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Saturday, August 2, 2003

social networking sites

there’s an explosion of social networking sites recently (friendster, tribe.net, linkedin and many more, i’m sure), and it seems to me that these are all very fragile concepts.

the value of these things depends a lot on the number of people participating, but it’s going to be very easy to alienate or otherwise drive away chunks of the network. of course, the company can “screw up” – a major private-information-exposure scandal would certainly do it – but there are more subtle things that can break these networks….

people participate in “general purpose” networks like these, but i have to assume that they generally have a fairly specific purpose. if the network (or the software supporting the network) can’t deliver on that purpose, i’m gone. so that’s a lack-of-value problem. how do you create (and more importantly, maintain) specific value in a general network? is more open better?

the other side is “driving people away” – if i feel like i’m being “harassed” or “bothered” by people in the network, that’s just as likely to drive me away. how do you keep the “signal to noise” ratio tolerable in an open network?

i don’t know how it will shake out, but i think these companies and sites will have to follow where their networks lead – if they try to force them to fit a pre-defined model, they risk alienating large chunks of the network they’ve managed to build.

posted by roj at 10:30 am  

Friday, August 1, 2003

increasing transaction costs

as social capital declines, transaction costs increase

sounds about right to me. opens up the trust network can of worms, but, if you don’t trust the person with whom you’re transacting business, then someone’s gotta pay for that homework (or due dilligence, depending on your business linguistics framework).

posted by roj at 6:25 pm  

Wednesday, July 30, 2003

Doing my bit for the economy

within minutes of launch, the meta-roj-blog has already resulted in an $8/month boost to the tech economy. sometimes, i amaze myself.

posted by roj at 4:26 pm  
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