The Many Challenges of Social Network Sites

In this blog, I strive to provide a balanced viewpoint of both the benefits and challenges of a web strategy, it’s easy for us to become over-hyped and then fall right into the pit of exuberance.

From white label social networks to existing social networks like Facebook, MySpace, Bebo, and on, there’s been much hoopa raised. Yet, we should always remember the challenges that are facing these tools, as there are many difficulties to overcome.

---

The Many Challenges of Social Networks:
Each of the following hurdles can be overcome, but first, let’s identify them.

Difficult to Monetize
Even Google says it’s having a hard time monetizing social networks, why? The use case is completely different. Members aren’t hunting for information like they do on a search, instead they are communicating with each other, and self-expressing. (We’ve data to back that up too), Bakardo agrees. How bad is bad? “Marketers say as few as 4 in 10,000 people who see their ads on social networking sites click on them”

Excess of Players
In the case of the many white label social networks (white label means you can rebrand, and create your own Facebook), there are too many players in the space. As a result, I spoke with CIO magazine and share with them our thoughts on the future of these many products. Consolidation will happen, and many will be irrelevant.

As Marketers Move In, Users Move Out
Remember Friendster? Tribe, or waay back and eCircles? Nothing is new, as communities form, marketers will move in, and in some cases bastardize the experience and the hip, cool, influencers will leave to the next network.

Untrustworthy Member Data
In many cases (I’ve seen reports of up to one-third) of users submit inaccurate information on their profile. As a result, marketing efforts will not be aimed at the right audiences, members continuing to be an elusive target.

Lack of Metrics Makes Success Hard to Measure
For many marketers who want to deploy a campaign on a social network, access to server metrics isn’t always available. As a result, they have to often visually monitor the interaction on the site, or measure click throughs to their site. In some of the more sophisticated platforms, a crude dashboard is provided.

Stalkers and Other Unwanted Activity Ruins Lives
Child stalkers in MySpace continues to be a problem, and in some cases, masking oneself as someone else is easy, and to readily fool others. As a result, one young teen committed suicide from the deception, rejection, and embarrasment from a peer’s mother.

Privacy Concerns Mount as Developers Move In
The great hoopla and community push back from the recent Beacon experiment, launching of newsfeeds, and social networks sharing too much information with third party widget developers puts members at risk, and visibly makes them uncomfortable.

Strings Attached to Membership: Difficult to Leave
According to this NYT article, leaving Facebook is difficult, there are hooks, saved accounts, and ways to continue to reconnect to the site, even after you’ve left.

Plateau or Social Network Fatigue?
I’m starting to see some reports from sources that suggest that the usage of social networks are slowing down, if not reducing perhaps it’s from the endless tasks that occur, or the shinyness has rubbed off.

Successful Networks have hard time scaling
Facebook and Twitter (yes a social network too) are suffering from scaling issues, as a result, their sites have a great deal of downtime or latency. The complicated applications will only increase in intricacy as more users are added.

Loss in workplace productivity “Social not-working”
Companies, organizations, and individuals are concerned about the time wasted in managing social network profiles, in some cases, companies have banned Facebook from their employees, often using Firewalls. (submitted by Beth Kanter and David Mitchell in comments)

Got others? leave a comment
If you’ve got one that I missed, I may add it here and credit you.

10 Considerations for the Startup planning to offer to the Enterprise (and why many will fail)

Lately, I’ve been hearing from more startups that they want to get into the enterprise space. These consumer focused web startups are the ones we know and love with the clever non-sensical names, rounded corners, and domains missing the “e”.

For many startups, having enterprise customers is a great proposition, as it gives the opportunity for repeat revenue from a stable source, partnership opportunities, and maybe even chances for acquisition.

[While many startups are interested to offer their services to Enterprise companies, they underestimate the complexity. There are many overlooked requirements from culture to support that startups just don’t get]

Sadly, while we love these tools on the free open web for our personal uses, many of them aren’t ready for a smooth transition into an enterprise web teams and by serious business folks and executives. A new set of rigorous feature requirements need to be met, including disposing of the ‘fun brand’ and getting ready to support demanding corporate clients.

10 Considerations for the Startup planning to offer to the Enterprise

1) Most importantly, find a business opportunity or pain that you plan on fixing.

2) Re skinning: In many cases, offer a white label tool so it can be rebranded by the consumer.

3) Offer an ASP version as business units will want to adopt without the IT department. (Update: ASP as in Application Service Provider, so a web-version hosted on your servers, so they customer doesn’t have to download any software, or have to rely on IT to do this. Typepad, SalesForce, and SurveyMonkey are examples of this)

4) Later, evaluated offering a software version that IT and Engineering can download and use on internal or secured severs behind the firewall,

5) Build a robust system that won’t fail from heavy enterprise use, sadly, Twitter would never make it.

