Sunday, October 14, 2012

The Rising Call for Facebook and other Social Media Sites to Become Advertising Platforms

The Rising Call for Facebook and other
Social Media Sites to Become Advertising
Platforms
The Internet is a continuously growing avenue to a lot of
online businessmen. However, along with this growth and
progress of the Internet as a platform to do business is the need
for a powerful and extremely strong advertising platform in
order to capture more potential clients for the company.
Today, Facebook and other social media sites are being
molded into not being a mere social networking site or a social
media site. These sites are aggressively being formed into becoming
one of the most powerful advertising platforms there is in the
Internet. This is what majority of online business are trying to
envision in the next few years to come. Just recently, Facebook
has undergone several re-structuring phases on its totality
beginning with its applications and features.
The inclusion of Marketplace application in Facebook is a
clear indication that the makers of it are hugely considering the
high potential of Facebook as one of the advertising platforms
that will drive better marketing strategies in the near future.
Apart from that, it is also clearly visible these days that social
media sites like Friendster and MySpace are not mere social
media platforms that try to put connection between and among
people. More notably, with the inclusion of advertisements as
part of their pages, clearly manifests that they are also re-shaping
the structure of these social media/networking sites into becoming
business networking sites.
74
In the next few months, the call for these social media
sites to become the pillars in advertising platforms will become
visible and a lot louder.

Marketing a Facebook Application the Effective Way

Marketing a Facebook Application the Effective
Way
The Facebook application is something that constantly
changes. From time to time, there are new applications that are
Facebook releases; what may be considered latest application
today shall become old and obsolete the following day. This
makes it rather difficult to market and sell the application.
However, because these applications have varied functionalities
and uses, Facebook users think that the feature does not easily
become old and worn out. This has been the redeeming factor of
all the applications that Facebook has.
Since the Facebook applications are seemingly there to
last for long, you can essentially make use of these to ensure that
you profit from them. It is just a matter of how well you market
them. Below are some of the more effective ways to market a
Facebook application:
a. Have your applications posted in your own Facebook
account. Make sure, though, that the placement of the
application is positioned strategically on your page. Usually,
there is a specific location where Facebook places all the applications,
but at times you personally look for a better position where
you can place your application.
b. Make your application very interesting and have it
linked to all your friends and relatives’ Facebook pages. Since
your page has already established networks make sure that your
application is also linked to all these people.
c. If you have other accounts on other social media
and social networking sites, you may want to embed the link of
your Facebook application on any of these accounts. This makes
your potential to market a little wider in scope.

20 Ways To make Money on facebook

 20 Ways To make Money on facebook
Generating income online is probably easier than generating it offline, for an
entrepreneur. The reason for this is that this that the startup costs have been
significantly reduced and the World Wide Web (WWW) is much more egalitarian than
real life. If you were an entrepreneur trying to get an advertising contract with a major
company in real life, your odds would be slim to none.
On the Internet, however, advertisers are relying on the average Joe to plug their
products and services.The same is true if you have a product that you've developed and
are trying to market in local retail stores,the time and money you have to put in to get it into
a single store can eat up any profits you might obtain from the sale. It's a lot of work and
you haven't even begun to generate income.
The Internet makes that process easier too by allowing you several avenues to sell your
wares online simply by placing photos and descriptions of them on the Internet in the right
areas.
Here are 20 simple ways you can Make money on facebook
1. Market Your Own Products
If you decide to market a product or service, be sure it is something you stand by and that it
resonates with you personally. First, and foremost, Facebook is a social networking
platform. If you are selling products that don't appear to resonate with your profile or your
mission in life, people will quickly spot you as a marketer and you will not get many people
wanting to be your friends. The key is to always market products that you believe in and that
a difference in other people's lives. That way, when they see who
is selling an item, it won't reflect badly on you and your Facebook profile.
On the Internet you can market your own products at a fraction of the cost it would take
to promote them physically from one retail store or outlet to another. Examples of
products that do very well on the Internet are virtual products like reports, ebooks, music
downloads, photographic content, and anything that you can sell in electronic format
that might appeal to someone viewing it online. These products are usually referred to
as “info-products.” The nice thing about info-products is that they lend
themselves very well to low overhead costs. You can produce one product and it takes
no effort to create multiple copies and have them delivered automatically through
autoresponders. Your sales cycle is very short and your costs are minimal.
You can also market physical products that you deliver in your geographical area or through
postal mail. Of course, this takes a lot more effort and you would have to include shipping
costs to the price of your product to be able to make a profit. You can even choose to offer
your products in several different formats. For instance, maybe some people want the
electronic download and others want a physical book.You can offer them a variety of
different formats and pricing to find one that suits them. Multilevel
marketing can also be done on the Internet and Facebook. If you've found a product that
you want to market, then you don't necessarily have to own the rights to produce it, just the
rights to distribute it. And,you might find it easier to recruit people in your down line using
Facebook.
2.Use Affiliate Marketing
You can also do affiliate marketing online. This is where someone else pays you to sell
their products for them. The commission you receive on the sale will depend on the
affiliate offer you are promoting.
In some cases, you can get up to 50% of the sale, if you pick the right offers. Here
again, you should pick things that resonate with your profile in Facebook.
Affiliate marketing links could end up cluttering your profile page, if you included them
as website links, and probably people wouldn't appreciate them. So, affiliate marketing
on Facebook can be a little tricky. You should be a little stingy with the number of
affiliate links you post on your profile or within your status line. This is an area you can
update daily with new offers, but if you do it too much, you will turn off people who come
to view your profile.
You should also want to start to build a demographic section of people on your email list
who are already in your sales funnel from your contacts on Facebook. Once they opt-in to
your email list, you can start to contact them about your affiliate offers off the Facebook
platform. This means that you might have to also set up some ads within Facebook to
generate the cross-section of people that you want to market to. Or, you might start them
into your sales funnel by offering a free resource on your profile in exchange for their
email address.This way, you've not placed affiliate offers on your profile directly, but you
have gathered the necessary information to start generating a mailing list for affiliate offers.
The application to use for affiliate marketing on Facebook is called RadicalBuy.
3.Advertising Revenues
There are a number of people generating revenue through sponsored ads, Facebook Social
Ads, and pay per click ads on Facebook. If you end up with a large cross-section of people
are friends that might be easy to market for a particular advertiser, then they might be
willing to pay you for some sponsored ads, however, this can't be done on Facebook
without violating the terms of the service agreement. So, you can still
attempt to get advertising revenues from sponsored ads, but they aren't allowed to be put
directly on your Facebook profile. They will have to be placed elsewhere, on your personal
website, or an outside blog.
The trick is to have them pay for the ad for a period of time, like a month. Then, you have a
residual monthly income coming in from a single text link, banner, or button on your other
content. You can direct Facebook viewers to your other areas by way of links on your
profile, even if the sponsored link is not directly on your Facebook profile.This can
generate significant income from your Facebook profile in a short period of time by
buildingrelationships within Facebook first, before you market them elsewhere.
4.Sell Services
Facebook can be an excellent resource for professionals who sell services. That's because
the Internet has made it very easy for people who need your services to connect with you,
regardless of whether you are in their geographical location or not. Add to that the
technological advancements that make online consulting and teaching very simple, and you
can see that there are quite a few advantages to selling services online.
The down side of selling services, instead of products, is that your time is limited.
If you don't make good use of the technology available to help distribute yourself over
multiple platforms in digital format, you could easily find your profits being limited by the
amount of time you have. Some of the ways this dilemma can be resolved is to
outsource the smaller tasks, so that you can concentrate on the ones that are highly
profitable and need your particular attention.
You can sell many different types of services online, but they should resonate with the
persona that you've established on Facebook.
5.Create a Facebook Pages
Facebook pages are similar to profiles except that they are used for businesses,
organizations, and a number of different types of interests. You can expect to see a
Facebook page about a restaurant just as easily as you might spot a Facebook page on
pets. There are several categories to choose from: a local business, a brand
or product, or an artist, band, or public figure. The interesting thing about Facebook pages
is that you don't necessarily have to be the celebrity to put up a page about your celebrity.
The Facebook pages works very similar to profile pages except that they are public. They
have some of the same features as your profile page like a Wall and the ability to upload
files. They also have discussion groups and and a way for fans to join your Facebook page.
The service is free and promoted virally throughout Facebook and even comes up in the
search results. The actions that people take on your Facebook page are also integrated in
the news feed and thus your product or service can spread virally through word of mouth. If
you use Facebook pages in conjunction with Social Ads, you can increase the chances of
your product getting viral momentum. To create a Fan Page, visit this
link http://www.facebook.com/pages/create.php
6. create a Group
There are two ways to promote your business using groups. You can join an existing group
and join in the discussions and at the right moment promote your product. If you do this too
much, you will be labeled a spammer, so it's not the best way to promote your business
through a group.
Another way, which is very effective, is to create your own group. This provides several
benefits to joining
an existing group. You can control what segment of your demographics to target with a
group topic and you can put up your own advertising in the group without offending anyone.
You don't want to create a group about a specific product or service you are offering. No
one is going to join an obvious ploy to market your wares. Instead, you will want to choose a
topic related to your products or services and then use the group to help you promote your
business. For instant I Created a group in facebook called “Best website Design Tips” and
the aim of this group is to promote my service which is www.TheExpertHost.com (an
website hosting,Domain name registration and website design service).Hope you got the
gist?
Visit this link http://www.facebook.com/groups/create.php to
7.The Wall
The wall is an area of each person's profile where messages can be posted by other people
who are visiting the profile. You can put any message you want on the wall and it will be
public. You can use this to research the market trends of people's interests and you can
also post some message about things that might interest specific people in your circle of
friends. Be aware that if you spam the wall consistently with sales ads, you
will probably be blocked, and if the staff of Facebook is alerted you could end up being
banned from Facebook.
An interesting way to use the power of the wall, is to look for people in your circle who have
a high number of page views on their profile. These would be people who have a lot of
friends or send a lot of activity to the news feeds. That's the only way to tell what type of
page views they might be getting. Then, target these people for your comments on their wall
in a way that pulls the people viewing back to your profile.
8.Use Facebook Marketplace Application
Facebook Marketplace, once installed, will offer you a place to list things for sale, housing,
jobs, and classified ads. There is even a spot for free stuff too. The opportunities will be
divided up by your networks. So, don't be surprised if you don't see everything on your
Facebook from the entire site. It is set up to be a community marketplace, so it makes
perfect sense to see only those listings from people in your network. That is why you want
to setup your network to be the place where you mostly do business, not where you live. It
is the basic area where people within Facebook go to do commerce within Facebook.
However, it doesn't complete transactions between buyers and sellers. That is done offline
between the two
parties.
9.Use Facebook Garage Sale Application
If you have a whole lot of stuff lying around that you want to get rid of, and don't want to
incur fees for listing them on eBay or some other third-party site, you can use the
Garage Sale application. There is a commission charged for any sale that you make,
but it is only 5%. It will do transaction processing too and your friends can use credit
cards to buy the items from you online. This application is still a bit new, however, some
people swear by it and others have some trouble installing it.
10.VisaBusiness $100 free Facebook ads coupon
You can also use the VisaBusiness $100 free Facebook ads coupon to
advertise your sales page. To do that go to
http://apps.facebook.com/visabusiness/sign_up, sign up,
complete the simple steps and you will get a $100 free advertising credit on
Facebook!
11.Use Facebook Events Application
If you have some local events that you are using for marketing purposes, or
you want to connect with people specifically in your geographic zone faceto-
face, then you can check out the events page. You may find groups of
people in your area who make a perfect sales demographic for your
products or services.
12.Position Yourself as a facebook marketing Expert
This brave new world of social networking is completely beyond
the grasp of many marketers today.If you are really in the know
about facebook,offer your services to advertising and public relations
agencies,as well as big and small businesses alike. Put your knowledge
to work .Why not become facebook advertising specialise-just as Google
transformed search adverting,facebook have a profound effect on social media
advertising presently.Help Companies with their Facebook Strategies
13.Use Facebook RadicalBuy Application
RadicalBuy is another marketplace application that is more robust than
Facebook Marketplace. It will allow you to recommend products to people on
your contact list. You can get feedback and offer feedback on market transactions.
You can cross-sell between RadicalBuy and Facebook Marketplace. It makes it easy to collect
payment, unlike the Facebook Marketplace. It offers users the ability to collect payment using
Paypal, Google Checkout, credit cards, and more. You can even choose affiliate offers through
RadicalBuy, if you want to include that with or without your own offerings.
14,Use Facebook Appsaholic Application
This application is for people who have created their own applications and want
to monetize them. However, if you choose to do this, you will want a way to
track the performance of your application and to place ads on it so that you can
get a return on your investment. This application claims to be the #1 Facebook
ad network for application developers.
15.Use Facebook Business Cards Application
The idea behind the Business Cards application is similar to a conventional
business card. Except instead of handing it to someone for future reference, you
can attach your business card to Facebook messages. You can browse other
business cards and make connections that way too. It is a sort of visual way of
establishing your identity in a way that keeps you from having to keep writing
the same thing over and over. This application was a bit buggy in its inception,
but appears to have been fixed to allow a person to edit the business card information once it
has been entered.
17.Use Facebook Introduce Me Application
Introduce Me allows people you know on Facebook to introduce you to people
they know. It facilitates networking. The application is placed in the profile
making it easier for people who stop by to introduce you to other people they
know.
18.Use Facebook Testimonials Application
Since you are in a social networking environment, word-of-mouth from trusted
sources can make the difference between a sale or a near miss. And, with this
application, people can simply go to your site and add their testimonial very
easily. The fact that their user name will be associated with the testimonial at
times means the testimonials hold more weight on Facebook. Although this
application is also still a bit buggy, it bears looking into. Right now, if people
post a testimonial on your site, it may be difficult to delete it.
19.Use Facebook Ether Application
This application is good for consultants, tutors, and pay-by-the hour types of
people who can do business over the phone. The application will provide you
with a special phone number to use for your business and allow people to call you
directly on that number once they pay a set fee that you set. The phone call will be directed to a
phone number of your choice. Now you have your own way to set up an anonymous pay-to-talk
phone number.
20 ProBook Facebook Application
This is an application that allows you to add information about yourself in a
professional directory. Friend and people you've contacted can offer feedback
and rate you, which will give potential employers some measure of your worth.
This is not all there are many other ways

