The social economy: Monetising the transactional nature of social media

The value proposition of social media for the many people who spend time on such platforms has evolved from being spaces to find, follow and interact with one’s friends to being platforms that provide acceptance and a sense of closeness among strangers. This shift became more apparent in the face of the COVID-19 pandemic; with loneliness on the rise, social media has become the de facto answer to a looming crisis by offering a welcoming virtual community at one’s fingertips. Influencers and individual creators are capitalising on this shift, building businesses and monetising their followings — and brands have the opportunity to do the same with their communities. Gone are the days of finding it strange to pay for social content or ‘chip in’ to a creator — apps like Venmo and Cash App have made it easier than ever to send money in a way that feels like you are simply supporting a friend. This new era of monetising social transactions is not only for the little guys, but big brands have also entered the fray by tapping into micro influencers and leveraging social selling techniques that feel more intimate and personal, even in a digital environment. Readers of the article will gain an understanding of transactional trends that are occurring in the social space. As social platforms continue to evolve it is imperative to understand the impacts to all players to better prepare for the future.