6) Develop login and permission systems that work with a variety of identity systems, ensure data can be easily transferred to clients, use industry standards.

7) Provide a healthy dashboard and metrics for the clients administrative team

8 ) Hire sales and account teams that have backgrounds in corporate. For initial sales with a business unit, expect to sail through, but expect rigorous testing, negotiations, and detailed contracts when dealing with corporate purchasing departments.

9) On demand support: Dealing with enterprise clients requires a higher degree of support, expect to jump, leap, and spring into action at the request of your corporate clients.

10) Get serious: consider rebranding and refocusing the tool. Refine or create a separate marketing effort to aim for the enterprise space, consider creating a sub-brand.

While it’s sure attractive for startups to want to offer their products to corporations, many have not thought through the implications and requirements to be enterprise class. Quite frankly, many won’t have the aptitude, resources, or time to do this right.

[Many startups will offer to the enterprise, but most will fail. Successful startups offering to the enterprise need to have maturity, and it’s not something that can be masked]

If I’ve missed any considerations, please extend the list, by leaving a comment or sharing from your own blog

A special note about terms: While it would have been so easy for me to use the term Enterprise 2.0 I used every precaution to actually describe and explain the concepts rather than just using that term. I hope that you too become mindful before using that term, as well as Web 2.0. Show your mastery: focus on descriptions and outcomes rather than buzzwords.

A Checklist: Before you select that White Label Social Networking Site

Questions to answer before contacting any White Label Social Networking site (feel free to add additional checkoff points below)

1) What business problem are you trying to fix? What’s broken? What does success look like (without mentioning features)

2) There are different tools for different problems, Are you sure a Social Networking site will fix this?

3) Where are your community/market/users currently?

4) Not sure? Then look again, don’t proceed farther until you find them.

5) Have you considered joining that community before creating your own? You know of the Walmart 10 week fiasco right? Trying to recreate MySpace doesn’t make sense because it already exists.

6) How open/closed to you want your community? Think about long term, does it scale?

7) What incentive are you creating with this SoNet that will drive users to your site and share?

I’m a big believer in using my blog (a one to many communication tool) to make my life efficient, so I may refer you to this post in request.

Consultants please read
Are you a consultant that focuses on evaluating, choosing, and implementing a solution? I encourage you to leave a thoughtful comment below that adds additional knowledge that will showcase and impress others, please no raw pitches. Perhaps add some addition points a buyer should look for.

List of “White Label” or “Private Label” (Applications you can Rebrand) Social Networking Platforms

What is “White Label” Software?
This is software you can brand and integrate tightly into your existing domain. The user experience should be near seamless, therefore any company can have their own MySpace. Kindly do not submit Social Networking tools that don’t meet this criteria, as the list can extend to hundreds if not thousands of companies.

The List
Here’s a list of Social Networking platforms, or suites that you could take and rebrand, if you know of any others, please leave a comment (many of the following are from those that left comments, like Gideon who left quite a few links). Not sorted in any particular order:

BlogTronix
I met Vassil, the CEO, I think it has a chance of giving Sharepoint a run for it’s money given it’s Intranet type features

Sharepoint
Microsoft’s collaboration suite is getting social networking tools for it’s 2007 version, I’m waiting for Microsoft to call me to do a demo.

Five Across
SF company just acquired by Cisco

Community Server
I was looking at this while at a previous role, this is what the famous Channel 9 was built on, as well as Dell 1to1 and Xbox

PeopleAggregator
I’m having dinner with Marc Canter tonight of Broadband Mechanics, I’ll be video interviewing him to learn about his “white-label MySpace-in-a-Box”

Social Platform
Just saw this one, looks pretty interesting. (Update: Feb 2008, now acquired by ONEsite)

SiteLife from Pluck
Pluck already has some other products this could be interesting.

Affinity Circles
This seems to have quite a few educational clients, interesting.

Kick Apps
White label hosted version.

Web Crossing
Social networking and collaboration suite.

Crowd Factory
“Platform that allows you to create a social network site similar to MySpace”

CollectiveX
Doesn’t appear to be a white label, but it’s certainly a Social Network, pretty interesting.

ElggSpaces
“Elgg Spaces allows you to create social networks for your organisation. You decide if the network is private or public.”

Me.com
“Build your own community with SNAPP! It’s as easy as point and click”

Onesite
“Customized white-label social networking partnership solutions for large media, entertainment, and community brands.”

PHPfox
Looks like it has some of the open source apps I’ve used before glued together for a social network. I wonder if this will be a dedicated feature available to most web hosts.

Select Minds
“SelectMinds pioneered corporate alumni programs over 7 years ago and continues to push the boundaries of technology in this industry to provide corporate social networking solutions that help our clients and their current and former employees build and maintain the professional relationships that drive success.”

