Fred Wilson, a VC and Principal at Union Square Station as well as an investor in Twitter, made some very important and often missed observations about making money on the Internet.

Fundamentals of Making Money Online

His whole talk at #140Conf can be boiled down to the 3 Funadamental Rules of Making Money on the Internet:

1. “Links are the currency of the Internet”
2. Links yield consumer traffic (revenue) in a variety of ways
3. Passed links are the most valuable (conversion) links

Why Social Media Traffic is Better

Assuming those fundamentals, there are some very important and significant observations that should be made about Twitter, social media platforms, and online lead generation.

Fred Wilson articulated those Internet money making observations very well:

1. Passed links are generally delivered via email
2. Social media platforms allow passed links to be scaled
3. Passed links convert better than search or paid links
4. Social media referrer traffic is already significant and growing

Online Lead Generation Opportunity

This would tend to lead to the conclusion that social media traffic, as it scales to a meaningful size will yield better lead generation ROI – assuming you can design a capable, viable social media lead generation business or business unit.

Is anyone trying this?

You can and should watch Fred Wilson’s remarks:

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