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Are Twitter and Facebook doomed?

mushroom-cloud-hbI have found a great article about the foreseeable doom of Facebook, Twitter, and any other freebee social media sites. At what point is it no longer practical to offer free services (bandwidth, storage, personnel) for free with out a business plan to ensure some sort of income? Venture capitalists who back these sites like to make money, at what point to they decide that they have spent enough in these investments and bail out? AdAge has a full article on this here.

A Credit Suisse report estimates that YouTube lost almost half a billion dollars (yes, that is $500 million). That is a lot of missed opportunities. But it is as not as cut and dry as just blasting sites with advertising. Facebook has been having more success than the rest. There was minimal backlash for ruining the innocence of the site. Now things are fine, and Facebook is getting some income. How will Twitter fare? When will YouTube get their ducks in a row?

Can these social media sites get it together enough to make a profit and not lose all their followers in the process?

YouTube vs. YouTube

youtube-logo5It is amazing how viral social media can create a firestorm out of a small match. Case in point: The Domino’s YouTube video of employees messing with customers food. While disgusting and stupid (did they think they wouldn’t get caught?) it has become a very popular video. In 24 hours the video went from 20,000 views to 760,000 according to Adage.com. In the blink of an eye all the hard work of creating a positive PR front is up in flames. So what should Domino’s do then? Some say, if you can’t beat them, join them. It is suggested that Domino’s make a speedy response and post it on YouTube. They can support it’s cause by using search engine optimization and other social media such as their website, Facebook or Twitter. The question is; do you or your company have a gameplan should this happen to you?