The year 2006 will be remembered, among other things, for being a time when 'social networking' fuelled a second web mania.
But if last year saw another honeymoon period for internet start-ups, 2007 could bear witness to second wave of e-business casualties if too many jump in gung ho again. For example, Ecademy, one of the world’s first online social networks, predicts some nasty libel cases if sites don’t set rules and values from the outset.
Last year saw an unprecedented hunger for social networking websites, with YouTube being snapped up for £1bn, and MySpace forging links with Google
Last year saw an unprecedented hunger for social networking websites, with YouTube being snapped up for £1bn, and MySpace forging links with Google. This trend looks likely to grow in 2007, although success could be short-lived for businesses that think it's as simple as mimicking the social network phenomenon, Ecademy.com warns.
Ecademy.com, mooted as the MySpace for business people and entrepreneurs, was set up nine years ago, braved the dot.com crash of 2000, and now attracts more than 6,000 new members a month to its social network.
One of Ecademy's founders, Penny Power, believes the key to building a successful social network is building emotional connections and a real sense of community. A website that just wows you with flashy tools will lose its appeal fast.
"Tools are just fads; communities and friendships evolve. Social networks have to become communities, and in order to do that they require a culture and values," Power says. "What people want is intimacy and friendship, not just contacts. Being a name on a contact list is no different from being a business card in a rolodex.
"Knowing who you can learn from is what matters and what social networks should be about." Penny Power’s comments are backed up by reports in newspapers such as The Wall Street Journal that urge companies to exploit the web to make customers feel involved.
Ecademy.com even extends this policy to its banner advertising. For example, members of Zubka, a recruitment agency, can earn commission from placing friends in jobs. Another company, MWB Business Exchange, offers discounted office space.
This reflects the growing importance to brands of social networks and their increasing awareness that they can’t purely use them as advertising space, but must engage with the community.
Predictions for the future
Founders Penny and Thomas Power have put together the following predictions for the social networking boom over the next 12 months:
Jumping in: Tool-based sites such as LinkedIN and Xing will move towards building online communities with the introduction of facilities such as blogging.
