to buy and platforms didn’t have to share their income. This has resulted in some consequences.
Low-quality content overflow
While traditional media pay their authors, content creators on social media may get their payment from some sponsors in the best case scenario. The main purpose of content is to grab users’ attention and redirect them to a media site away from the social network.
To highlight quality content we need a system, which allows users to pay for it directly. Creative and professional content producers would thrive eventually.
The number-one social media has become less social
Facebook applies algorithms to make people stay there longer and click more ads. We monotonously scroll feeds instead of interacting with each other. For personal communications we go to other platforms, such as messengers and streams.
Intense competition among advertisers
The audience of social networks grows slower than the number of advertisers. It is becoming more expensive and difficult for brands to stand out using just targeting. Their attention focuses on bloggers, stars and other influencers who are able to tell great brand stories.
In a nutshell, there is a great industry with large revenue and potential, which is not for the good of its users. The audience turns out to be the product for its true customers – advertisers. The social network attracts users with the promise of good content and social interactions, but redirects them to advertisers instead.
What is the next business model?
The influencers are rising and claim their share of income. The new revenue model of social media has to involve direct payments. The new model would not complement traditional platforms, it substitutes them, as they don’t change their primary source of revenue based on targeted ads.
The next generation social media has to contain several elements of success. It has to attract young users and make them fans of the platform. To succeed in this, it has to implement most engaging forms of content, use modern technologies and attract influencers. The last element is the most important. That means the new business model has to be generous to influencers. It has to be genuinely user-centric.
Let’s take a closer look at the new business model of media and the example that illustrates it. Monoreto is the social platform which brings together all trends and applies the upcoming model. This platform is based exactly on the new principle – direct payments to support excellent content creators.
The core of the platform is content, personal communications, and instant feedback.
The platform allows to easily launch live broadcasts, create stories with photos and 10-second videos with overlaid text, and publish different types of content including photo and video. All these features are necessary to be present in a social networking site as using Social sites has become a regular activity. TikTok is one one of the most popular social sites among users. TikTok provides different features like video editors and all the things mentioned earlier. Still evolving to take it to the next level. The TikTik users are also very inquisitive to increase TikTok comments, likes and followers as it refers to more engagement and growth.
Why do users pay for content and will continue to do so?
The core of Monoreto social platform is donations. Here are the reasons why we believe in the success of this model:
People want to be closer to celebrities, bloggers, and public persons. The donation is the best way to attract the attention of the person you like. Fans may send donations to them as gratitude or a payment for some actions. During live streams, broadcasters may set price for some personal requests. This kind of interactions with influencer becomes a valuable experience.
Turn payment into entertainment. Monoreto allows to organize quizzes, lotteries, and competitions. For example, Monoreto lets users take a new look at online video contests with cash prizes (similar to the popular HQ Trivia app). Monoreto will provide these quizzes without ads and create a winners’ pot from small user contributions.
Everyone wants to be a star. Users explore the platform, get inspiration from bloggers’ success and follow their example. They want to be paid by others too. They agree with the values promoted by platform, that good-quality content and exciting communications with audience are the products users want to pay for. They start to donate themselves. The good news that Monoreto helps every active donator to be promoted this way. Accounts who “donate” likes promote their posts in the newsfeed. By liking quality content of other users, posts from active user climb upwards on Monoreto’s smart feed. Actually, this is the way for brands to interact with their audience and give information to potential consumers through their content. A business owner gets a real return on advertising investment and his money ends up going to his favorite photographer, blogger, actor, or even another business he decides to support instead of some advertising intermediary.
Why is blockchain an essential part of the new model?
There is an opinion that social networks may issue their own digital currency, which is not based on the blockchain. It is not true. The blockchain makes all the difference and actually disrupts the social media industry.
Millions of content authors receive the largest part of their income from different kinds of online media, which are more or less social. To persuade them to rely on a digital currency of a social platform is not easy. Tokens of this social platform have to be exchangeable on the open market.
For that purpose, token emission has to be open, transparent and controllable as Monoreto does with blockchain. Of course, if the application introduces its own tokens to provide users with access to a product or service, it does not have to be a cryptocurrency. On the contrary, social platform uses tokens to provide payment for a product created by its users – the content, which doesn’t belong to a platform.
With the platform-native token, the founder team and most influential users are more likely to promote the platform and drive its success. This model attracts more users to buy tokens and support platform they like. By the way, while Monoreto uses tokens for payment, the actual value of transactions is in dollars to avoid volatility risks for users. The minimum transaction is equal to 5 cents in Monoreto tokens (or more, up to donator), which users transfer with their likes.
To keep founders work for platform success, it is important to use platform-native tokens instead of popular cryptocurrencies. Standard tokens help to receive initial funds from the project community and fans. After the crowdfunding application developers are still interested in working on a project and raising the value of their share.
Monoreto developers release MNR app tokens under the ERC-20 standard. The prerequisites and milestones are described in our Whitepaper. The platform distributes tokens through smart contract. We will use raised funds to launch the platform and to develop it further, to finance advertising and marketing, and to regulate the platform’s operation. We have done a lot to develop Monoreto and are ready to launch a beta version. We welcome you to join our project as its first users and investors.
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This is a sponsored press release and does not necessarily reflect the opinions or views held by any employees of The Merkle. This is not investment, trading, or gambling advice. Always conduct your own independent research.