How exactly does 4 Square make its $

[Dr Kevorkian94]

So I'm doing a project on social networking and I tried googling this with no specific answer to be found. I know some of it has its roots in a deal made with american express, also i know it has to do with local business as well but i can't get an exact answer. The help will be greatly appreciated

 

[xboxer75010]

I was actually looking this up myself recentely and it seams like a pretty good idea. Link

Foursquare Labs Inc. plans to get most of its future sales from software that helps merchants track the behavior of potential customers, Chief Executive Officer Dennis Crowley said.

Foursquare, a Web service that lets users share their whereabouts, already offers free tools to 500,000 businesses. The New York-based company will eventually begin charging for additional services that help monitor shoppers, Crowley said yesterday in a televised interview with “Bloomberg West.”

“It’s going to be the tools that we offer these local merchants,” Crowley said, when asked where the company would generate the majority of its revenue in the future. While there are no immediate plans to charge for new services, “it’s something that’s on our road map,” he said.

The strategy marks a departure from the approach used by Facebook Inc. and other social-networking companies, which rely mostly on advertising to make money. Instead, Foursquare wants businesses to pay for help analyzing the data generated by its 10 million users. Foursquare already collects some revenue from partners such as Groupon Inc., which show users discounted offers on meals and activities that are nearby.

Foursquare also gets some advertising money. It has ad deals with companies such as PepsiCo Inc., Safeway Inc. (SWY) and Zagat Survey LLC. Meanwhile, it faces increasing competition from location-based features offered by Facebook, Google Inc. (GOOG) and other large rivals.

 

[Dr Kevorkian94]

That was perfect thank you so much!