How will you use facebook to make monye

The internet has given us all incredible power. How will you use
it? What’s your passionate vision? Can you leverage your online
or offline social networks to launch you?
If you are a parent, teach young people about good uses of the
internet and social technology (such as building a billion dollar
102 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
67 i just received an email “You have been invited to join a MySpace Group!” so I
open it and read “Hi K, You have been invited to join the sexy live webcams room
group on MySpace.”. Click on the link and, gosh darn it, I get a “Server too busy”
error. But that’s okay, because I get one just about every other day, like for
“kittys69 webcam group” which pointed to another porn webcam site. this type of
spam is almost never seen and vigorously fought on Facebook, but it’s my only
communication from myspace.
company with it) and understand when young people use it
differently.
If you are a technology professional, I hope you can benefit from
this experience, mostly to recover your youthful ambition and
inspiration. I address you all as young students now, whatever
age and in whatever situation you are. We can all share the
youthful ambitious drive, which propelled Facebook to amazing
results.
The world is waiting for your inventions. Busy looking at hot guys
and chicks wherever they happen to be, but otherwise waiting for
you, if you can break through that noise.
I said you can do Anything, not Everything. And I did say YOU.
Yes, you. Everyone, each of you.
Generation Debt: Why now is a terrible time to be young, by a 24
year old, has important data, a correct policy perspective, but a
terrible subtitle and even worse tone. I feel like crying in
frustration and sympathy as I read about hopeless young men and
women, trapped by debt, exhaustion, and inertia in low paying
jobs, unable to see a better future, clinging to regrets and blame.
It is indeed a terrible time to be hopelessly in debt, and certainly
kids growing up in the 50s and 60s had it easier, and certainly old
powerful folks (much older than me) have stacked the deck to
favor themselves and the powerful. But look, dammit, Facebook
shows us we don’t have to give in to that. Don’t give in.
Karel Baloun 103
I’ve found something to put here. Your turn.
When I graduated, I was such a financial idiot that I put myself a
few hundred bucks short of $100K into debt, and I sat
unemployed, without my part of the rent in my checking account,
and holding over half a dozen maxed out credit cards. I turned it
around68, and you can do so even faster and better. Read Your
Money or Your Life. Then be grateful. You have online tools and
opportunities I didn’t, and you are smarter than me. The two
things I did right were that I stopped spending money and always,
continuously, obsessively, passionately kept developing and
evolving whatever I thought could be useful skills. Indulge me as I
rephrase those two items.
I. Stop whatever you are obviously screwing up. Stop digging the
hole in which you are standing. First stop spending money, the
big items first. Then eliminate your blocks; remove your cement
shoes. A genuine positive attitude, based on absolute and
unconditional gratitude, is worth a million times its weight in
gold. Just weigh it and see. Seriously, I am grateful for whatever
happens, because I know it was meant for the best for me, for my
future. I even felt that way about my house burning down. If
nobody buys or reads this book, than that is because it sucked,
and thank god nobody saw it. Finally, any addictions must go.
104 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
68 Obviously this is a long story. Catch me sometime here on my back deck at
2am, in the light of the full moon overlooking these beautiful californian oak
covered hills, when I’m tired of coding but not ready to sleep. The best book
available is Your Money or Your Life, which carefully teaches that not only do you
not _need_ that (whatever it is) but it is also costing your X hours of your life. The
tools it in were, literally, priceless and life changing. The only outdated bit is that
it tells you to buy bonds; don’t do that. See, you have it harder, and need to be
creative. Of every book I’ve introduced you to here, BUY THIS ONE.
Obvious ones like drugs, alcoholism, gambling are relatively easy.
Then continue on to snap thrill seeking, unsatisfying sex,
pointless web surfing, collecting this or that, and whatever else
takes your time regularly without putting you ahead, giving you
any long term value.
II. Passionately do good things for yourself. Figure out something
you are good at, and then uncover what you need to do, today, to
be better. Repeat. Persist. Whatever you try your best at, if it is
good for people, it will be one of your valuable stepping stones.
Luck always favors the prepared. So prepare yourself to be lucky.
What to do? What skills have value? What jobs are likely to be
around in 10-20 years, so that your first (or next) steps towards a
(new) career pay the highest dividends? What are people likely to
need? Especially people who are likely to be rich, powerful,
respected or skilled at that time, or the people who will be closest
to you to serve! (these may be a very different group of people
than today.)
Friends and community are critical to your success. Do you have
the right people around you? Facebook can help you here, as long
as you are an active creator with whatever tools you have. Surfing
endless profiles and photos doesn’t move your life.
Your attitude determines your opportunities. The economy for
you is what you personally think it is. Whether you believe you
will succeed or fail, you’ll be right. As Abraham Lincoln said,
“Most folks are about as happy as they set their mind to be.”
Karel Baloun 105
I’ve found something to put here. Your turn.
Facebook, Dell, Microsoft were founded by college dropouts. But
Google wasn’t and I personally don’t recommend it. Zuck and
Dustin were just ready to move ahead, that’s why it worked for
them. Most people are not ready to give their entire heart, soul
and 18-20 hrs/day to an idea, or don’t have that idea available to
them. Give that same passion to something, while finishing your
degree. Those somethings will be your ticket, as Japanese was for
me. Drop IN. Don’t just go along with what advisors say, be
satisfied completing your English, Women’s Studies, Psychology or
Business degree, and realize that you don’t know what to do with
it. Study agriculture because you want to be a farmer, or biology
because you are passionate about nano-bio-tech, or math
because you want to compute better climate models to save us
from global warming. Drop IN, with some passion in your studies.
Don’t just major in Business; do the business. Don’t just major in
Creative Writing; publish some creative writing. Skills based
majors are wise, in that they keep your options open, and are
usually harder. With learning and personal growth, if its quite
easy is likely not too valuable. Drop IN.

