Glam, represented by the larger circle on the left, is a network. You’ll see clusters made up of smaller circles, representing their content areas: fashion, beauty, fashion, lifestyle, celebrity, teen. Inside each of those clusters, if you squint, you’ll see a small yellow circle. Those are Glam’s O&O (owned and operated) sites. All the many purple circles around those in each cluster represent outside, independent blogs and sites in Glam’s network. That is the secret to Glam’s quick growth without the cost and risk of doing everything itself.
Glam finds the good blogs and creates a relationship. It features good content from them on Glam and also sells ads on the blogs, sharing revenue with and supporting those bloggers. It now has about 400 publishers creating about 600 sites and Arora said that some make multiple six figures a year. They’ve fired only one.
Now that’s a great example, and shows real ROI on using social media well – the details are in Jeff’s post. The Wall Street Journal reports that even large finance portals from AOL, MSN and Yahoo are falling back on distributed blogs and websites to add more colour and flavour to their portals. Interestingly, as they say in the article:
The rules of these partnerships are also changing. In the past, the big Internet companies traditionally demanded some window of exclusivity with smaller content providers. Today, the big sites will often not only give the smaller sites a portion of the ad revenue but also allow them to work with other companies.
“The notion of exclusivity is gone,” says David Liu, a senior vice president at Time Warner’s AOL unit. Most of the smaller sites are producing original content for the portals
On a related note, Rob Paterson shares his aha moment on this, and tells us of a possible new newspaper model. Mosoci is working with a media company on their social media strategy and its what we have been saying to them for a while now. One of our recommendations to them:
Rather than thinking of taking your newspaper online, think about creating a platform where anyone can create and customize their own newspaper. Not just one newspaper – but potentially 100’s of newspapers, around different topics of interest. Local city, neighbourhood, corporation, school or any other ‘localized’ community content. You could for eg have different segments for say Bollywood, TV world, Social Causes, Artifacts, Life, Tech sort of things. Check out the Weblogs Inc model – where several blogs were created around specific niche areas – the bloggers were paid for content creation, around specific area of interest and relevance. An eg – Weblogs Inc’s business model was based on Google Adsense and Sponsored links. You already have a media selling network – that’s a huge plus. Add to that customized blogs around certain areas of interest and you have an additional outlet for monetization – google adsense, sponsored links, etc. Build on that language versions and you’ll be the only one doing it.
This example is really neat and am excited to share it with our Client. Thanks Jeff!