New social network Tsu launched on Tuesday. The social network has had a cash injection of $7 million from Sancus Capital Prive and other investors before launch. Other launch partners include LeAnn Rimes, 50 Cent, and DJ Afrojack on the musical side; athletes like Miami Heat's Luol Deng The company was founded in 2013 by tech entrepreneurs Sebastian Sobczak, Drew Ginsburg, Thibault Boullenger, and Jonathan Lewin.
TSU displays ads and promises to pay its users for contributing and sharing original content.The premise is simple. The more interesting content you create which gets shared, the more money you make. Tsu keeps 10 percent of the revenue it earns from its ads. It gives the other 90 percent to its content creators and the people that share posts.
Tsu represents a social earning platform for content. You can invite people to join the network. These users will become your “children”. Any people they invite will become their children and your “grandchildren”.It is a bit like the MLM concept of pyramid selling, however Tsu is all about content. Tsu’s algorithm automatically tracks, measures, and distributes revenue to the appropriate user and their family tree of children and grandchildren.
From $100 revenue, $90 is shared with users. If four users have shared and re-shared content, the revenue is split like this:
The original content creator receives 50 percent of the remaining $90; in this case, $45. The first user to share the content gets 33.3 percent (one third) of the original $90 generated. In this case, $29.70.
The second degree user, who shares the re-shared content, receives 11.1 percent (1/3 of 1/3 = 1/9) of the original $90 generated. In this case $9.99. The third user (think your third degree connection) receives 3.70 percent (1/3 of 1/3 of 1/3 = 1/27) of the original $90 generated. In this case $3.33.
Its a very cool way of sharing revenue – surely something that other companies might be interested in copying.
I don't know if this is a sustainable business strategy or if this company will payout at all.
Follow me if you're on TSU (the new social media site) or create an account if you're not: http://tsu.co/aldrinetolentino