Facebook’s Vision

Facebook’s Vision
Facebook’s vision is both more complex and more ambitious,
since Zuck aims to build something that didn’t exist in the real
world before.
Facebook intends to improve the flow and quality of
information between people, to actually improve
communication and relationships. Facebook wants to broadly
improve such a fundamental human activity. And why not?
They’ve succeeded in doing that for the broad swath of collegegoing
Americans.
On one hand, improving communication isn’t an unprecedented
aim. The telephone replaced the telegraph; IM and VOIP are
replacing mail/email and telephone; FedEx replaced the Pony
Express. Communication methods are always improving,
becoming faster, more reliable, and more expressive (able to
contain more information).
But these improvements were all mostly about quantity based
improvements, such as delivery speed, reliability/security, price,
and content throughput. VOIP, pretty much for free, can send
billions of bytes/second of information across the US, while the
horses could probably carry a pack of letters over a month, and
back then people wouldn’t know if the letters even got to where
they were going. But based on my personal sample of
94 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
conversations, the quality of the communication probably hasn’t
improved!
I suggested to Zuck that people65 would want different profiles to
show different sets of friends, or at least to different circles, such
as say their college buddies vs. their professional network. I got
the idea that Zuck hopes that the facebook will make such
confused personal identities a thing of the past. After all, a
majority of facebook college alums continue to use facebook
every day, as they did before graduating, so perhaps they can
persist with a single coherent personal identify for years. Perhaps
their old friends can keep them honest and true to their college
selves, to their young dreams, and their new friends will be
integrated into their existing groups. And perhaps they will find
new friends who are more consistent with their college
personality, instead of being remolded into a new circle of work
friends, whose character is very different than what they were in
college.
Zuck and Dustin and most Facebook engineers have succeeded at
this. They’ve kept their college network and their college
personality into their initial professional career. And I’m sure this
would be everyone’s ideal situation! College was a lot of fun and
Karel Baloun 95
I’ve found something to put here. Your turn.
65 especially older, more complex, more confused, people. i wouldn’t want an exwife
(if i had one), my kids, and my current professional friends seeing the same
profile. As Facebook opens to “work networks” and open-to-anyone geography
networks, the tension between current and former coworkers emerges, distinct
from students-alumni, since alumni are mostly all happy and colleges don’t have
“company secrets”.
was very effective - I bet we all feel like we learned so much and
grew so much personally in those few years. Work life doesn’t
always feel like that, especially as a new cog in a larger
corporation. We can go for a year or more where we don’t grow
much personally, and can come to measure our success by our
bank account balance or how much stuff we have. Facebook
doesn’t have a MyStuff section, even though having one would be
an excellent business move. They may have it later, because the
stuff we have does communicate information about us, but
college students are not as much into stuff as older working folks,
for whom stuff soothes.
When do Internet users change, or when should companies adapt?
So I told Zuck that older people have different personas to show
different groups of friends. And while he didn’t tell me that was
fake, not genuine or otherwise uncool, he said that might not
have happened to me if I had had Facebook. I could’ve stayed
genuine to myself, and communicated that coherently to all of my
friends.
Instead of just losing touch with them. Yes, unlike the Facebook
generation, I’m having a heck of a time tracking down my
important college friends. My Japan trip was partly about that,
since most of the old contact information I had was destroyed in a
house fire 3 years ago. How quaint ‘eh? Yes, I wrote it on paper,
with a pen. Fortunately, the Facebook is backed up against the
loss of your little book of contact information to fire. Or of your
cell phone to theft. Or of your laptop’s hard drive to failure. You
96 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
don’t have to worry about these, as long as your important friends
continue to value the network.
So Zuck seems to have solved the problem of immediately losing
touch with your school mates, by effectively enabling people to
stay in loose touch over remote distances. So when he sees some
additional communication problem, it would seem natural to him
that the Facebook can and will solve it. The solution is to build
Facebook in a way that avoids the problem, and then the problem
will no longer exist once everyone uses the Facebook. Completely
reasonable, right?
To look at the limits of how much people will adapt to use a
product, contrasted against how much a product should evolve to
serve its people, let’s revisit the “a person has multiple personas
or profiles to show different people” issue. If real communication
means that a person is genuine and real to everyone looking at
his profile, then it means that he should have one single,
consistent profile. Otherwise he is either lying or at least not
revealing the full truth about himself to someone, which is
imperfect communication. So if Facebook doesn’t allow that,
people will remain consistent to all of their online connections.
Major social communication problem solved, and thank you again
Facebook.
Maybe. Will people naturally change their social behavior, in line
with new tools? Sometimes yes, as now I and most technophiles
loathe waiting days for a snail mail response, and have fully
replaced personal letters with email, and may even be going
Karel Baloun 97
I’ve found something to put here. Your turn.
digital with Holiday and Event cards, which would radically change
their content.
Only if the social function is deemed better, will it be adopted. IM
seems preferable to email, on the same criteria of speed and
availability. However it has partially crashed on the rocks of
making users too available, and now some IM clients allow users
to show a different status message to customizable groups of
users, and some IM users have resorted to always leaving their
status as “busy” or “offline”, contacting others only by initiating
the message. While talking a voice phone call is much faster than
typing, IM leaves a searchable conversation record, and lets me
talk to more than one person about different things at the same
time.
So is a single “persona” better communication?
Well, it is certainly more simple. Some would say that means it is
better, and invoke principles like Occam’s Razor. But what if
communication is naturally, properly, better when it is complex?
Maybe. Maybe relationships will continue to be more complex
than any tool created to manage them. But I’m just a guy, so I
never understand human relationships anyway.
Zuck, I'm told, has no material clutter in his life, and sleeps on a
mattress. He certainly has no clutter in the office. There is his
small white ibook (like Aaron) and not much else. Aaron
decorates his ibook with stickers, but Zuck’s is plain white, like
his “interrogation room” named closed office.
98 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
I speculate that Zuck has no need (at this time) for material stuff,
because his life is full, with Facebook. He is satisfied. Also, for
busy executives it is beyond obvious that whatever is stacked
somewhere will never be used, but that’s actually true for
everyone. Engineers didn’t used to be like that. I remember when
you weren’t an engineer without a shelf full of O’Reilly books,
which you’ve read and refer to regularly, and piles of hardware
(which you built into robots and stuff in your spare time) and
technical magazines and software which show that you are in the
information flow. Now real engineers seem to have nothing on
their desks, and I too am slowly abandoning paper. What
happened?
Finally smart people have reached and come66 to terms with
information overload, and O’Reilly is turning to Safari virtual
bookshelf, and a PDF distribution channel. At facebook, most
engineers have empty desks, or just a few notes which get
naturally thrown away. I wonder if they’ve really simplified, or has
the clutter just moved online, onto virtual desktops covered with
icons, and onto thousands of backend servers.
Clutter is bad, whether it is on a desk, on your laptop’s desktop,
or spread for you throughout the internet. 500 friends is clutter.
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66 I’m coming! Wait up! If I can do it, anyone can. When I was a high
school debater, we had to cart around our 10 boxes of paper evidence. Even after
a house fire taught me that “stuff doesn’t really matter”, I’m re-reading How to
Simplify your Life (a Great book) and Again clearing off my desk.
Having overlapping unconnected friends on 5 social networks is
clutter. But good, rich complexity isn’t always clutter.
It’s okay to have your photos on Flickr and your videos on
Youtube and your personal information on your own Yahoo
hosted website, because each one is better and cheaper at its core
service. It’s okay to go to several search engines when looking for
something, because they really are different, and diversity is
good. A google-only world would really suck, as an M$FT world
came really close to sucking. And as social networks move into
more vertical niches, with specialized tools and features for each
one, you may find your internet social life is complex. But having
the same information in 5 social networks is clutter, so I predict
successful social networks will collaborate.
How do we deal with the reality of Friend clutter? In the real
world, we do it by ignoring people. I resolved my college friend
clutter by losing touch with everyone from college. That’s sad.
But I get by. Will I do that again with my current circle of friends
that happens to be centered around my kids’ school? Do I do that
every time I change jobs? Or with my church community every
time I leave? Is this why Americans have so few real, deep,
lifelong friends? Is it just Americans or Homo Modernus? In Japan
also, as people lose their rural connection to place, and their life
long employment system connection to company, the lifelong
friendships everyone had and had taken for granted are
weakening.
100 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
Facebook ensures (as long as people use it) that we’ll never lose
touch with our old friends. They’ll just stay at the bottom of my
500 person deep friends list, and Facebook with fancy algorithms
will figure out what information I care about within that huge
mash of activity among my 500 friends.
However, having a pile of 500 anything is clutter. On google I
have a pile of billions of items, but I never get to see it, since
google shows me only a beautifully simple single box that will
fulfill all my wishes. Google with gmail is trying to do that for me
with my email, where the “archive” button means “don’t worry
son, just let go”. Today on Facebook, I can’t archive my friends,
and it would be rude, sad and maybe wasteful to delete them,
so... even if it is someone I don’t care about anymore, if they
update their profile every day, they are at the top of “MyFriends”.
On LinkedIn I have 270 connections, all of people i really know,
and on facebook I have almost 100, and I have at least 100-200
friends and acquaintances who aren’t on any social network yet,
so I need help organizing this clutter. Among people I know, the
main online strategies I see are “respond when contacted” and
“contact when you need something” and “find interesting person
to chat with when bored” and (years ago) “bond with my target hot
chick and all friends of this hot chick”. These strategies don’t
scale, are not especially nice, and probably wouldn’t really get me
what I most want in life. If I used Facebook heavily, I’d lose touch
with people who are not on the system, even if they are more
Karel Baloun 101
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interesting or important, just like I have a hard time staying in
touch with friends who don’t use email.
Currently, social networks have really been successful in niche
social segments, with Myspace comprised of overlap from the
music/entertainment, young, and sex-driven segments67.
Myspace is an open network, where any member can see and
friend any other member, which allows for this overlap to exist,
where members from different segments presumably successfully
ignore each other. Closed networks like Facebook serve their
target segments well, and need to figure out the cross network
overlap, both on their own site and across the internet.

