Social Media Platforms - Revenue Model

The user-generated content on social platforms has created billions of dollars worth of value that gets distributed among shareholders of the companies accordingly. However, without active users who spend many hours interacting, creating content, posting, sharing, and engaging via “likes“ and comments, the platforms would not be of such value. The value is stored in the database of users, accessed by advertising companies, and exploited through product placement. The database is detailed and exact. The valuable, reliable, and accurate database has enabled highly niche and specifically strategic advertising for companies and business owners. Until now, the only source of value for social media companies remains solely in advertising. The company, the advertiser, and the users – each party plays a crucial part in maintaining a sustainable network and the growth of the platform.

The Centralized Company:

The role of the company is to attract and retain users to its platform. By working with the psychology of the user’s mind, the owners create a “free” playground on which people can share their interests and connect with their friends. By doing so, users give away their ownership of their content, thoughts, and messages to the owner of the network, often unknowingly and without compensation. The data is owned by centralized authorities and is the product of the company which they sell to advertisers, benefiting directly from their users. The attention of users directed towards advertising is the glory asset of social media companies and thus users pay with their time and attention, as well as the content they provide and distribute for free.

The Advertisers:

The advertisers are those who use social media as a means for targeting an audience, buying an organized and detailed user database, and renting the attention of the user from the centralized company. Business is conducted between the owner and the advertiser. The company sells, the advertisers buy and the users are the hot commodity product of the owner.

The Users:

Despite the users playing an important role, in the traditional social media world, only the shareholders and advertisers benefit from the value of the platform. While the shareholders and advertisers extract all the value from the platform, the users are not just left with nothing, but they are taken advantage of and leeched dry.

The feed of social media users has changed drastically over the last few years. New algorithms manipulate the user’s feed, which is no longer chronological, but changes depending on the user’s interests and behaviours, with the intention of presenting the user with more relevant advertisements based on their personal interests. The ads are getting smarter at targeting the vulnerabilities of the users and the user is no longer in control over their presented feed. They often unknowingly become consumers of thousands of ads every month, despite their reason for initially being on and engaging with the platform to connect with friends/family/supporters and share their interests and ideas peacefully. They have no other option but to accept being exploited by the platform and advertisers, or leave the platform entirely, disconnecting from their network and shared content.

SNAPY will solve this problem, by giving all contributing parties a fair share of the created value.

We put the users first and give them back control over the network and their content.

The users of SNAPY are in control of the monetary reward distribution simply by participating and voting on content with their “like“.