Small World Labs
“Small World Labs provides the design, implementation, and hosting services for your online social or professional network.”

Social Network Server
“Our platform creates two versions of your site,
one for the Web, and one for mobile phones.”

Sparta Social Networks
“We are a full-service social network solutions company, specializing exclusively in the social network arena. ”

Phpizabi
“With literally thousands of websites powered by PHPizabi including everything from simple friends sites to the most complex networking super sites out there.”

Leverage Software
“…suite of functionality which includes personal profile pages, people-matching, blogs, chat, polling, rss, discussion groups, file sharing, widgets, targeted advertising, and robust customer and community analytics…”

Going On
“Organizations of all sizes can use GoingOn to build interactive communities around their most important initiatives and benefit from the open and compatible “network of networks” environment.”

Momo
“Got a brand? Build your community today and start generating incremental revenue from user generated content..”

Drupal
“Equipped with a powerful blend of features, Drupal can support a variety of websites ranging from personal weblogs to large community-driven websites.”

Awareness (formerly iUpload)
“At the core of the Awareness solution is an on-demand social media platform that combines the full range of Web 2.0 technologies – blogs, wikis, discussion groups, social networking, podcasts, RSS, tagging, photos, videos, mapping, etc. – with security, control, and content moderation. Awareness builds these features into complete communities for companies, or customers use the Awareness API and widgets to integrate Web 2.0 technologies into their own web properties.”

HayStack
“Haystack gives businesses the ability to build social networking capabilities into their websites, encouraging customers and sales reps to create more personal connections. Haystack can also be used to help individuals within organizations connect with each other.”

OmniFuse
“We specialize in rapid creation and adoption of online social networks using our FUSION platform. FUSION combines social networking software with consumer generated media technology to provide a marketing and community building tool for brands, organizations, and other verticals.”

Mzinga (Acquired Prospero, March 2008)
“We enable organizations to easily, quickly, and cost-effectively develop branded, integrated communities and social networks comprised of message boards, blogs, ratings, and chats and to manage them using a single, intuitive platform.”

LiveWorld
“Liveworld builds, operates, and moderates social networks and online communities with a difference that creates real solutions to meet real business goals. We are distinguished by these advantages”

Userplane
“Userplane is the premier provider of communication software for online communities. Five hosted web apps comprise the application suite – each adding core, must-have features to thriving websites. The apps are robust yet lightweight, cross-platform with no user installation, and customizable for a site’s specific needs.”

Ning
“Ning is the fast and free way to create custom Social Websites!”

The Port
“Grow a community and extend your members’ visit to your site. Provide robust social networking tools to stimulate community interaction and foster word-of-mouth.”

Joomla
“Joomla! is used all over the world to power everything from simple, personal homepages to complex corporate web applications.”

eFriends by Altrasoft
“…is an online social networking software that allows you to start your own site just like Friendster and MySpace. The E-Friends software allows members to connect to people in their personal networks and community, creating a new online interactive resource that is based on a trusted network of friends and associates on the internet.”

intronNetworks
Complete graphic and content customization
“Can be attached via web services to any database. User Features include ability to interactively search and filter results of matches out of 1000’s of users in seconds. ” (From comments as I can’t copy and paste any text as the site is in flash)

DZOIC
“start your own social networking portal? If so, then you have just found what you were looking for. Feature Rich User End, Advanced Admin Console, Paid Membership Integration, Flash Instant Messenger and Chat, Fulfeatured Modules”

Boonx
“Use flexible and powerful community software and implement your brilliant idea in real life. Build a community site using Dolphin, and enhance it with Ray and Orca.”

World Web (in German)
I can’t confirm this site meets the criteria, since I don’t speak German

Dave Networks
“provider of an integrated video distribution and social community platform designed to ignite brands.”

Village Engine
“We created a social networking technology as we felt that there were no really good software out there.”

Neighborhood America
“The Trusted Leader in Social Networks for the Enterprise”

Movable Type
Recently announced social features and APIs

Lithium Technologies
Successful Customer Communities

Group Members International
“Outsourced White Label Enterprise Level Hosted and Managed Social Networking Community Platform”

Vibe Capital
“Vibe Capital builds Web 2.0 community software solutions for vertical market sectors”

Social Groupware
“Social GroupWare is an approach to create a Free on-line platform for Social Networking with the most known success story as Business Networking Club of Milan, Italy- http://www.milanin.com”

World Dating Partners
“We build your brand… not ours. Earn the highest income possible with your own branded or white label site. A Free solution to fit your ideas, plans and financial expectations”

Kwiqq
“Kwiqq.com enables online communities for travel, media and football. Our product provides a complete social networking solution ‘out of the box’ and is fully customisable.”

Go Lightly
“GoLightly provides communication and collaboration solutions for community-minded organizations. Our social networking tools give your members the ability to interact with you and each other in powerful new ways.”

