FreEllo?
Over the past weeks, Ello has emerged out of thin air as a mysterious and exclusive invite-only social networking site. What makes Ello different from the hundreds of other social media networks that have stood up against Facebook? It markets itself on its value proposition that it “does not contain any ads, and promises members it won’t sell any personal information” (Evens 2014). Whether or not such an unseen, yet humble business strategy will work has yet to be determined.
More importantly, shareholders of the new surging network are questioning whether or not Ello’s freemium business model will take traction with its users. Where Facebook’s success can be attributed to 85% of it’s revenue coming from advertising (Bohn 2012), Ello lacks the same financial stability in that their revenues rely on user donations and premium purchasing.
This revenue stream coupled with it’s exclusive invite-only structure stunts Elllo’s ability to grow quickly and exponentially which is what I believe is needed to take a bite out of Facebook’s and Twitter’s market share. Although its unique niche and PoD seem to be intriguing users today, it is unclear if Ello will continue this high road of interest and publicity to eventually stand up beside the almighty Facebook and Twitter giants.
Evans, Pete. “Ello social network making waves as Facebook & Twitter alternative”. CBC News, Sep 25. 2014. Web. Oct 1, 2014.
Bohn, Dieter. “How Facebook makes money”. The Verge, Feb 1. 2012. Web. Oct 1, 2014.