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EDMONTON, AB Sep 16, 2015/ Troy Media/ – Vertical networks are irresistible for their direct connections.
Investopedia defines vertical networks this way: A group of companies that serve each other’s specialized needs and that do not serve a broader market. For example, a company that manufactures furniture would belong to a vertical market while a company that sells furniture would be described as a horizontal market for its various target audiences.
Yes, there’s money to be made in these social networks. Think about LinkedIn where brands pay for these opportunities:
- Profile-matching to help identify potential job candidates.
According to Jon Reed, writing on Diginomica, “Company pages are OK, but it’s the topical groups that spur the most engagement . . . thousands of members, but more importantly, active, on-topic discussions . . .”
There are more than two million groups on LinkedIn notes David Sumner Smith of Next Dimension Media. The vast majority are very small, with less than 100 members. Just over 200 groups (i.e. 0.01 per cent) have more than 100,000 members. Forty groups have more than 250,000 members, while each of the top 10 has more than 500,000 members.
Sumner Smith and his partner, Olivier Taupin, remain committed to LinkedIn. After all, it was Olivier who founded LinkedIn:HR, the largest professional group on LinkedIn and the largest HR community worldwide with 975,000 members.
Yet, both gentlemen are captivated by the prospects that come with emerging Vertical Networks.
Sumner Smith likes to quote Ben Boyer who says, “LinkedIn groups represent a slight verticalisation of the horizontal network itself by allowing people to populate themselves into these defined buckets.” The managing director of Tenaya Capital couches his comments, though: “They are very different from Vertical Networks.”
Branded Vertical Networks own their IT platforms. They also serve a specific profession by offering tools, resources and information that is practically useful to members of that profession. For example, Spiceworks delivered a network management tool that is now used to manage 170 million hardware devices and more than 10 billion traditional and cloud-based application installations.
Here’s a few more examples. Avvo.com is a U.S.-based network that connects lawyers to other lawyers, and also enables their customers – individuals or businesses – to obtain speedy online responses to legal questions.
Chef’s Roll is a global culinary community of professional chefs, food authors, and industry professionals. Their website recently posted an opportunity for brand ambassadors to represent their flavour smoke products.
Sumner Smith describes two more ways for Vertical Networks to generate revenue:
- Revenue sharing of products sold through the network between vendor and network owner;
- Tools provided by networks to help professionals do their job more easily. “Usually those tools (developed by the network owners) are provided for free,” says Sumner Smith. “But paid extensions can be made available, too.”
Here’s four more Vertical Networks
Stratasys – Manufacturer of 3D printers and 3D production systems for office-based rapid prototyping and direct digital manufacturing solutions. It surprised the investment industry, since there were very well known suitors for the acquisition: Adobe and Autodesk.
GrabCAD (now Part of Stratasys) – A mechanical engineering community platform that connects mechanical engineers with manufacturers and product development companies. GrabCAD is leading the open engineering movement, helping engineers get products to market faster by connecting people, content and technology.
Edmodo operates a social network for education in the U.S. It enables teachers, students, and parents to connect, share content, and access homework, grades, and school notices. The company’s network enables teacher-to-teacher resource sharing, global professional development, and networking opportunities.
Doximity – Doctors/Physicians Founded: 2010 Launched: March 2011 Headquarters: San Francisco, California Number of Employees: 105 (June 2015) Membership (Registered Users): Over 400,000 verified U.S. physicians (December 2014), which represents more than 50 per cent of U.S. Physicians.
Communications strategist Sharon MacLean owned and published a print business magazine for 21 years. She now works to assist clients in digital marketing.