The effects of Social Media in an economy

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The effects of Social Media in an economy by Mind Map: The effects of Social Media in an economy

1. Freemium

1.1. Freemium is a pricing strategy by which a product or service is provided free of charge, but money is charged for additional features, services, or virtual or physical goods. "Freemium" is a blending of the words "free" and "premium"

1.2. By doing this they are able engage the user to their product for free, and if they would like to purchase any add-ons, they are able to.

2. Benefits

2.1. Real-time news and information discovery.

2.2. Increase website traffic, and with more people visiting these sites, they are able to make more off of it.

2.3. Exposure.

3. Positive Feedback

3.1. Positive feedback does not always mean growth, but more closely just quicker fame or popularity.

3.2. Positive feedback is important but it is not everything to base yourself off of and there are so many other important factors as well.

4. Network Economics

4.1. Network economics refers to business economics that benefit from the network effect. It is also known as Netromix. This is when the value of a good or service increases when others buy the same good or service.

4.2. This also links in with positive feedback. By seeing other people being happy with a product, makes you want them.

5. Democratization of information

5.1. Before social media, you had to pay to get your product out there.

5.2. Now that social media is around, smaller companies are able to become bigger.

5.3. This makes the barriers dispensary.

6. New ecosystems

6.1. To each aspect of social media, there are thousands of corresponding branches.

6.2. Al though sometimes we don't correlate social media with these types of terms, they are very close related.

7. International Growth

7.1. By having social media, we are able to expand all across the globe.

7.2. With this is mind, and by making connections, we are able to either get ourselves of out brand/product we are trying to put out.