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Losing their cool: the downside of expanding hot social networking sites

Knowledge @ Wharton: Wharton Publication Excerpts

Issue date: 10/9/06 Section: Insider
Facebook, a social networking site known as an online meeting place for college and high school students, is opening its doors to more people in an effort to grow beyond its current nine million registered users. The problem: The move could be risky if it blurs the company's focus and dilutes its brand.

Social networking sites often connect people within certain demographic groups -- such as students, business people, independent music fans or twenty-something urbanites -- using tools such as chat, uploaded pictures from users and online diaries.

For Facebook, the move to expand comes amid backlash over two features the site added September 5, 2006, dubbed "News Feed" and "Mini-Feed," which allowed users to track information updates of others in their social circles. When a person's profile changed, updates would be broadcast to people who subscribed to the feed. These updates could include such personal information as a subscriber's decision to break off a romantic relationship or start a new one. Although the same information was available for viewing in a person's profile, some users objected to the lack of control over the distribution of their personal information. On September 8, Facebook issued a mea culpa in response to these privacy concerns, and now Facebook's new features have more finely tuned privacy controls. As CEO Mark Zuckerberg put it in Facebook's corporate blog: "We really messed this one up."

Now, according to reports from BusinessWeek and Forbes, Facebook is opening its doors beyond students and those affiliated with certain companies, to people associated within geographies. Much of Facebook's early success was due to the close affiliation of its members' networks. For instance, a person on Facebook who attends the University of Arizona would only have his profile viewed by others at the school or other people he or she has identified as a "friend." "We made the site so that all of our members are a part of smaller networks like schools, companies or regions, so you can only see the profiles of people who are in your networks and are your friends," says Zuckerberg.
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