Myspace has announced that they are on course to achieve $1B in revenue this year. This comes at a time where chief competitor, Facebook has surpassed Myspace in overall web traffic, but is looking at numbers far lower than $1B. In fact, Facebook’s CEO, Mark Zuckerberg has admitted the fact that “cashing in” on social networks is still somewhat of a mystery.

Despite this, Zuckerberg is confident that they will be able to figure it out in the near future. Zuckerberg states, “I don’t think social networks can be monetized in the same way that search did. But I’m pretty sure that we will find an analogous business model. In three years from now we have to figure out what the optimum model is. But that is not our primary focus today.”

I don’t think social networks can be monetized in the same way that search did. But I’m pretty sure that we will find an analogous business model. In three years from now we have to figure out what the optimum model is. But that is not our primary focus today.

So who’s the winner of this social network race? Is it Myspace for being the most profitable social network; or do you give it to Facebook for securing the #1 spot in terms of worldwide web traffic?

While both companies seem to have differing strategies and goals, it is Facebook that will ultimately prosper by capturing the attention and loyalty of users around the globe. In terms of social networks, (connecting with friends, family, and peers) Facebook is unrivaled. Facebook acknowledges this and continues to focus on their core competency, connecting individuals…not necessarily profiting off of it just yet.

Social networks, especially monetizing them, is really unchartered territory. One of, if not the most important factor in a successful social network is (you guessed it!) the size of the network. If Facebook is able to become the largest and most powerful social network (and it looks like it’s heading there), this so-called “network effect” will automatically put them in a position to succeed. Let us not forget, it took Larry and Sergey a few years until they saw Google turning a profit.