Atlassian Confluence
“Confluence is an enterprise wiki that makes it easy for your team to collaborate and share knowledge. Confluence – The Enterprise Wiki. Adding, sharing and finding content has never been easier. These benefits come with all the additional features needed to make it a part of your business:

conVerdge
“ConVerdge is a social media, networking and community building specialist. We help clients around the globe take advantage of the shifting consumer preferences to connect, communicate and share content online. We have created a superior platform that enables us to white-label our turnkey hosted community solution for portals that want to quickly establish themselves with the best of web 2.0 technologies. With Converdge, we empower both large organizations and small businesses to customize, personalize, target, distribute and monetize their brand by delivering a robust, scalable and reliable solution.”

Rsitez
“Group Networks, Social Networks, Photo Sharing, Blogs, Live Chatrooms, Dynamic Searchable Profiles, Videos, Articles, Events, Calendar, Forums, Jobs Database, Private Email, Instant Messenger (IM), user generated content and more.”

Pringo
“Pringo Networks offers a complete social networking and media sharing platform allowing your company to effectively build an integrated online community around your existing user base. Pringo Networks provides the power and flexibility of state-of-the-art social network solution on your site. With features surpassing the leading popular networks, the Pringo technology can offer you and your audience the same functionality as MySpace, YouTube, Tribe.net, Bebo.com and then some!”

FriendSite
Your own Sub-domain. With our social network site, you simply add a sub-domain (an A record) to your website, and this can be whatever your choose… http://members.yourdomain.com, http://community.yourdomain.com, etc.. or even your own dedicated domain name – your choice.

SixApart
“Extends blogging and social media platform to user-generated content in internal and external communities. Movable Type Community Solution (MTCS), a package of social media features built on top of the popular Movable Type 4 platform. The Movable Type platform powers many signature websites and blogs around the world, from the Washington Post to the Huffington Post, from General Motors to Nissan Motors, and from Boeing to BoingBoing.”

Satmetrics (Formerly Informative)
“Marketing 2.0 is about digital democracy and the wisdom of crowds – where prioritized content trumps mass media; and where collaboration and communities of customers drive growth and innovation. Informative provides interactive market solutions that engage customers and identify their top priorities.”

Mixxt
“Easily create a social network that looks, works and feels exactly as you want it to”

Plone
“Plone is a ready-to-run content management system that is built on the powerful and free Zope application server. Plone is easy to set up, extremely flexible, and provides you with a system for managing web content that is ideal for project groups, communities, web sites, extranets and intranets.”

Diso (WordPress)
“DiSo (dee • zoh) is an umbrella project for a group of open source implementations of these distributed social networking concepts. or as Chris puts it: “to build a social network with its skin inside out”.

KREM social networks (Netherlands)
“Realize the potential of social networks”

Social Engine
“Build your own niched, customized, viral social network. Start simple and buy features a la carte”

introNetworks
“introNetworks, Inc. offers an award-winning platform that facilitates the creation and management of these private business communities with world-class, easy-to-use tools that visually display relevant matches between people, companies, products – virtually anything. The result? You build loyalty, learn about your audience, and drive revenue.”

Vitrue
“Our Advanced Platform enables companies of all sizes, including some of the world’s most visible brands, to leverage social media to enhance their brand value and long-term business success. Whether it’s through the development of promotional web campaigns and communities, or by integrating into the fabric of a company’s business, we use our expertise and advanced technology to help brands connect with consumers on a deep, interactive level. More about our Solutions..”

Wild Apricot
“Build a professional looking website without having to call up expensive nd busy web experts. Wild Apricot’s software provides professionally designed templates and tools to easily adapt the look and feel”

Acquia
“We are a new software company that will provide value-added software products and services for the Drupal social publishing system. With over two million downloads since inception, Drupal is used by web developers worldwide to build compelling websites. Diverse organizations use Drupal as their core social publishing system, including media companies, non-profit organizations, publishers, and many others. Acquia plans to accelerate and extend market adoption of Drupal by advancing the core technology and offering value-added software products and network services that dramatically speed deployment and reduce risk.”

CoreSpeed
“CoreSpeed provides cohesive private-label online marketing, ecommerce, and social media platforms for your enterprise with our flagship Web 2.0 product, CorePlatform”

Flux
“We’ve developed an expansive toolset and powerful platform to give you a huge range of features: content sharing, member profiles, customized page layouts, photo and video uploads, easy technical integration, and so much more.”

Higher Logic
“Higher Logic provides hosted Social Networking software for non-profits and member based organizations. Our products integrate with your membership management system to give your members new and exciting ways to communicate with one another.”

TamTamy
Enterprise Social Network

List of 50 OpenSource Social Network Platforms
Go nuts! Here’s many more, some are already on this list.