The Future of Social Networking

The Future of Social Networking
Quite simply, the future goes to what works. Facebook works;
let’s explore others. Social networks are emerging like
mushrooms and earthworms after a rain; many will be eaten,
some will be trampled, and most will just live short lives before
giving way to another generation. “What works” means, it has to
immediately improve my life, without much effort and with instant
gratification. Conversely, it must not annoy me. Within the
confines of my own hedonistic use, it must create more value for
the community of users. If this benefit of community gains scale
exponentially for small groups, the site will grow explosively.
Lastly, it has to work financially for the site: the service can’t be
much more expensive to produce than the site is able to monetize
it.
Steve of Youtube, I’m talking to you, about your genuinely useful
site. What’s that? Oh I see, you can’t hear me because you are
talking to Larry and Sergey right now about how you really are
worth more than a billion dollars because you are so essential and
widely used, showing 100m videos a day, but that they need to
buy you this month, no - actually right now - before the next
bandwidth bill arrives, because if they don’t Yahoo, Fox or Viacom
will. Congratulations, Steve! And after your amazing 16 months
achievement, I’m glad you can say “It’s still fun.”
Let’s look at three similar, not niche, hot social companies, and
see whether we can evaluate their likelihood of success: Flock,
Karel Baloun 83
I’ve found something to put here. Your turn.
Blueorganizer and Diigo, in the interesting order of decreasing
user commitment required. Significantly, this is also in the order
of increasing benefits of network scale. Alas, I show my hand.
Flickr, myspace and facebook are clear winners in explosive
usage. Many other sites have a core set of dedicated niche users.
We’re looking at these others less to review specific
implementations, and more to understand the space and the
future.
These three sites all share the ambition of creating community
around the browsing experience, and integrating people’s data
streams from disparate websites, for for the people’s convenience
and for their trusted friends to see. I personally see these
ambitions as extremely important, and I can’t overstate that they
may be the short term killer app of the Web 2.0 internet.
Flock is the social web browser. I met the founders of Flock at
OSCON, 2005 in Portland, Oregon. I was walking to a rock
climbing gym for a workout, and I met the founder of Plone
walking on the street, and he disclosed their secret location. It
wasn’t meant to be a secret, but that explained why the venue
only had about a dozen people in it. But that was okay, because
having a lot of people would have distracted the Flock dev team
from completing and publicly releasing their first beta version,
during the party.
I must first disclose that I have one financial interest in their
success: somewhere I think I still have a “Get Flocked” t-shirt from
84 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
that party, and on the day they overtake IE, I will sell it. At the
party, I learned that the mozilla foundation gets a boatload of
money from Google for making them the default start page,
counted in the $10Ms, and that there is significant political
infighting over than windfall. I didn’t learn what was Flock’s
financial model for success.
Flock installs very easily, and the initial integration with Flickr/
Photobucket for photos is very simple. After that it seems to work
much like Firefox, and my photo stream is at the top. On the site
I have two hints of a committed global user community of
something over a thousand installations, as counted on their “map
of flockstars” and their “i flock” button downloads. So what is my
immediate personal benefit to using Flock? I’m not sure I’ll ever
find out. And I have at least the motivation that I want to write
about it, and not look completely ignorant. But I, along with the
rest of the mozilla-go-kick-some-IE-ass fan club, wish them well.
Regarding Blueorganizer, I must first disclose that I have one
financial interest in their success. Amazingly I was able to
register blueorganizer.org, weeks after the launch of the product,
and blueorganizer.com has a squatter from Wyoming who took
the domain 4 months ago. This doesn’t immediately give me
much confidence in their likely marketing success... did they just
not think of it? Or were they so married to the color blue from
their company name and their idea it’s an “organizer” that they
committed a launch to it even after they knew they couldn’t take
the dotcom address?
Karel Baloun 85
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TechCrunch gave Adaptive Blue a glowing review. Blueorganizer’s
structured approach to user information accrues valuable
benefits. The default restaurant and other commercial data they
show in the big left panel, from the moment I install them, is so
low quality and so irrelevant to whatever my mission is in the
main browser window, that I feel a strong urge to uninstall it.
While it is important to launch fast, do it with only a small enough
feature set that is truly compelling, and don’t force unready, nonuseful
features to early adoption. Adaptiveblue probably knows
their default content is not useful, so they are showing it as an
example of the great potential of the product. But unless it
immediately does something for me today, I (and everyone else)
will not go through the trouble of adding content to make it
useful to me tomorrow. Blueorganizer shows it’s potential loudly,
to cover for the immediate lack of any initial benefit. Speculate
about this form of service evolution: blueorganizer collects a map
of my friends from the facebook readonly API, and all of our posts
from every website imaginable, and display ranks them. In this
way it could become a personal publishing platform and friend
news service.
Diigo installs easily, but has the initial annoying habit of
preempting the Firefox double click text selector. The
advantages of scale most accrue when Diigo based annotations
become widespread enough to be the standard way of
commenting on websites. Indeed, this “alternate” web could be a
fun democratic alternative to simple web presence, allowing
visitors to effectively write graffiti on pages of disliked sites.
86 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
Unfortunately, at this time, all comments have equal standing,
whether they are interesting or crap, and whatever the credentials
of the author and their relationship to me. Such useful ranking on
metadata will come. As will spam, and a spam comment I put up
on the “what’s new” core Diigo site page lived there for days.
The two best, winning features of Diigo are first that it works on
top of my current social bookmarking service (whether that is furl,
del.icio.us or something else), so easily I can cross-post to
multiple services, to show my activity to all of my friends
regardless of which one they are using. Unfortunately, it doesn’t
support Furl’s category, ranking or page clipping features, which i
use heavily. Second, it allows me to markup/highlight pages, and
send them to other people who are not registered with the
service. So my highlights are visible publicly or just privately to
anyone.
Diigo’s challenge is making sure everyone new to the site can
understand how they can immediately gain value from the site,
and get them to just do that, until they want to see more. Their
front page tries. But maybe people just don’t read. I didn’t. I just
got annoyed that it took over my text highlight functionality to
always show me a new diigo menu. With Flickr or Facebook you
are using the site in reader mode before you are ever asked to do
anything, and often the asking is done by your friends, not by the
site. The Diigo service is far from easy to start using at this time.
And if you kindly indulge me only this one in this entire book, I’ll
put my red hat on, and say I just don’t like the word Diigo; I don’t
Karel Baloun 87
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feel like Diigo’ing anything, or asking my friends to Diigo
something, whatever that means. If they help users slide into use
and few share my visceral aversion, and thereby they get critical
mass, this product design will really succeed to reach its lofty
ambitions.
Like these, Facebook is a prototypical Web 2.0 company, and I
can say this with complete confidence, because I will now
conveniently redefine Web 2.0 for my own purposes, just as every
other typist is doing. I can say that this social collaboration
explosion IS Web 2.0, so we are living in the very center of
internet evolution.
For me the key feature of Web 2.0 is distributed community, since
this is what the internet can uniquely do better than a desktop
application, and than a neighborhood street potluck. With Ajax,
scripting languages like PHP/Ruby/Python, application
frameworks like PHP/Rails/CMSs, and web APIs from just about
every major site like maps.google.com, new sites are now
naturally built as fast prototypes which integrate existing sites
and features. Facebook was born out of this soup, and it will
thrive as long as it keeps riding that trend.
Facebook looks properly committed here with the release of its
developer API, and immediate interest by over one thousand
developer users in the first four days. I don’t understand the
security model for protecting sensitive data, beyond the threat of
being shut down for abuse. Also, the valuable relationship data
stays property of Facebook, whereas some web 2.0 definitions
88 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
