RedHedd.com: Social Networks and Affiliate Marketing

I find this to be so interesting. In this day and age advertising is a very expensive part of marketing a product. I never really thought of the difference between having a site that charges compared to the revenue that can be created by having a free site with web advertisements. Steve said that currently RedHedd.com does not have very many members, but is still currently breaking even. This puts things into perspective for the amount of money that Tom Anderson, the founder of myspace.com, must be making with its over 100 million members. The social networking industry has become very popular within the last five years. Dating websites were to abrasive for many but others still wanted a virtual way of keeping in touch with one another in a similar, but non-romantic, way. Steve is definitely correct when he modeled it after other social networking sites, but that his has more of a niche to it. The idea of a social network for just red heads is very interesting. It's almost discriminatory, and seems like it would be a lot to keep up with yet another network and another username, password, and e-mail. However, some people do not seem to mind. The fact that people are willing to pay the premium membership shows that it is meeting its niche, and has found a successful way to generate sale and not depend solely on the per view payments from their advertisers. This industry continues to grow, and I do not see it slowing down any time soon. People love using technology to keep in touch with people. Social networking is a fun way to meet new people in a relaxed environment with little pressure. Steve should look to create a broader network with a twist on the current concepts in order to really create a network that masses of people will want to be a part of.