Internet marketing is not what it used to be. Not so long ago, it was thought by many established technical entrepreneurs that you could build up the fan base for your Internet service, and turn the popularity into cash.

This is no longer the case, and it’s not as easy to move from Likes to generating a profit.

Insubstantial Returns

Startups like Pinterest, Tumblr and Foursquare are now beginning to notice the bind that they’ve managed to squeeze into. Unless they were set up with some sort of monthly payment plan, quick profit with minimal effort takes the form of an advertising move.

Some of these startups have resolved to free themselves from the bind, however. Tumblr is expected to bring mobile advertising into its marketing strategy. This comes but a few months after users were afforded the option of buying more desirable post placement.

Though, Pinterest seems to be taking a slightly different approach. Like Facebook, Pinterest will now afford marketers viewer demographics, and a running tab of their most popular posts, and this takes the stance that viewer activity is valuable to Pinterest users. Assuming you could then turn the activity into profit, you could see a substantial return.

As web-marketing tools become more popular, they drive the price of established services down, which puts a serious hold on established services’ ability to turn a profit.

Competition

Another reason that Tumblr and Pinterest may be having trouble connecting the dots is because someone else is pointing them out on the map. Instead of focusing on direct marketing strategies, Foursquare is now providing location data to affiliated companies. Internet business like Path, Vine, Instagram and Evernote, as well a multitude of other location-based features are run by Foursquare.

Many entrepreneurs find this to be extremely clever. Foursquare has chosen to leave the direct marketing ring, and turned itself into a business to business web-tool. Through Foursquare, companies can request location data and retrieve it, making the web-tool an extremely valuable small business asset.

Still, Facebook is already using location data, though in a different template. Either way, it is predicted that it may replace Instagram in the near future. It is also important to note that the data revolution could drive down the profits of individual companies, like Tumblr and Pinterest, as more of the same means more competition. Small business owners should be able to rise above this. By the time the first consumer is aware that a marketing trend has begun to take shape, the small business owners who intend to stay in business will have long moved onto something else.

About Jim Jacques

Jim Jacques is the President of United Virtual Office, which provides business owners with virtual office services to help them save money and grow their business. Virtual Offices include a prestigious business address in myriad U.S. cities, Virtual Phone Services, courier services and more. Google +

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