For many social media sites, they make their money off ads, games, and other areas that members are using constantly. For Pinterest, however, they do not incorporate all of the side ads that Facebook does, the price-per-click advertising you’ll find on Twitter, nor any of the social games that are popping up on many of the different social sites out there. Instead, they rely on a different type of model for their business.
Funds By Investors
Of course, Pinterest is also a great site for investors to get involved in. The developers of Pinterest have been gaining ground in raising investments for the business over the few years that they have been in business.
When it started out, the site was only a private use site for a few family members, colleagues, and other invite-only members. After they began to gain ground with the site, they also started to gain investors in the idea of building the site.
When the first prototype of the public version of the site came available in March of 2010, the investments really began to take off.
Pinterest has now developed into a billion dollar site, and they garner investments from companies such as FirstMark Capital, Rakuten, and several other larger investment firms around the world.
Advertising By Businesses
They do use an advertising platform on their site, it is just not in the normal way that most of us are used to being bombarded with when we visit a site. Instead, businesses or those that want to advertise on the site can easily create a profile and then post pictures of the products or services along with detailed descriptions. Users can then re-pin their posts and share things that they think their followers may like.
Several retail giants such as the Gap, Nordstroms, and Chobani have found that it’s a great way for them to show off new styles and items, as well as give a wonderful visualization of items to customers.
It’s also an excellent way to get consumers excited about an upcoming sale, event, or line coming out in their stores.
Another way that businesses are able to advertise and build up a reputation for their products or services is through “how to” posts.
Just about every category on the site offers “how to” posts which show users how to create, do, or build something. You will find “how to’s” over automotive repair that can be sponsored by different part manufacturers.
You will find “how to’s” over photography styles that can be sponsored by camera manufacturers. And you can find “how to’s” over decoupage crafts that can be sponsored by craft manufacturers.
Pinterest is a very unique social media site that allows all sorts of businesses to advertise to millions of people who love what they specifically provide.
It is also a great way for the old fashioned “word of mouth” to once again have a voice when it comes to advertising. Only this time, word of mouth can spread all around the world faster and with more momentum.
For businesses large and small, using Pinterest to build your business and get the word out about your products or services can be something you may be missing out on.
If you consider that you don’t have to invite or accept followers, you don’t have to wait for an approval process for your pins, and the fact that there are already millions of people that are looking for what you do – then any business would be missing out on a potential goldmine of getting your name and products out there.
But if you consider that none of the businesses or investors would be doing well on Pinterest without users, then it’s safe to say that the users are truly the root of any business on the site. Without the users, there is no need for companies to advertise on the site at all.
Without the millions of users and the millions of posts that happen every day, there is no need for investors to help build the site more. And without the users, there would be no Pinterest. Makes you feel pretty important as just a user doesn’t it?
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About the Author:
From central Oklahoma, Mandi Weems runs a successful freelance business that allows her to have more time with her family. A master of words, she loves to volunteer at the local schools, reading to kids, helping with extra-curricular activities, and ensuring that everyone she sees has a smile on their face. Sometimes, this involves creating some unique crafts that she finds on sites like http://www.theartfulcrafter.com/.