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What is being a startup really about?
In the last line it says "Iluri says the company plans to create a Facebook application to expand their reach."
I couldn't help but shake my head.
otherwise, as a stand-alone business, with the current figures, it doesnt make sense
The PROMISE and POTENTIAL of Facebook as an app platform and leveraging the social graph remains. However, the bar was set too low. Any user goodwill that us independents could ever leverage has been totally stripmined and laid to waste by the hundreds and thousands of useless spam applications.
Unfortunately "app fatigue" has caused legitimately useful applications to fall by the wayside as the baby gets thrown out with the bathwater. This is really a microcosm of "Web 2.0" in general as so many new sites were created at such a rapid pace, people became cynical pretty quickly. Whereas that process took a couple of years, the hyperactivity of Facebook accelerated the hype->hangover phase to a few months.
As with all new markets we'll go from the hangover->settling phase where the spam gets eliminated, the good gets better, and people are willing to try again. At that point the companies that use Facebook in an intelligent way will gain traction.
To reiterate a little bit about the overall point. You can point to ten thousand failed Facebook apps and say the whole thing stinks. I can point you to cases such as iLike and StyleFeeder which leveraged Facebook into powerful brands and websites. Same with the web in general. I can point you to fifty thousand failed websites and say Web20 doesn't work. And you'll just point me to successful sites like YouTube, Flickr and ProductWiki :)
I think there are different ways to evaluate success in Facebook beyond the idea that something needs to have runaway numbers. Moreover, what are the expectations of the app creators? I'm sure they scale from "what happens if" to "take over the world," but assuming that everyone just wants quantity and that only quantity or only sales and donations can spell success oversimplifies.
Take the charity apps, for example. Why, exactly, does this ratio of people showing support by installing the app to people actually making contributions spell out failure? It doesn't compare the ratio of exposure to donation is in other fundraising channels, like tv advertising or sidewalk canvassing. It also doesn't address that every time a profile with a charity app installed is viewed would otherwise count as an ad-impression for that charity. How does that not have value, or to turn it around, can we not think of other valuable outcomes for the app-maker than donations? If those charities were asked, I wonder if they'd see those numbers as failures. Maybe, but maybe they're happy with the free advertising.
This is a new game for almost everyone playing. These apps are largely experimental and first-cuts by different people and organizations trying something new, and just short-sighted to take the "I told you so" position so quickly. I think people get misled into thinking that the sum total of Facebook is the potential oyster of any single app that isn't made by Facebook. It's not. Facebook works very well with the personal and the local, and as such there are many internal boundaries to jump, and proving relevancy to each of those clusters just isn't going to happen with most subject matter. Facebook is a large, uneven and uncertain territory for a type of application development that is, for all its problems and benefits, becoming prevalent. Large service providers like Amazon, Facebook, Microsoft, and of course Google, are becoming platforms that take over much of the redundant infrastructure work, allowing smaller apps with high focus to be made and maintained by third parties. It marks part of a significant shift in computing and as such people are going to try lots of little things that won't work. This moment of Facebook apps is like chapter 2 of many, not the end of the story, by far.
Sam Hyatt
Founder
BluCast
214.264.2809
If it fails... ok not so much lost.
If it works it's gonna be huge.
Me second point is most big companies (and even startups) have no clue about how to make an app viral, they just make fancy app with (sometimes) nice ui and features. Facebook is new and complex market and without proper knowledge you won't go that far.
By the way we can build your facebook app ;)
Specifically, you mentioned the social graph. Once Facebook cleans up the application directory (which it seems like they're going to with the next generation of tabbed user profiles), we're going to see far fewer popular applications. I imagine this will lead to a few applications becoming as indispensable as say, Photos or Video. Then we'll see a golden application and hopefully something other than "How many vampires kissed my top friends".
I think the Facebook platform craze is dwindling now, and the reason probably has to do with the enormous clutter and annoyance these apps were causing. The upcoming Facebook profile page tabs are perhaps a bit too late.
And I'm surpised the TD Canada Trust app has only 6 active users despite being demo-ed at the last FacebookCamp Toronto in front of a few hundred people..
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James
alberta drug rehab