"The social Web is turning into the merchant Web: The first company to merge the two is the real winner," says Harry Weller, a general partner at New Enterprise Associates and an early investor in Groupon. "Facebook maybe? Google perhaps?"
But with so many companies floating out there in pursuit of digital riches — did you know there are four companies with a variation of the name "my" and three with "face"? — do consumers even have time to use the services and products?"
USA Today has a fine article showing the challenges facing young social media startups and the steps they need to take to move ahead of other competitors.
Mentioned within are a number of quotes from industry observers, and a look at startups like Zynga, Bizzy, BranchOut, Payvment and others.
Tips included are for startups to:
- align with Facebook
- Make a distinct product
- grab a slice of big, established market
- diversify revenue
For further insights, watch this preso from Claude Penland from earlier this year: