The Business of Facebook Applications - Reid Hoffman

Reid Hoffman, Chairman and President, Products at LinkedIn, talks in this business and marketing keynote, presented at Graphing Social Patterns 2007, about the Business of Facebook Applications.



He addresses five themes:

Social Networks and Platforms
What makes social networks, platforms? What sets Web 2.0 social networks apart? Is Social Networking a feature, an application, or a platform? He talks about Friendster being referred to as Match.com but with a friends list added on top of it and for that reason it was considered a feature. He credits MySpace allowing the ability to "hack in 'widgets'" as the start of social network as a platform. He clarifies that according to his understanding it wasn't a 'deliberate design decision' by MySpace but rather an 'artifact of their platform' that didn't turn off or filter javascripts. This by accident lead to a 'robust ecosystem' through which users were including rich media etc. Ning then created a 'different conception of social networking as a platform,' allowing users to build any kind of social network. Facebook then 'launched the first platform on a large social graph.' Facebook applications could then rely upon the social graph in order to build.

He believes that social networks are platforms and has invested in several different social networks.

What makes a social network interesting? What creates a robust and interesting environment?
"The key thing is that a social network takes patterns of important relationships we have in real life and then pus them on the web in ways that empowers important applications." People still care more about their offline world so if you can "import the relationships that matter to people here and make them available to [either] generate thin or light app yourselves which most of these networks do or provide them as a platform for other people, it actually enables applications that can really change people's lives"

The key elements 'from a sociological perspective' of Facebook's platforms are "extending functions of profiles, communications and messaging and the newsfeed." He goes on to say that Facebook's newsfeed is an example of many to many messaging. Then, you can 'integrate general web applications with data, relationships and communications'

He then goes on to contrast and compare several social networks including Facebook, MySpace and Ning. Facebook offered developers a massive social graph that allows them to acquire customers, leverage key relationships and leverage existing communication scheme. With Ning, although you can build your own social network feature wise, you are also left to build your own user base. For developers the key thing was that if they built something Facebook could get them in front of millions of potential customers. An example of leveraging existing communication scheme is that most Facebook apps have spread through messaging or emails or through newsfeed.

The remaining four themes of the video:

- Social Networks and Professional Networks
- One graph to rule them all?
- Facebook Platform: some of the opportunities enabled
- What does the social platform mean for the evolution of the web?

Also see:
- Social networking is a feature, not a destination