would prescribe a more distributed ownership responsibility, or
one which rests with the individual user. Anyway, the API may
produce a flood of creativity like the yahoo and google APIs
inspired.
Ajax (used for example on the facebook NCAA March Madness
brackets) is very helpful to Web 2.0 because it makes it easy to
interact with web data services, which can be anywhere, including
on your own site. Even plain old javascript is nice in that it speeds
up the response back to the user, most noticeable in highly
interactive applications, and javascript frameworks like prototype,
make such development easier. Facebook doesn’t use prototype
or any other frameworks, usually preferring to do all application
engineering from scratch.
As noted earlier, Web 2.0 emerges as building a site is easier, so
the field is bustling and crowded. Social bookmarking services
like Furl and Del.icio.us, let me keep forever what I’ve found on
the web, and show me what my friends are reading (which is
usually much better than the daily news), and help me find other
people with similar interests, so I can see what they are reading.
Digg shows me what it important in the news like slashdot with
editors used to, but digg is more open to popularity cliques and
gaming, because there is no concept of friends, networks or
groups.
Let’s look at two other generalized social network competitors:
wallop and multiply.
Karel Baloun 89
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Multiply.com is an interesting competitor without a niche market,
and it is slowly growing up towards the Alexa 500, succeeding
because it focuses on “real world networks” of friends. At this
time, a lot of users seem to have exactly one connection
(themselves), but that vision is correct, and the site is seeing
active development. Interestingly, Multiply has enabled users to
categorize their friend relationships, a first step towards
classifying which friends are closer or more important. On this
point, Zuck has intentionally decided to collect Facts about how
users know each other in the Facebook social map feature,
instead of letting users make classifications. Facebook intends to
algorithmically compute relationship closeness based on Facts
and site behavior, more correctly and without the trouble of users
maintaining it themselves. Like Facebook and Myspace though, it
wants to own the user, providing more and more features (blogs,
photos, videos) all locked within the small pond of its own site. A
Web 2.0 trajectory would predict more cross site integrations,
those which appear natural to users, not necessarily those
indicated by company executive planned corporate mergers.
90 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
Nevertheless, facebook is the clear leader in the serious social
network game63, and has an ambitious plan. The lead and
momentum are with Facebook.
Facebook is coming out of its summer lull, and with the new
freshman class infusion should approach 10,000,000 (10m)
members. Facebook, with the 2006 entry class, is amazingly as
high as ever, in the high 90% of target audience signing up for
and heavily using the service. While both Bebo.com (~25m) and
myspace.com (~70m) claim many more members, the real
question for a social networking site is how many active users a
site has, and how much the site has become a part of those user’s
lives. Of those 10m facebook members, over two-thirds typically
visit the site every day. Over 90% of users who have ever signed
up, continue to use the site today. Myspace.com and bebo.com
did not release those numbers to me, but I bet they are not as
strong. This says that Facebook _works_ for users who try it.
Will Facebook work for other non-college users? Will it continue
to work better for college students than any other, even new, site?
Every large, successful website has a powerful vision of service.
Google, Ebay and Yahoo all started with a simple, powerful vision
Karel Baloun 91
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63 myspace is the leader in pageview and members. but as an open network, i
don’t think (smart) people really feel to be themselves, so i believe they (like me)
are not genuine or serious on myspace. i don’t have evidence for this, yet. but
consider this - a facebook profile is tied to a single email address, so is inherently
valuable, while with myspace you can always start again. I’d bet you again,
without evidence yet, that a lot of those millions of members are in fact multiple
accounts.
on which they executed to a very high level of completion. Having
a simple story, executed well, is also a great way of becoming
bought, as Paypal and Overture demonstrated.
Facebook has a big vision, but it is more complicated.
Google's big vision: enable people to find stuff on the internet,
clearly the most important and challenging task on the internet
today. I heard during google's early days that the company's goal
was to make finding any information on the internet easier than
finding it on your own desk. Well, now with everyone’s desk
becoming clear and simple, they’ll need a new metaphor. Best
estimates say the search game is in the 2nd or 3rd inning, with
many more opportunities, but Google's success has come from
how far it progressed towards its vision.
Yahoo's vision, which I've never seen clearly articulated, is, i think,
to be everything to everyone, so that anything one wants to do a
lot on the internet, can be done through Yahoo. Even in Japan,
guess hoo helped me plan out my train itinerary, and our friend is
running her small japanese candle business on the Japanese
yahoo network.
Microsoft dreamed of a PC on everyone's desk, and may have
gotten there, but people now are seeing that we don't want a
windows PC on every desk. We'd rather have an Ipod in our ears,
synced to some laptop and cellphone, playing games on our LCD
TV, all enabled by linux based servers somewhere, taken care of
by someone else so that I don't have to worry about it. Oracle and
92 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
Sun failed at their network computing attempts, maybe because it
wasn't their fundamental vision and passion. Apple is more like
Sony in that they can design any kind of consumer device, as long
as it's really cool, and the media savvy ipod happened because
Steve Jobs is a marketing guy with a foot in both entertainment
(from Pixar to being the largest shareholder in Disney) and
technology worlds.
Google is especially enthralled with the vision thing: “digitize all
printed books”, “replace email, IM and the telephone with gmail”,
“automate contextual internet text advertising”. It is easier to
have a vision about something that already exists or is undeniably
essential, such as a renewable, carbon-neutral alternative to fossil
fuels. Of course a vision isn’t enough - others could execute the
vision better, or the vision could be a threat to someone more
powerful than you, who plays Godzilla to your Bambi64 - buta
grand vision seems to be necessary if not sufficient, at least until
you are big and successful, so now Microsoft can drift and dabble
in whatever they want until their Windows and Office cash-cows
fade away.
Amazon and Google are constantly evolving beyond their original
visions, taking on new challenges and targets. How much should
Facebook adjust and evolve? Which way would you like it to go?

The Global Internet, Global Social Networks

The Global Internet, Global Social Networks
There are now more internet users in China and Japan together,
than in the United States. If the trend of the last 5 years
continues, there will be twice as many internet users in China as
there are people in the U.S.60. The web will continue to
internationalize, and I’m going to need to learn more Chinese,
because the few social networking sites in China don’t have any
English on them.
Facebook has taken off among U.K. college students.
Multiply.com took a big investment from a Japanese company,
and is set to launch in Japan. Friendster and Orkut were big in
Asia and Latin America, so quickly that it hindered their U.S.
based operations. A Chinese knockoff of Facebook, Xiaonei, was
launched in 2005, but if it is taking off, it’s doing so slowly.
Perhaps it is a result of bad karma: the IP theft was so blatant that
they launched with the facebook stylesheet in its html source,
without even bothering to rename it.
Or perhaps it isn’t serving the right needs, because its rules are
different in very interesting ways: you can change your page
background and music, you can count and see everyone who has
looked at you and see how many hits someone else’s profile
received, any email address in China works to create an account
that can see all profiles.
Karel Baloun 79
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60 detailed world internet usage statistics are at http://
www.internetworldstats.com/stats.htm.
Even North America shows globalization - Canadian AirG has a 10
million exclusively mobile phone users, including a million strong
spanish-speaking community Conexion Latina. Korea’s largest
mobile phone operator just launched their Cyworld product into
the U.S. market, with clear global intentions.
Building a basic social networking site is not that hard: Zuck and
Dustin did it in a few months. The product needs to speak to the
needs of its users and gain their trust. Facebook is now, in
English, at (only) the most prestigious colleges in India. Just
speaking technically, it would be very easy to localize the site to
any language. I guess Facebook is trying to center its focus. The
day will come, but will it come early enough, or will a local
competitor dominate? Will it be you, either with a vertical or
regional adaption, with some twist?

