Saturday, November 28, 2009

Quality vs. Quantity of connections in online social networks

In the era of web 2.0, everybody is online and most people belong to some kind of online social network. Different networks for different purposes exist, e.g. XING or LinkedIn for business purposes, facebook for connecting with friends all over the world, etc. All these networks can be accessed by everyone and anyone without distinction. There is also no hierarchy to “protect” people who are interesting for most other people in the network (f.e. a CEO or HR person of a DAX listed company). These people are likely to retreat from these “mass online social networks” or not even enter as they do not want to be bothered by any Jon Doe who happens to be part of the network. Thus the development of exclusive online networks where people with a similar level of success, or a similar level of wealth, or a similar interest in a certain subject engage, is a natural one.
In the article of Stuart Hoge on Brandchannel.com one can also read that it will be important for the exclusive networks to watch carefully whom they are accepting into their network to maintain the exclusivity promoted.
Exclusive social networks have always existed. They give their members a feel of being closer to the other members and building stronger links between each other due to having the same experience, background or devotion. In my opinion there will be further development and growth of the exclusive type of networks over all, but if the single exclusive network sticks to the finding of that article, growth has a natural limit. The mass online social networks will also always exist since there are enough people who do not want to be “exclusive” but rather have contact with a lot of people. For the operators of networks it will be important to determine whether they want to be exclusive or inclusive to be successful in the future.
Articles on this issue:

http://www.brandchannel.com/papers_review.asp?sp_id=1296

http://www.businessweek.com/innovate/content/nov2007/id20071114_257766.htm

1 comment:

Christopher Tunnard said...

Yes, but the real business questions here are where is this going, and can 'exclusive' sites charge a premium for access and/or for what they sell? You could have used some examples of 'exclusive' vs 'non-exclusive' SNs, or commented on the ones in the BW article. Look at some of the other posts about branding on the Web, for example

Perhaps some of this will come out in the debate.