Social Networking Sites - Why???

Last night at a dinner party, someone asked, “Microsoft valued Facebook at approx. $10 billion. What’s your take on why the community sites like Orkut/Facebook/BigAdda are selling like hot cakes?” This sure got the Samurai thinking. So here goes the Samurai line of thought on the issue.

Fad: That was the instantaneous response that came up! These sites have mushroomed due to viral, word of mouth marketing and gradually a cool factor has come to be associated with them. “Hey you not on Orkut!! What’s wrong with you?” “Have you tried to super poke anyone on Facebook?” “How many fans/testimonials do you have on Orkut?” Statements like these add to the popularity of networking sites. A caveat here though is that not all of these sites will be successful. Every now and then you have a new site coming up with newer features. This cool / fad factor may mean a fickle membership base and even extinction for these sites. But you don’t need to be a rocket scientist to see that there’s a lot more to it than mere fad/cool factor. These sites are here to say. So why?

Social Disconnect: Our lives have become so disconnected now. Not anyone’s fault, but you cannot connect to someone for everything. There are things you can discuss with your parents and some that you can’t. Same holds true for your Girlfriend or Wife or Kids or siblings or friends for that matter. There needs to be an outlet where you can connect to people with the same thought process and point of view. Hence, the “I hate Himesh” or “I love Shahrukh” communities (Pardon me for the slightly crass examples) give you an opportunity to share thoughts with likeminded people. This connect is giving people a high which not all relationships are giving.

Cynicism: “I do it for Networking”. While this one seems to be a no-brainer, it may not necessarily be the complete truth in all cases. “You want to stay in touch with all your friends / business contacts and instead of calling them up every time, a scrap is enough to show that you are thinking about them“. But tell me honestly, would not a small email have served the same purpose? Why not go to a professional networking site like a LinkedIn? Or is it, that there are a few people whom you just want to keep at arm’s length and you say. “Boss scrap is enough. I don’t want to be too friendly”. Seems hard to believe, but have met a lot a people who confided the above statement to the Samurai.

Selling: These sites work on a simple business model with revenues from banner or text ads. They are a fantastic channel to target youth which is the primary membership base. Even job postings on these sites are getting better responses than say a monster.com. But, if the membership base falls, the revenues and subsequently the sites will fall flat on their face. Which is why new sites will come and go, but very few will stay due to business reasons. Hence these sites are in today, because it makes business sense to run them.

Obviously, there are a number of advantages like keeping in touch with friends. Nice way to make new friends, which is a big reason for popularity with the college crowd. Where else would you find an easier way where you would be able to find an easier way to show case yourself in the best manner possible with friends writing good things about you? For some, being on these sites is a great stress buster! Being a regular on Orkut and Facebook, the Samurai is not against any of these sites or any of the reasons for their popularity. So all in all, the social networking sites are here to stay and we sure will hear about them for a long time to come…
But the million $ question is “How many of them will survive?”

cheers
Samurai