The Open Network Effect

What is an Open Network?

An open network is free from control or restriction. Individuals may share information as they wish without third party interference.

What is a Closed Network?

A closed network is governed by one or more entities that monitor the information shared.

The Open Network Effect

On closed networks, webmasters track all information posted, shared, or viewed. In many cases, networks use these findings to sell advertising based on user habits. This model enables companies to reach consumers; however, it does not encourage consumers to reach consumers.

Fortunately, word of mouth continues to thrive. For example, 30 billion pieces of content are shared on Facebook each month. A significant percentage of sharing relates to product, service or business recommendations. And studies show that people trust recommendations from known peers most, both online and off. As a result, companies reap tremendous benefits from consumer loyalty.

At Share Magnet, we believe companies should reward consumer loyalty. Right now, social media users are monitored for consumer information. We will compensate users for consumer information. The effect will be to infuse open network sharing on closed networks. We believe this will strengthen the closed network experience for everyone involved.