Facebook, your Friend in the online world

Facebook, your Friend in the online world
People will like whatever takes care of them. Facebook takes care
of its users and its employees. If our government succeeded in
taking care of us, instead of killing our soldiers in wars of choice
and choosing hurricane response based on political
contributions59, we also will come to believe again that “I'm from
the government and I'm here to help.” Facebook helps its users
get what they want in college.
Facebook gives users what they want, which for college students
is information about their friends and school mates, for the
purpose of, well, um, sex. And fun social events, which lead to
sex. I was there once, well before facebook, and it was a great
time, but facebook has greatly streamlined the process. So
students continue to love it. Yes, I oversimplify, but Facebook’s
genius has been identifying the core needs of its users.
Social networking needs to fulfill a purpose, or people will not go
through the trouble. In college, Facebook lets you know your
peers, to a depth and breadth which was otherwise impossible.
Turns out that some high school students and college graduates
need that too, if not as passionately.
76 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
59 The governing ability of our Resident is critiqued in a highly unbalanced fashion
in Crashing The Gate, which also discusses the power and future of the internet in
a political context.
As people get older, we don’t as much need to find out about the
new people around us. We have the friends we need, actually
often more friends than we have time to properly keep. We need
to know what’s up and what’s new, with the friends we have. We
need to network for business, so there’s LinkedIn. The more user
needs Facebook can fulfill, the less will competitor sites be
necessary.
Facebook also fulfills the core needs of its employees, at least its
engineers. I’ve long aimed to be a geek so I sit with the geeks.
Engineers want very much to make an impact with their work, to
see their work used. College age engineers see nothing on the
internet as impactful as the Facebook, since it has shaped their
lives since high school, and they see no reason why it shouldn’t
continue to be the place online they and their friends spend most
of their time. So Facebook lets engineers own projects, feel like
they finished them, and that the resulting impact is thanks to
them.
If a service is useful, people will be loyal to it, and give up a lot for
it, though less eagerly countable things like money. With
Facebook, users used to put up with bugs, privacy issues, and
annoying people in their networks, because it is very useful. With
Google Sync (where if my browser crashes or I move to another
computer, i still have all of my same open windows) I am willing to
tell google everything that I am looking at, or with Google
Desktop (where google keeps a copy of at least an index of all of
my personal files on some server) I am willing to show google a
Karel Baloun 77
I’ve found something to put here. Your turn.
copy of everything I have, and I expect them to keep that
information, and allow them to use it anyway they like. Sayonara
to absolutely all of my privacy, but hey, that’s okay, cuz they are
not evil, and I can’t stand it when I lose my work context to a rare
browser crash. Remember that not evil part, okay guys. Right,
guys? Hellooo. Are you still listening, or have you become huge
and dominant yet?
In what other ways will Facebook become my online Friend? Will it
somehow change the world, starting with its political election
focused groups and candidate profiles, as blogs may be changing
politics? Will an even deeper or more multifaceted purpose for
Facebook appear? Since you’ll be shaping the future through the
way you use the site, or the way you encourage and build
alternatives, what do you think?
LinkedIn is for improving business results. Simplyhired.com and
karmaone.com are for getting a job. Myspace is for everything
and nothing at the same time. Facebook is about interests, so
maybe at least it will become a vehicle for enabling progress on
those, by structuring your alignment with similar people, as
shared bookmarks like furl can do for information professionals
like researchers, librarians or authors. So many internet activities
are naturally social, some combination of vertical and general
social networks (collaborating probably, under some common
trust model) will recreate the internet as a social space.

Privacy is Essential, Safety is Presumed

Privacy is Essential, Safety is Presumed
Privacy is essential to trust, and trust is essential to use.
Facebook won in the college space because it enabled college
students to interact with their only natural college communities,
and only with those communities. Each college was isolated and
protected from the rest of the internet, sharing a safe private
space. Building on natural, existing communities leverages their
existing feelings of trust among members.
Not only can you be anyone on the internet, you can also be no
one. On myspace.com I’m K. B. “a naked hippie. no a sociopathic
killer” with interests ranging from “yoga, nuclear bombs, farming”
and right down to “the color teal”. And Tom (the founder of
myspace.com, who has 108 million friends today) and I happen to
have the same picture. Tom. (He had it first.) In other words, I
am obviously not myself on myspace.com. On Facebook, I am
about half of one of my real selves.
This is from a Columbia Spectator Staff Editorial on Jan 27, 2006,
which took me a while to find from my saved copy, because it
wasn’t easily googleable. Fortunately, I’d saved a copy with furl.
Right now, anyone with a Columbia e-mail address can
open an account and access a Columbia student’s
profile. This includes administrators, staff, and also
alumni, many of whom now work at firms that recruit
at Columbia.
Karel Baloun 71
I’ve found something to put here. Your turn.
Facebook is, at its heart, a public forum. The “terms of
use” and “privacy/security” sections of the Web site
make clear that by registering users are, in effect,
publicly releasing all information they enter. This is an
age of limited privacy, and students need to be acutely
aware of this. It is unfortunate but inevitable that
Facebook profiles will have to be more like resumes
than anything else. No one should have to explain to
an employer why they belong to such groups as
“Cocainia” or “I Wanna Get High.”
As far as I can tell, those statements are all accurate. Unless
someone is furling or otherwise saving your profile regularly (and
it only takes one furling or one save-as), you can sweep away
anything bad that’s on your profile, when you get to a point in
your life that it bothers you. Facebook also lets you carefully
tweak your privacy settings and is alert to abuse.
I’ve just read Bebo’s “Online Safety” pages and had a good laugh
at how they pretend to do what they can to keep it safe, by
handing out valuable tips like “your online friends are not like
your real friends” and “don’t tell people where you live”. Taking
their reasonable advice would require a complete change in usage
patterns.56
72 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
56 “Never divulge any personal information that could be used to find or identify
you in real life in a public forum. Password protect this information. This
information includes your real name, address, telephone number, mobile number,
your workplace, health club, or links to websites or other profiles that might give
this information away. It also includes this kind of information about your friends
and family. You may be sharing more information than you intended to by
including a pic with something showing in the photo.”
Kids use myspace to test out various identities, and to get
themselves into trouble whenever they put some real information.
The FBI uses it to catch pedophiles. Otherwise it’s a soft porn site
masquerading as a music site, and I do have to admit that some
of the chicks are quite hot. Go ahead and check it out for that,
but not so much that the FBI get after you.
Huh? Get after me?
Yes, duh. Everyone can know who you are on the internet, unless
you habitually use an anonymizer service57. Your IP address is
assigned by someone who can trace it to your account number,
and your identification information, and they are actually required
to give that to the authorities, and if the request is made under
the Patriot Act, they are actually not allowed to tell you that they
gave your information, or that they were even asked for it. Thank
you my big government friends, for keeping me so safe. Real
thanks Google, for keeping my faith in you alive by trying, alone
among search engines, to stand up to it, while continuing to
create useful features that further erode my privacy.
Karel Baloun 73
I’ve found something to put here. Your turn.
57 There are dozens of service and software providers in this privacy protection
space. Anonimizer.com sells software. FreeProxy.ru, as ironically we count on
Russians to protect our own privacy, has a list of proxies, as well as other
information. The Tor network provides intellectual heft, while HideMyAss is
instantly useful. Since over 98% of internet users now allow cookies, many
websites, including Facebook, Yahoo, Google and my own, require cookies for
authentication and other critical services, and anonymizers disallow cookies, which
at this time limits their usefulness. A proxy that stores cookies anonymously
seems like a logical next step.
My dad, who grew up behind the iron curtain and escaped
illegally, feels nostalgic these days. Younger readers, think Russia
and the communist menace. Remember? That’s why we did
Vietnam. Kinda like “terrorism” and Iraq. Anyway, he used to be
followed around by the secret police. But at least he could
physically see that he was. Now we should, I guess, just assume
that we are.
The globe has shrunk. I’m typing this on a tatami mat in the heat
of southern Japan during the monsoon season. My truly delightful
MacBookPro is seizing up in the heat and humidity. I’m in a wood
and paper house that predates World War II, yet NTT (the
bureaucratic monopoly phone company) would be happy to come
out here and, for no charge whatsoever, run a fiber optic cable to
my house, so I could have unlimited internet access faster than in
my SF Bay Area house for $60 per month. I could be nicely logged
into the facebook, IM and everything, at speeds faster than in
silicon valley, from the southern tip of Japan. But then I’d never
get this book written.
A quick word about Japan and internet privacy. In Japan, there is
never a doubt that the police will find you. They solve more than
95% of serious crimes, whereas American police are lucky to solve
half. Yesterday the morning news was all about the abduction of
a famous rich doctor’s college student daughter for ransom.
Within half a day, the police had found her in the maze of Tokyo,
and captured her 3 kidnappers. They were Chinese and I guess
they thought they were dealing with the Chinese police. If
74 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
civilization will continue, the world police will become more
Japanese, and democracies will pass Patriot Act after Patriot Act to
empower them. And social networks, search engines, and other
hosted web services, greatly enable police and government
observation and intrusion into your private life, by collecting a
tremendous amount of information about you.
Besides obviously public safety, the Japanese do at least two
things very well. They can cover their entire coastline with large
cement nuggets (which look kinda like jacks, but if you’ve ever
played with jacks, you’re too old to be reading this book) and
pave the waterway of every river with concrete. Alex Kerr explains
that this is because cement companies are politically very well
connected. In America oil companies are very well connected, so
California is having a Sisyphus-like challenge raising CAFE
standards to a level even below China58, much less Europe. The
second thing they do well is take care of Japanese people, like
Facebook will take care of your social life.

