Research On Profit Model And Sustainability Of China's SNS Websites

Taking renren.com for instance to analyse the profit model and sustainability of China's SNS websites is the key point of this research.In the 1960s, Stanley Milgram who is the professor in Harvard University put forward a theory named "Six Degrees of Separation". After that, people try to prove various of practical problems in social interaction area by using the theory. The appearance of online chatting tools, alumni records, blogs and other new media, is considered to have close relationship with the theory of "Six Degrees of Separation". Especially, the appearance of social network service, made the theory so famous and popular.In China, a lot of SNS websites have been on the stage of new media's history for a very short time. And, at the beginning, the number of SNS websites' users is in a rapid growth. Unfortunately, many SNS websites fall in trouble after a preliminary development, because they cannot find a suitable development mode.The research is on the basis of the theory of profit model, and analyses the current profit model of renren.com through four spheres-profit source, profit point, profit lever and profit barrier. Generally speaking, the revenues from advertising, value-added services, profit-sharing from APP platform, profit-sharing from e-commerce platform and profit-sharing from mobile SNS platform are the profit points of SNS websites. Meanwhile, users are the basic resources of SNS websites and advertising service is the core business of SNS websites. Currently, the homogenization of China's SNS websites is in a high level, as a result, the profit barrier is difficult to set up. During the research, this article will use Various of methods, such as theoretical analysis, data collection and processing, questionnaire survey, tracking survey and interviews, to discuss the sustainability of profit model of SNS websites. What's more, the research believes that research hypotheses the profit model of China's SNS websites is sustainable gets a partial support.At last, the research considers that renren.com as a typical representation of China's SNS websites, need to pay more attention on differentiation strategy to solve the problem of high homogenizaion. The essay will also give some suggestions for the development of China's SNS websites.