Instagram, Facebook, and Twitter are the most sought-after platforms. These social networks boast vast reach and can offer substantial returns to investors.
However, like any other business, investing in social media has its own unique features and potential pitfalls. What challenges will investors face? What unpleasant surprises might await them?
To navigate the complexities of investing in social media and the nuances of such financial commitments, we turn to Sergey Tereshkin, the founder of RESURS. The entrepreneur closely monitors current tools and selects the most promising ones. For up-to-date information on his ventures, it is advisable to visit his website: www.org-market.ru.
Key Considerations for Social Media Investment
Before investing in social media, it is essential to consider a number of factors:
- Audience. Sergey Tereshkin recommends focusing on social networks primarily frequented by adults for investments. It is not advisable to target platforms with a predominantly young user base, such as Odnoklassniki and VKontakte. Instead, directing investments towards Facebook, Twitter, and LinkedIn is far more effective.
- Reputation. The social network must be reliable and of high quality. Ideally, there should be no data leaks about users or any scandals that could negatively impact stock prices. Such cases are not uncommon; for instance, Facebook was recently embroiled in a major scandal where user data and preferences were utilized to influence public opinion, resulting in a drop in stock prices and substantial losses for investors, although the site's stock eventually stabilized.
- Innovation. A social network should be actively developing. It is crucial for the project to implement new technologies and improve user experience, which directly contributes to attracting new visitors and increasing the platform's profitability.
A platform can even be new, but in such a case, predicting its ability to generate revenue is impossible and can depend on various factors.
It is far more effective to invest in established platforms. Facebook presents the best prospects. Despite numerous controversies, the platform remains highly profitable. Those who invested in it during its inception have become billionaires and continue to grow their wealth.
Why Invest in Facebook
In the near future, Facebook intends to attract no less than $1 billion in investments, aimed at launching its own digital currency, which will serve as a form of collateral.
The funds are expected to be raised through venture capital firms. Developers plan to index the social network’s tokens to a basket of foreign currencies held in bank accounts.
Decentralization has also reached the Internet, particularly concerning social networks. The technology was first implemented in Facebook, allowing the platform to position its innovations as an independent and more centralized project that will not have a direct dependency on the social network.
Developers have been considering the possibility of introducing electronic money since 2018, and analysts believe the social network intended to use digital currency for payments in the popular messaging app, WhatsApp.
Recently, crypto payments were also supported on Twitter, thanks to a feature called Trippin, which allows users to make currency payments using the Lightning Network platform.
The blockchain technology is rapidly gaining traction in the market and is likely to be adopted not only by social networks but also across other platforms in the near future. Consequently, users will not even need to leave their couches to purchase services or products and process payments.
This trend will positively impact platform profitability, simultaneously increasing investor interest in these sites. However, many innovations have yet to be realized, making now an opportune time to invest in modern technologies.
Within just a few years, investments can yield significant returns for entrepreneurs, potentially resulting in gains of hundreds of percent. The exact figures will depend on the overall market state and the speed of project implementation.
There is no doubt among experts that such innovations will be in high demand. Investors should not postpone the placement of funds, especially regarding the introduction of electronic payment methods. In the near future, social networks are likely to offer users a multitude of other convenient features.