The Power of the Social Internet

The Power of the Social Internet
At 38000 feet, halfway between Lihue and the Aleutian Islands, on
United headed to Nagoya, I feel incredibly grateful for our
strength. Hydrocarbons give us around 150 energy slaves, which
we, the billion or so affluent first-worlders, have all deployed to
give us all a lifestyle better than medieval kings. We also have a
financial and industrial system that enables us to hire 3rd world
product producing slaves at less than a dollar per hour. Open
Source software, which is basically shared free programming
62 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
resources, drives so much innovation. Thanks to this
infrastructure, which enables me to buy a laptop for around a
week’s pay, we technology workers can make contributions way
beyond what a single, average human being could achieve 10, 50
or 100 years ago.
I couldn’t produce by myself even a single part of this laptop, or
the hardware internet behind it, but there it is, ready for me to
write a few lines of code, or a few ideas in book, and if it is good,
thousands of people will run with it, moving society this way or
that way. If it is not good, oh well, too bad for me, but the
attention of the people and their collected power, will go to some
other person, site or idea.
A few internet companies have revolutionized how we live our
daily lives. I don’t need to worry where I’m going anymore,
because I’ll just find it on google maps on my way from my Treo.
I now have way more free email accounts than I need, and I use
these and IM for most of my interaction with people. My
daughters are lucky I haven’t figured out how to brush their teeth
over IM yet, but since I just learned to fold my shirts by watching
this movie, I’m sure that my facebook peers will be somehow able
to computerize their child rearing when they get to it. Look, I’m
not saying this is good, or bad. I’m just saying that’s the way
things are going.
Karel Baloun 63
I’ve found something to put here. Your turn.
My CEO is 21 years young, and lives his Dream
I am 34 years old, and have landed in one of the few situations
that makes me feel really, really, really old. My daughter Mimoli
asks me why I’ve started to collect a few gray hairs. I tell her it’s
her. I’m the only among over 50 engineers who has a kid. My
baby Elin asks where is her bottle. I ask her why at the age of 34 I
find myself to be the corporate age diversity program.
My CEO is living his dream. Can I? Can you?
On the internet no one knows you are a dog. If you know that
joke, you are old. It’s from way back when the New Yorker was an
important print publication, and it was a comic of dog typing on a
computer. The New Yorker also beautifully demonstrates our New
Media, since it has been owned since 1985 by Samuel Irving
Newhouse Sr/Jr51, aka Conde Nast. When Rupert Murdoch’s News
Corp purchased MySpace initially there was user concern of
inappropriate media concentration and talk of a boycott, but this
completely ineffective effort hasn’t nudged Myspace’s growth into
the #6 U.S. internet property.
Not only can you be anyone on the internet, you are free to
achieve anything you can with the internet. A key image hosting
service, pongo.com which helped kick start ebay.com was thought
64 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
51 who currently shares two prominent characteristics with Mr. Zuckerberg, who is
theoretically maybe halfway to being on the list of Forbes billionaires, where Brin
and Page are #26 & 27 at $13B.
up and run by one lady in Sitka, Alaska. And a few 20 year olds
can create the strongest social network in human history. So
anyone can achieve anything.
So what is it that holds us back? Why isn’t everyone a Mark
Zuckerberg, starting powerful internet applications in their spare
time?
Belief and vision are key part of success. Zuck was blessed with
an amazing early adoption rate at his first schools, so it didn’t
take complex analytics or fuzzy math to project that other schools
would behave similarly. Even an outsider like me or my seniorexecutive-
type friends David or Dion could judge that this was
likely. So he could see it, and rockstar like media interviews
reinforced his belief. Also, Zuck was blessed with two early
executives who could powerfully share his vision. Sean Parker had
seen rocket like success first as a founder of Napster from his
college dorm room and second as a founder of Plaxo. Matt Cohler
had seen it at LinkedIn as well as from his perch as a VC analyst.
For them, phenomenal success was a natural course of business.
I’m challenged to keep this dream vision. I meditate on it
regularly, and I’m certain I’ll soon get to a point where I can keep
it. Protect it. Nurture it. Feed it. Literally like the flame of
creativity and drive within me. It helps that I’ve always been the
dreamer type, in that I easily get excited about a powerful idea,
and can think only of it, of making it work. Keeping that dream
vision strong all the way to the completion of an idea, that is what
makes greatness.
Karel Baloun 65
I’ve found something to put here. Your turn.
But I’ve lived through the dotcom collapse 6 years ago, and even
before the dotcom frenzy, I was at Geoworks, which lost to
Microsoft at least twice, before selling its engineering team to
Amazon. Geoworks had excellent engineering, with a tiny
memory footprint PC windowing system well before windows that
ran amazingly fast on my first Pentium laptop in 1996, but was
serially murdered by business failures. Many dreams foundered
on those rocks.52
A quick Geoworks aside, Microsoft has smashed many companies,
including Netscape, Corel, Apple (once), IBM (piecemeal), Sun
(maybe) but Geoworks has the unique distinction of getting
smashed by Microsoft twice in exactly the same way. In the
cartoon below, replace Rove with Bill saying “We will go directly to
the OEMs53, give our software away for cheap or free, leverage our
dominant position in other markets, and persist until you run out
of money.” and you have how M$FT beat Geoworks (the donkeys)
in both the PC and mobile handset markets about a decade after
each other.
66 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
52 I feel like a serious Silicon Valley old timer when I write that I was nearby at the
founding of Ebay. About 2 miles from where Omidyar was typing our the initial
perl code for ebay, I was on the same old ISP (best.com) typing perl code for
agoodstore.com, which was going to be a marketplace where the profits from all
sales were given to the charity of the buyers choice. On Memorial Day 1996, the
ebay site and I got the same amount of traffic, according to my own logs and “The
Perfect Store” by Adam Cohen. This is the original source of my cynicism in my
own business acumen, or maybe persistence. If you are a Talented Business
Person free of dotcom cynicism, I’d like to try that idea again.
53 Original Equipment Manufacturer. Companies which make, market and
sometimes directly sell PCs, e.g. HP, Dell, IBM (well, before they sold their PC
business away to a Chinese company), Sony.
A second way this comic resonates with this book is that
Facebook is a rare company that doesn’t benefit much from
history or experience. There is no clear “again” in the social
networking space. Each new successful social networking entry
brings a new angle, new features, new strengths. “Making money
on the internet” is a known challenge, as are technical challenges
around scaling php/apache websites and massive storage
solutions, so experience in these known problems is valuable, but
in the overall product and business, Facebook must create
everything from scratch.
Karel Baloun 67
I’ve found something to put here. Your turn.
So I have some lingering business cynicism shared by many late
90s dotcom investors and one canine sock puppet. I loved my
early facebook days so much, because Zuck and company are
completely oblivious to this cynicism. And therefore immune to
being paralyzed by it. Many Geoworkers cured themselves and
went onto greater things54, but only by believing they could
succeed, and seeing that in the business environment around
them, such as the lucky folks at the Seattle office who were sold
to Amazon.
I leaped to Looksmart, which proceeded to lose the search and
portal wars to Yahoo and Google. One fond Looksmart memory I
have is of an executive, at an all hands meeting Q&A session in
mid-1999 at an expensive San Francisco hotel ballroom, being
asked about purchasing Google, and replying to everyone that this
would highly dilute Looksmart stock.
I’m eternally grateful that I could bask in the Facebook optimism
bath for many months. May you all have a chance to experience
something like that! It is heaven for the human spirit. And it
really makes folks strive to make it real. Whether it succeeds or
not in the end doesn’t matter, because I believe the memory of
this feeling can persist, survive the failure. It is so wonderful, that
the memory of it outlives anything that follows. I arrived at both
Looksmart and Geoworks too late in the lives of those companies
to feel the startup fire.
68 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
54 such as David Thatcher’s securities fraud which took down Critical Path. And
going to CommerceOne to get shafted by Microsoft again.
If there is another dotcom like shakeout after the Web 2.0 boom,
how many current wonder-boys will see dreaming as something
they did in their 20s?
For even without those experiences of colossal, dramatic failure,
for any good idea there are countless critics and numerous
competitors. So we try to stay away from negative, critical people.
But one of them is always with us - our inner voice can spew fear
and self doubt, whenever we let it, if we don’t train it. Are my
ideas worth anything? Maybe everyone whatever I’m thinking,
other people know it. Maybe my best idea, some smarter guy at
google is already finishing it.
I don’t think Zuck has ever had much self-doubt. Why would
anyone pay attention to me? Or take time to use what I have built.
Everyone is so busy. Even my friends, even my good friends, can’t
always invest time to look my ideas, and if they can’t, why should
I believe anyone else will? Obviously, Zuck wasn’t always listened
to, and his first few public ideas didn’t take off. Being naive so
oblivious to doubt and fear can cover for a while, but reality will
just make any such weaknesses more apparent later. Zuck isn’t
naive. He pragmatically just tries again with his next idea, and
persists tenaciously into any success.
For every success, there are hundreds with the same or similar
idea, who gave up, couldn’t find or keep the passion to succeed.
Every one of them would have faced different challenges towards
success, some being prepared in these ways, others having these
strengths, others having help in these areas, but the passion
Karel Baloun 69
I’ve found something to put here. Your turn.
which could have lead to success is a flower which withers in selfdoubt,
criticism and loneliness.
The emotional fortitude I’m writing about is essential for winning
with a startup, and it applies to any creative endeavor.
Many scientists and artists had rich patrons who commissioned
his work, but most inspiring, purely amazing are the stories of
men and women who pursued an idea, devoting their lives,
without external reward or recognition. Many of these passionate
strivers are lost to history, few traces last more than a millennium,
and even fewer of those keep any of their original meaning55. Will
Bill Gates, Linus Torvalds or any of our generation of technological
heroes be remembered in 300 years? Will Google and Yahoo be
superseded, just like so many other high-tech companies in the
last 30 years, including DEC, Compaq, Alta Vista, Atari, Silicon
Graphics, etc. How can I create anything really meaningful? What
is the average age of the billion dollar companies atop the the
alexa top 25? It must be less than 10, and why does that feel like
a long time? Or are we all really just aiming for money in the
dotcom lottery?
At Facebook, we all believe that we are building a social platform
that will really change people’s lives, and continue to be useful for
a long time.

