Saturday, May 24, 2008

Noise between you and your Family and Friends

Social networking has become a remarkable Internet phenomenon. With a rapid recent rise of giants such facebook and MySpace, there are hundreds other that are trying to emulate or build on these successes. Soon, you will see that we are not one of them!

Besides growing faster and greater than their predecessors, these sites still seek a business model that is sustainable. One could draw many parallels between these new sites and those that rose earlier including eCircles, sixdegrees, myfamily, and friendster. In our opinion, the key weakness in all of these sites is a poor "revenue to noise ratio". We have created this term to evaluate our business model. "Revenue to noise ratio" simply means the amount of revenue that you are able to generate for the amount noise that you throw at a user.

In the old days you had an opportunity to put only a couple of displays ads on the page of a polite site. As the CPM for banner ads plummeted, these sites folded rather quickly. There was a time when graceful shutdown of a dot com was natural end to a venture! Even though the noise on these sites was modest, the revenue was minimal. Thus "revenue to noise ratio" was low.

In contemporary days of web 2.0 (higher?), we made good headway with noise by reducing the ads to simpler non intrusive text scattered anywhere and everywhere. We also gained by getting much better and matching meaningful ads with context. Many times ads were as useful as the content on the page! As everyone gravitated towards a model that was working, the model is now starting to show signs of weakness. As the clickthrough rates for ads plummet and cost-per-click goes down, the noise created for every dollar of revenue generated has skyrocketed! Many times, for a click that generates 10 cents in revenue, there are thousands of messages that are displayed! Talk about a poor "revenue to noise ratio"!

So, how does all of this relate to Quite simply, reducing noise in your interaction with your friends and family is our primary objective. Over the coming weeks and months, you will learn that it is possible to stay in touch with family and friends quietly and privately and safely! You will see that we can quite effectively offer these services to you where there is very little, if any, noise to generate revenue from your use of our sites.

Stay tuned, help us tune up the spaces in such that they really work for you!

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