StumbleUpon recently announced plans to lay off 30% of its staff in an effort to drive profits.
StumbleUpon is one of the most popular social media services. Now, it is aggressively trying to turn itself into a vibrant business rather than just a popular one.
Is this a sign of the times for social networks? Or did StumbleUpon simply have some operationals issues in a overly competitive field?
Even with a handful of glossy redesigns, traffic (equalling profits) has been the main goal for StumbleUpon. What could StumbleUpon of done to drive both traffic and profits earlier in the game? Did StumbleUpon stumble in creating a viable business.
This really showcases the problem and opportunity that many social networks are experiencing. The opportunity lies in the drive of profits.
This might be the year that social profits take the front burner, where they belong. Having a shiny new toy will not matter if it isn’t making money.
Even the behemoths such as Facebook and Twitter are scrambling to drive profits through a variety of revenue streams.
Some of them will work, some won’t. They will have to be persistant, diligent and creative in how and where they try to make money; that’s just the reality of the thriving industry.
At the very least, 2013 will be a year to watch how social turns traffic into dollars.