How does Facebook make money?

Making Money
How does Facebook make money?
Easily. However it wants. Ooooh, you bought this book to get
some real insights. Gotcha.
But first, let me tell you how this book is going to make me some
money. (Hint: it is the same way Facebook makes money.) On the
website, I’m going to sell some ads. If you happen to own or
manage a major brand, and you want your brand permanently
associated with the glory of Facebook, in black and white on
beautiful recycled paper no less, just send me a check47. Every
56 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
47 Given global warming (climatecrisis.net, http://www.technologyreview.com/
special/oil/) and peak oil (lifeaftertheoilcrash.net), I think i’ll not buy Japan for a
cool $7 million.
word here is the god honest truth48, except where dripping with
sarcasm or, worse yet, humor.
If only we, our own lowly and humble selves at fbbook.com, had
the market visibility, relationships, and cream-of-the-internetcrop
sales team that Facebook has to reach potential markers. I
also wish we had complete and full penetration of the college
demographic. While this wasn’t true a year ago, now I suspect
Facebook quite easily gets interest from anyone who has a
product targeting the college age population, without even really
trying that hard.
Facebook, similarly, makes money in two ways: ads on the site
with super fancy targeting (based on the information users enter
into the site about themselves) and sponsored groups, events,
notifications.
In the summer of 2005, I enjoyed a lunch with Apple’s Dave Morin
and Matt as we all discussed the natural fix between the Facebook
and Apple brands. Dave architected the first big marketing deal
on Facebook by creating the Apple Students Group. The group
was created around the idea that college students love well
designed, cool technology, especially as related to music, and this
would be a great place to generate a worthwhile conversation. So
I heard the initial chat about whether Apple could co-brand a
store on the site, or co-market iTunes. The group now has a half
Karel Baloun 57
I’ve found something to put here. Your turn.
48 Sometimes I have paid affiliate links, which are still rare in books; dunno why.
million members, and iTunes has given away almost 250 million
free songs to students.
I bet the Apple and Facebook relationship will continue to
strengthen over time, despite the massive advertising deal with
Microsoft, both for sponsored listings and contextual ads.
A third way facebook makes money is with Flyers. This method is
most fascinating because it is actually a facebook feature which
just happens to bring in money, by enabling user advertising on
their own network. If Flyers were free they would be actually less
useful, because limiting postings to paid advertisements reduces
clutter and spam. Facebook Flyers are superior in every way to
archaic posting of leaflets around campus.
So, Facebook make money in three ways: sponsored groups,
targeted ads and flyers.
What if a social network company wanted to make a lot of money?
Lets consider this from two perspectives: that of a company with
good intentions, and that of an evil company just out to make
gobs of cash, with the inevitable slippery slope between them.
Many innocuous methods exist for ad or brand placements on a
social network site. If I list Oreos as one of my profile interests,
this could display with a (tm) symbol linking to Nabisco’s site, and
the Oreo link click-thru to everyone interested in Oreo’s could
have Nabisco and competitors paid links at the top. Or Oreo
58 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
could even be in Nabisco’s preferred font. Or if I say I like Macs,
that statement could be replaced by the Apple logo. This might
look annoying, or look like selling our to corporate masters, but if
we just look only at the words, at the content, the actual
information and location doesn’t change. People clearly come to
Facebook to look at content, not to click on ads, so blending the
content with the ads is very compelling.
If a closed social network is tied or based to a specific location,
this also opens up many opportunities.
A site could sell or otherwise offer valuable marketing reports to
a wide variety of interested parties, since by aggregate, the social
network data embodies what memes and products are hot among
its members. So this aggregated information is valuable to
outsiders, and the social network company adds value by
collecting, filtering and analyzing this information.
A site could even sell user content, such as a aggregation or
collage of nice photos49, but while some user agreements do not
prohibit it, I suspect it crosses a line beyond which there would be
a user backlash.
A site could partner to sell products to its audience, both by
sharing its brand and by offering ad space for products available
at “its own store”.
Karel Baloun 59
I’ve found something to put here. Your turn.
49 Actually, this url probably got into google by being linked from another site
(“site:facebook.com sterger”) and is even hotter.
In general, social network websites have tremendous latent value,
for two reasons. Both reasons are amazing, because all of the
value is provided by the community, not by the site, or by
anything the social network site does. First, within a social
network, users want to demonstrate their status and value, and
they will pay money for “pro” badges (flickr) or for virtual flowers
(hotornot) or for other virtual digital goods. These, being
completely virtual and unreal, have no tangible value whatsoever,
but they accrue value from how they are used and viewed within
the social network. Second, the members of a social network have
a lot of knowledge and skills, which are inherently useful to others
in the network and to outsiders willing to pay money for them. If
the site empowers users to be useful to each other, such as by
giving a product/service recommendation interface, the site can
take a cut of the value users have to each other. The founder of
hotornot.com describes his unique and long surviving dating site:
Two strangers meet in a bar, one smiles showing the other person
he thinks she’s hot, she smiles back saying her eyes agree, but
someone is going to have to buy drinks, and the bar takes a cut.50
People wonder why social networks could have billions of dollars
of value. While I’m not sure how much value a billion dollars
should have, whether denominated in gold, oil, big macs,
mcmansions or green pieces of paper, I do believe social networks
have a billion dollars in value relative to other internet properties.
60 Inside Facebook
Copyright, Karel Baloun, 2006. All rights reserved.
50 Actually, what he said was “someone will have to buy drinks, and that someone
will be me.”
First, Facebook either is profitable or is really close. Social
networks are not especially expensive to operate. Engineering
costs predominate, and writing social networking web
applications isn’t hugely difficult, which is why, when you think
about it, there are so many of them. Second, the network effects
of social networks (once you are on one with all of your friends,
you’d all have to move to another one together to have shared
value) and the personal effort invested into entering all of your
information and your site-collected usage history, together create
a high barrier to enter for new networks. Which is why the leaders
keep big leads, and are frantic about expanding market share,
and competitors target niches to establish themselves. Third, as
I’ve shown above, and many business people smarter than me will
show you better soon, the monetization of social networks has
only just begun.
Facebook may print money.
I’d like to see a Facebook IPO, now. But see, that’s why I’m not
running the show! Apparently, I have yet to read Seth Godin’s
Small Is The New Big.
Certainly there are advantages to staying privately owned, such as
being able to avoid complex laws and reporting requirements of
public companies. A common reason to go public is to raise cash,
and Facebook doesn’t need that. Another reason is to convert
equity to cash. A main reason against, which the google founders
partly managed to mitigate by having a highly irregular IPO with a
class of shares that had much less control/voting power, is a loss
Karel Baloun 61
I’ve found something to put here. Your turn.
of control over the destiny of the company. Zuck carefully
cultivates and maintains his effective control.
While giving equity is printing money, the money has only
theoretical value, until it is exchangeable. The other startup exit
strategy is to be purchased, either by a public or private entity. If
public and mostly an equity deal, it’s like an IPO, except that
someone else has already done the paperwork. No one knows
when any such event will happen, but I’ve seen Zuck be very
reasonable when listening to advice.
“I’ll do X until I get bought by Y” is such a common internet
business strategy, with Google, Microsoft, Yahoo, Cnet, and the
panoply of media companies as suitors. Zuck has always intended
for Facebook to become a viable, profitable business on its own.
Wise, as it maximizes flexibility. Lucky he enjoys running it so
much.