Google, Social Network Dada Plan Rev Share

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MySpace earns money from ads on user profile pages, but the users themselves receive nothing. So Italy-based social network Dada S.p.A. has decided to challenge that model by launching “friend$,” a new revenue-sharing program developed in a partnership with Google AdSense.

Dada.net’s seven million members will have an opportunity to not only earn revenue through the AdSense ads that appear on their profiles, but also through ads that appear on the profiles of friends they’ve invited to join the network. The company hopes the program will help expand the network and encourage users to share more content with each other.

“Friend$ is the new frontier in the social networking community world,” said Dada chairman Paolo Barberis in a statement. “We want to show that the potential blogs have is not only for gathering user generated content but is also a business model for generating an income for those who join. Thanks to friend$, users can now finally join the elite in the advertising value chain.”

Friend$ is invite-only, but users can request invitations. Google is managing the economics of the program while Dada is managing the ad placement and the relationships between friend$ participants.

Dada’s social network operates in 15 countries. The new rev share program launched in the US and Italy on March 1st, and will soon be available in Spain, Portugal and Brazil. Dada is still determining when and how it’ll implement the program in other countries throughout Europe, Asia and Australia.

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