MySpace's New Revenue Model: Make App Developers Pay To Play

Here’s one way to tackle the “how to monetise social networks” conundrum: Charge 3rd-party app-makers a fee to pimp their programs.

News Corp.’s MySpace, which just started opening up its platform to app-makers, a la Facebook (which did so nearly a year ago) “features” some of the programs in an “App Gallery”. SocialTimes’ Nick O’Neill noticed that for the last few days, almost all of the featured apps are produced by app-king Slide, and wondered why.

The answer: They paid to be there – perhaps has much as $100,000 a week:

So how much does it cost to be featured? My sources have been pitched to at between $50,000 and $100,000 for one week as a featured application on the MySpace applications page. This is the first platform which has actively attempted to generate revenue directly from application developers. Additionally, this could be bad news for companies with application ad networks as MySpace is now directly competing with them.

Nick worries that this will pose a problem for the armies of lonely app-makers laboring away in their garages or parents’ basements. But we prefer to look on the bright side — perhaps this can help MySpace hit its awfully ambitious sales targets.

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