IDEA : Social networking site a viable revenue source?

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In advance I would like to apoligise for my rambling nature and terrible
spelling and grammer.

So I was thinking of creating a social networking site (Like myspace or
bebo) that was targeted towords a specific demograph (Namely 18-30 year
olds in the local area). I was hoping to use it as a personal project
that would hopefully generate revenue through advertising of products
(From local retailers) that would be targeted at this group specificly,
such items as clothes, pub promotions etc.

Now, what this has got me thinking is the following:
Back over the last few years, how you would go about creating an online
community was with a bullitin board and maybe a IRC java applet. Sites
like this, while they always seemed to work well with specific
audiences, only really appeared to go down really well with particularly
computer literate groups, and I always found it difficult to find one
that appealed to a much larger not so computer literate audience.

With the rise of sites like Bebo, MySpace and Friends Re-united though
it appears that they have successfully drawn in the diffrent kind of
audience. I hear people in my town talking about putting the pictures
they have taken that night up on bebo, and these are not the kind of
people that I would typicly associate with online communitys. They
generally tend to be what I would class as socialites I suppose.

I am supprised that this is not something that I have seen before, but
do you think that there might be an opening for it? Customisable
profiles, with the ability to send messages amongst one another, mostly
focused in one town or county area.

The main advantage you have with having a specific audience living in a
certain area, is that you are not dealing with the "Throwing shit at the
wall" approach that you would be with banner advertising. You are
dealing with people that will more than likley be living within 30k of
the business' with whom you partner. By tying the site into other
attractions like local gig listings, cinema time-tables pup promotions
and that sort of thing, you are ensuring that the majority of the
demograph that you attract would be intrested in the products that your
clients are seeking to sell.

In addition to this, virtual communities tend to be viral by nature.
Your target audience (Once you get a few there) tend to draw more of the
same through word of mouth etc.

Has anyone experemented with a system like this? Has anyone any
sugestions on it?

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