Why YouTube, Twitch, and Facebook will Inevitably Lose

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Behind their success, YouTube, Twitch, Facebook, and many other popular social networks are actually nurturing a free labor system to where the marginal costs of content creation is close to zero. While YouTube does share some of its money with the producers, Facebook has practically no costs associated with their published content – or how they prefer to call it, “status updates”.

If you’re a user of these platforms, updating your status, streaming for hours, or giving it your precious time every single day (don’t forget, time IS money), aren’t you curious where all that advertising money goes? With Facebook alone totalling at an astounding $45.24 billion cash-on-hand, I guess you already have your answer.

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Alternatives for social media exist of course, and in this article we’re going to explore solutions such Ghost Talk, Minds, and APPICS, along with why you should care about receiving fair compensation for your participation as a user, creator, or enterprise.

What’s wrong with today’s social networks?

If we’re looking for other social networks options, that implies there may be something wrong with the current ones, right?

This could be considered the top three of a long list of issues users are trying to ignore every day while checking their preferred platform. But the number one issue that seems to bother content creators the most is the lack of payment for the very content they produce.

Social networks are the product of media, advertising, and technology industries. Places where publishers, brands, and providers are striving to provide unprecedented reader value from content and be the destination where people can create and consume media.

This is the promise of the content economy where the central currency is linking brands and publishers.

But this is true only in theory. In practice, the opportunity of grabbing a piece of those billions of ad dollars led to strategies and tactics from the biggest players in the game, leaving the user at the bottom of the pay scale.

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A new wave of social networks

Some platforms are looking to make things right. Recently, the Huffington Post announced that all of its future contributors will be paid:

“Today, with the proliferation of social media and self-publishing platforms across the web, people have many more opportunities to share their thoughts and opinions online. At the same time, the quantity and volume of the surrounding noise means that truly being heard is harder than ever. Those who are willing to shout the loudest often drown out new, more-deserving voices. The same has proven to be true on our own platform.”

How about the readers, though? It will likely take time before the existing platforms will find the right formula and evolve into a paid-content social network. Until then, the newly developed startups are coming in with a model that’s based on the fair compensation of all participants by default.

It’s way too early to know if the new model represents the second generation of social networks destined to flush away the current leaders, but the monetary rewards they are giving its users are very real and convincing enough to, at the very least, give them a try.

Ghost Talk messaging application is looking to directly compensate and reward content creators and even the participants. That’s right! Every type of activity within the application, share, review, engagement, and original content generates Smart Coin rewards.

Ghost Talk is a fully featured messaging platform with:

  • A peer-to-peer messaging service with automatic message deletion
  • A content creation platform with public chat boards
  • An enterprise promotion platform for corporations

On top of which, a decentralized payment platform based on the blockchain is used to reward its users with XSCC tokens.

Minds social networking site comes as a platform promoting free speech. It’s easier to compare it with Twitter where everyone can freely share their opinions, but at the same time if you just want to share pictures of cute animals that’s perfectly fine. There is a place here for everybody.

And to make it censor-free, Minds comes as an open-source platform with a blockchain based reward system. Users can earn cryptocurrency by liking posts, commenting, adding content, and referring people to sign up to the website.

APPICS social media platform comes with the same features that Facebook and YouTube do, but unlike those platforms, APPICS is going to rewards users for their published content. Users will be able to earn cryptocurrency through content creation, by liking the content of their peers, or by simply spending time on the platform.

By adding up each of these revenue streams, users can form a passive income source just by casually sharing the day-to-day activities that you already do on Facebook, Twitch, or YouTube.

Do we really need a change?

This is just a short selection of social networks that enable their users to earn money based on their direct engagement. Many other models with a similar goal in mind have been developed recently, which tells us that this is not just a passing trend. Here are the main benefits pushing the market toward change:

Everyone loves rewards.

That’s as simple as it sounds. People will always opt to get paid whenever and wherever possible. The average person sends around 94 texts per day. Would you prefer to interact with your friends for free or would you rather get paid every time you hit “send”?

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This can be as easy as convincing your few close friends and family members to switch over to Ghost Talk as their main messaging app. Texting is no different, whether it’s on WhatsApp, Facebook’s Messenger, or a completely new app. Which leads us to the next point…

They’re all the same!

With Ghost Talk incorporating every major feature of the current messaging leaders and APPICS’s profile design and functionality nearly identical to Facebook’s timeline, innovation is going even further.

However, if the goal is to replace Facebook and other traditional networks, why come up with the same look and feel?

People hate change.

In order for these new platforms to reach their full potential, they need to make changes one step at a time. People just got comfortable with the current networking websites’ functionalities. Asking them to relearn everything from zero is a big ask, even with the promise of free cash.

Hashtags have the same use in Minds or APPICS as they do with any other social platform. The chat groups you and your friends share can be recreated one-to-one with Ghost Talk’s messaging app. The functionality remains exactly the same, the only thing that changed is you being rewarded for simply using the app as you’re already doing now.

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Here we are

These companies chose to flip Facebook’s business model on its head. Instead of making money off their users, they are offering you the unique opportunity to make money from social activity.

There are countless opportunities to make an income online. But this opportunity doesn’t require any change to your day-to-day online activity. While none of these sites will substitute the high-quality work that pays consistently, they can each contribute to your monthly earnings and fill in that missing gap in your budget. Which one will make it into your app stack?

All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice.