Advice to Facebook: Time to Launch Operation Baby Come Back

Google started field testing Google+ last Tuesday. This has been very widely anticipated. Rumors have swirled for months about Google’s social strategy — what would it be, and when would it happen?

Conventional wisdom has held for some time that Google is too geeky to get social right and that it is game over. Many pundits say Facebook has already won. Facebook has hired a bunch of former Google stars and has been considered the hottest place to work in Silicon Valley for some time. It’s hard to imagine that changing as the company marches towards a billion users and a very high profile IPO.

But Google+ is an amazing product. It is lightning fast, beautifully designed, and feature rich. I have spent dozens of hours on it during the past week and am convinced it will be a massive success. In my view it combines some of the best use cases of Twitter, Facebook and Skype all in one sweet user experience.

I’ve watched in near real-time as dozens of people have joined Google+ and made their first post, sometimes just typing “test” or “hello world.” Soon they start asking questions about how this thing is supposed to work, and they get immediate responses from other users. They start seeing the similarities and differences between Google+, Twitter and Facebook. After some experimenting, they typically end up having a very positive response to Google+.

Access to Google+ is still very limited. But a lot of people have joined already and a lot more are clamoring to join.

Google Plus: 1.7 million users so far?

Over the weekend I conducted an extensive analysis comparing surname and population data from the US Census Bureau to the Google Plus user base profiles. My conclusion was that as of July 4th there were 511,000 users in the U.S. and 1.2 million outside of the U.S. for a total of 1.7 million users.

The U.S. estimate is extremely accurate because of the census data, but since I don’t have surname popularity data for other countries the non-U.S. estimate could be significantly off. Still, even if it is off, there is no question that Google+ is seeing an extremely rapid adoption rate.

Like most new social products, the early adopters have arrived in force: Robert Scoble has 17,000 followers. Other influencers like Matt Cutts, Kevin Rose, Jeff Jarvis, Michael Arrington, Pete Cashmore, Louis Gray, Danny Sullivan, and Tim O’Reilly have thousands of followers already and show up on the Top 100 users list compiled by socialstatistics.com.

Technology execs like Michael Dell are creating buzz in the Google+ community by participating in video Hangouts. Mark Cuban has posted some photos of his NBA trophy. (Go Mavs!) Newt Gingrich became the first presidential candidate to sign up. And Ashton Kutcher has 2,800 followers so far, with a few more celebrities putting a toe in the water.

Each new high profile arrival gives another existing fan base a compelling reason to try out Google+.

How Fast Will Google+ Grow Virally?

As a company, Google has more online users than any company in the world, with more than one billion people served in May. Mark Zuckerberg announced today that Facebook has 750 million active users. So this will be a historic battle between the two biggest online players in the U.S. This won’t be Microsoft crushing Netscape, or Facebook eliminating MySpace. This will be a real fight. Both contenders are heavyweights. And it will probably go fifteen rounds.

I’ve been involved in social products since 1998 when MyFamily.com launched and attracted 1 million users in 140 days, making us the fastest growing community site up to that time. We passed Talk City to break the record. (MyFamily.com played a fascinating role in the early success of Ancestry.com.) Four years ago, a new company that I founded launched the We’re Related app on Facebook which got 1 million users in 29 days and went on to reach 80 million total users – all from family members inviting family members. I think I understand family virality. But that is just the tip of the iceberg for Google+.

Family

According to a fresh survey, 87% of Google+ users say they will invite relatives to join Google+ when they are allowed to. And on average they say they will invite about 12 relatives. By itself, this would help Google+ grow from 1.7 million users (my estimate on Monday) to several times bigger.

Friends

99% of Google+ users say they will invite friends to join the site – and on average, 179 of them! That kind of virality will be impressive.

Co-Workers

And 83% say they will use Google+ at work, and on average they will invite nearly 100 people from their company to the site. Yammer, Chatter by Salesforce, and other business applications have conditioned millions of businesses to simple asynchronous internal messaging. Some people think Google+ is a huge threat to these services.

Google’s Other Channels

But Google will not be limited to viral growth in the typical social fashion. Remember, Google already has a billion users of its other properties. It is the largest search engine in the world. Gmail is a major email service. Blogger (soon to be rebranded Google Blogs) is the leading blogging platform. Picassa (soon to be renamed Google Photos) is an incredible photo organizing and sharing tool. There are so many other properties like Google News and Google Reader that could also be part of the equation.

Google will likely get hundreds of millions of users on Google+ by finding ways to invite them to sign up while they are searching the web or using email. Or maybe while they are using the Chrome browser, which now has 20% market share, or Google Android, which is the leading smartphone platform in the world. I read yesterday that 500,000 Android phones are activated every day.

Being a part of Google’s marketing team would be a marketer’s dream. This is going to be the most successful product launch in the history of the world.

Facebook’s Response

Facebook’s first public response to Google+ came last Thursday when Mark Zuckerberg said that Facebook would make an awesome product announcement today in Palo Alto. During the press conference today he announced support for group chatting as well as a significant integration with Skype, enabling 750 million Facebook users to have person to person video chats without leaving Facebook.

Many observers felt the timing was unfortunate for Facebook and that while these features will be great for Facebook users they were available in places like gmail and MySpace much earlier. For the first time it appears Facebook is playing catch-up.

If people love Google+ so much, will Facebook have to enable lists as filters, beef up groups and maybe even adopt the circle approach? Will they get in a race with Google to match feature for feature? Will Facebook start paying careful attention to what customers want, and iterate based on customer feedback as the Google+ team is doing so well. Tom Anderson, founder of MySpace, posted some nice compliments on Google+ about how involved the Google+ team is with its customers. They’ve already made a number of significant improvements to Google+ in the first week of field testing.

The possibilities of a feature war are exciting. Some of us geeks are having a hard time sleeping as we watch this play out.

The big question is will Facebook be able to maintain its lead through the IPO? What will happen to its possible $100 billion market cap? Google has been adding $1-3 billion per day to its market cap since the field test began. Is that coming out of Facebook’s valuation? Or will both continue to grow in users and value?

What Can Facebook Do?

As I look back over the past few years and the rise and fall of social sites like Friendster, MySpace, hi5, and Bebo, and as I consider why Facebook gained so many more users than all other sites combined, I think back to one of the biggest days of my life: when I met Mark Zuckerberg in person on May 25, 2007.

Background on Facebook Platform

Four years ago I attended the f8 event in San Francisco where Mark Zuckerberg announced Facebook Platform. It was an impressive moment in web history. Here’s what I wrote later that night:

I sat on the third row and drank deeply of the kool-aid as Mark Zuckerberg, who turned 23 years old just 11 days ago, presented what may be the best business opportunity for internet entrepreneurs in the past ten years.

A huge new opportunity was presented to the few hundred people in the room, including 65 companies that have spent the last few weeks developing applications for the launch of Facebook Platform.

Facebook is inviting anyone to develop applications for their users on top of what Mark calls their “social graph”–the core of their service which basically keeps track of real people and their real connections to each other.

I went on to predict in my most popular blog post ever that “Facebook will become the #1 social network worldwide and the first to get 1 billion users…”

(Read the full post here: http://www.paulallen.net/prediction-facebook-will-be-the-largest-social-network-in-the-world/)

Facebook already had a lot of momentum and user growth back in May 2007. They had 24 million active users at the time and were growing fast. I had been teaching internet marketing courses at Brigham Young University and knew from first-hand experience as well as from marketing studies that Facebook was the #1 most important web site for college-aged students.

But the primary reason that I believed that night that Facebook could reach a billion users was their new Platform. I knew that Platform would attract thousands of talented developers. It would unleash their creativity and soon, all kinds of valuable, useful and fun widgets would be a click away for Facebook users. But Facebook would benefit too: each application had the potential to increase Facebook’s virality. Cool apps could be instantly shared with other Facebook users. But each new app could also enable users to reach out to friends and family and co-workers who were not on Facebook yet, and invite them to join.

That evening, Zuckerberg said his small team couldn’t possibly create everything that online audiences would want, and they didn’t want to. They wanted their Developer community to do it for them. They just wanted to own and manage the social graph. He even said he would even allow developers to build photo and video applications to compete with Facebook’s own simple applications. He talked about a level playing field. Because that’s what Platform companies do.

Getting App Developers on Board

Just minutes after Zuckerberg finished making his announcement, I was on the phone with my lead engineer and product manager excitedly explaining how our company strategy would immediately shift from building a dedicated social web site for families (a la MyFamily.com) to building apps for families on Facebook. We bet our company on Facebook Platform.

During the next 2 ½ years we became a leading Facebook app developer. We built an application that helped you find all your relatives on Facebook, build a family tree, and share content privately just with your relatives. We attracted 80 million users and were growing by 1 million per week at our peak. Our internal surveys showed that forty percent of our users gave full or partial credit to our app for their decision to join Facebook. Facebook was helping us, and we were helping Facebook.

Our app was family history related so it attracted older users. As our growth skyrocketed, reports appeared showing that Facebook’s fastest growing demographic was women over 55. Our app helped with the mainstreaming of Facebook. And so did many other apps.

Companies like RockYou, Slide, iLike and Living Social focused enormous energy on building apps for Facebook. They were rewarded with tens of millions of users and huge valuations and funding rounds.

Facebook Platform was working its magic.

The Spirit of Wikinomics

In that famous May 2007 post I shared a couple of quotes from chapter 7 of Wikinomics that applied perfectly to Facebook’s Platform and to other platforms as well. (I highly recommend this book.)

“The winners in this evolution will be companies that can create the *most comprehensive incentive frameworks* to adequately reward all stakeholders.” (p. 207)

“Winning in a world of cocreation and combinatorial innovation is all about building a *loyal base of innovators* that make your ecosystem stronger.” (p. 210)

Initially Facebook had the best incentive framework I had ever seen. They gave developers the gift of free virality and they initially promised we could keep 100% of the revenue generated by our apps.

We not only bet our company on Facebook but we also became serious evangelists for the Platform. We held developer garages for top entrepreneurs and developers in Utah to try to recruit more developers to the Platform. In a healthy ecosystem, everyone benefits from the network effect. A rising tide floats all boats. Dozens of Utah’s best and brightest attended our events where we taught them about building apps in Facebook markup language, FBML, and hosting apps in the Amazon cloud for ultimate scalability. Our success was contagious.

At Stanford, my friend BJ Fogg taught a course in the fall of 2007 with Dave McClure about how to build engaging and viral Facebook apps. Students built apps that attracted more than 10 million installs during the semester. Funds started springing up that were going to back the companies who were building on this platform. It was an incredible period of growth for Facebook and its ecosystem.

The main point I made that night was this:

[Facebook’s] growth will be dramatically accelerated by the Platform announcement. If Facebook is adding 100,000 new users per day with its own few simple applications (like its photo sharing, a very simple service that has given Facebook twice as many photos as all other photo sharing sites combined), what will happen when thousands or tens of thousands of developers start building apps in Facebook and marketing them to more users?

Facebook will reach 50 million, then 100 million, then 200 million users, and beyond.

Rather than continue to try to develop features within its own proprietary, closed network, basically keeping all of its users to itself (and kicking out widgets they don’t like, like MySpace does), Facebook intuitively gets the concepts that are so brilliantly discussed in Wikinomics (which are so non-intuitive to old school business types), and has chosen to open up its network for all to participate in. Because they embrace the winning philosophy, they will win.

Application developers can now have access to core Facebook features, such as user profiles and user connections, and even publishing to the News Feed, all with the control and permission of Facebook users. So if a Facebook user chooses your app, it will show up on their profile for all their friends to see, and they can enable that app with a single click, and so your application can spread virally to the 24 million other users.

Platform Helped Facebook Surge Past MySpace

At the time, perhaps the best analysis about how critical this developer platform (or “widget network”) would be to Facebook’s success came from the famed entrepreneur and brilliant investor Josh Kopelman. He wrote,

…Myspace’s lack of a clear “widget roadmap” created a big opportunity for their #1 competitor, Facebook.

Just last week, Facebook took advantage of that opportunity in  a huge way.  Specifically,Facebook announced their new development platform, F8.  I won’t spend a lot of time describing their announcement (I’ll leave that to others), but I agree with Paul Allen’s summary of the three key points:

  • Applications can be deeply integrated with Facebook
  • Distribution of the applications will occur through the network, and
  • The business opportunity Facebook is providing will give 100% of advertising revenue (for third party applications) and 100% of transaction revenue to the application developers.

By providing a clear roadmap – and business opportunity – for the widget makers, Facebook has just increased its virtual R&D budget by over $250 million dollars.  By welcoming third-party innovation, Facebook will reap the benefit of hundreds of millions of dollars of venture investment – and the Facebook user will have a much richer experience.  I’d wager that every widget maker who has previously relied on Myspace for traffic is hard at work this holiday weekend on migrating their application to support the Facebook API.

Think about it.  If you ran a venture-backed company and had to decide whether you wanted to focus your effort on:  (a) a property that welcomed you in and let you keep 100% of the revenue you generate or (b) a company with a vague policy that doesn’t let you generate any revenue, which would you choose?  I don’t think it’s even a decision.  It’s an IQ test.

Facebook has recognized (and embraced) something that Myspace has not – that there is more value in owning a web platform then a web property….

Major Growth

Today, Facebook is about 30 times larger than it was 4 years ago. It has been translated in 70 languages, mostly by its users. According to Quantcast, 76% of the visitors to Facebook are “addicts.” Zynga, the leading game company on Facebook Platform is going public and may be worth $20 billion. Facebook itself is preparing for an IPO early next year and may achieve a $100 billion market cap.

But besides games, what serious applications are being built for Facebook today? Why did Facebook go from promoting its Platform to hundreds of thousands of developers, to shifting its emphasis to Facebook Connect? Why did it stop letting its users add content and links from apps to their personal profile pages, so that their friends could discover what apps they were using and promoting? Why did it stop (for a while) helping apps communicate with their users?

Facebook seemed determined to make all of its app developers, especially games, pay for Facebook ads to get users.

Where have all the app developers gone?

Abandoning the Winning Philosophy

Something changed at Facebook in 2009. The spirit of Wikinomics was lost. I don’t know all the reasons why, but the Facebook Platform opportunity that promised free virality and 100% of the revenue from canvas page views turned into a nightmare for many app developers as viral touch points and communication channels were deprecated from mid 2009 to late 2010.

There were rumors that Zynga might be making more money in 2009 than Facebook, and that must have rubbed everyone at Facebook the wrong way. Facebook was spending a huge amount of money to support applications and probably wasn’t getting a fair piece of their success – not like Apple, which took 30% of all the revenue from its app sales. Something had to change.

I had warned in 2007 that a gaming company might actually make more money building on Facebook than Facebook itself would make:

It is even possible that some future Facebook app developers could end up with a greater market cap than Facebook–if they permanently maintain the 100% of revenue going to the partner model. For example, a MMORP game built into Facebook might someday have 10 million users paying $10 per month, or $1 billion in revenue, when Facebook might at that point have $500 million in advertising revenue. (Reportedly it will make $150 million this year.)

Okay, not likely, but maybe possible.

The cool thing is that the marketing costs for these application developers will be basically nothing. All viral. All courtesy of Facebook’s users.

If Facebook’s strategy team understood how to create the winning platform, then rather than eliminating the benefits to becoming a Facebook app developer, they would have tried to make it possible for dozens of companies in non-gaming verticals to also become massive successes on the Facebook Platform. Not just Zynga, Playfish and Playdom. It wouldn’t be stuck as just a social gaming platform. After all, with more users in more verticals, Facebook would ultimately benefit the most.

The core asset Facebook wants to own, extend, and leverage, is the social graph–who is connected to whom.

Facebook Platform Roadmap

In late 2009 Facebook announced their Platform Roadmap at another developer event. Publicly, they tried to spin the changes as being positive to users and developers alike. Leading developers knew this Roadmap would be absolutely devastating. Privately everyone was scared and upset. Publicly, no one wanted to say anything to Facebook or about Facebook that might cause them to be singled out and punished for their lack of loyalty.

The Roadmap was a series of design and API and policy changes that largely took away the opportunity for app developers. Over the next year and a half, these changes decimated the developer community and many startups that had sprung up around Facebook Platform.

There were legitimate reasons for some of the changes, including reducing the spamminess of many apps and reducing the huge costs that Facebook was incurring for hosting content and delivering billions of page views and user notifications at no charge for the apps. Some apps were harming the Facebook user experience. But there were definitely other solutions that could have been pursued.

Overall I believe the main impetus for the Platform changes was this: Facebook had reached a tipping point. It had achieved critical mass and no longer needed apps to “accelerate its growth.” By eliminating the gift of free virality to its app developers, by taking away notifications and eliminating the presence of apps on personal profile pages, developers (especially Zynga and the other game companies who were generating huge revenue) would have to buy Facebook ads to achieve growth. Facebook also knew they could easily build some of the most popular features of leading apps into its own user experience, which they did.

The Ecosystem Weakens

As the Facebook Platform opportunity disappeared, so did the VC funds and the angel investors who had been so energized to fund the next big thing on Facebook.

Hundreds of early entrepreneurs and developers had been building apps and evangelizing the Platform. But all that energy dissipated and a lot of dreams were shattered. I personally lost about 40 employees as a result of the Platform changes. Multiply that by hundreds or thousands of other companies and you’ll begin to understand the pain that was felt as the Roadmap was implemented.

My company (and admittedly, ours is an extreme example) went from 21 million active users of our We’re Related app at our peak in late 2009 to under 500,000 at the bottom in late 2010 — that’s a 98% drop in users. Many other apps experienced similar fates – apps that would have improved in quality and value over time.

Our own product roadmap was really cool. Our customers had answered hundreds of survey questions about what features and services they wanted us to build next for their family and extended family. We had more than 200 million responses.  We hired a dozen talented engineers, many from Move Networks, and we were excited to move forward. But then the opportunity disappeared. For the next 18 months, we just tried to stay alive.

Mark Zuckerberg came to Provo earlier this year. He was interviewed by Senator Orrin Hatch in front of a crowd of 20,000 or so college students. He got a standing ovation as he entered Jimmer’s house – the BYU Marriott Center. It was actually a very cool, very surreal experience to have the world’s second youngest billionaire (Facebook co-founder Dustin Moscovitz is 8 days younger than Mark) gracing the campus.

Mark spoke passionately about how every industry would be reinvented in the coming years. Everything would become social. Then he mentioned my company as an example of how developers are going to build all the great apps for every vertical market. He mentioned that we had a million users. I can’t explain the pain I felt when I heard that. It was a dagger directly to the heart. Once again I was sitting on the third row listening to Mark. This time, I didn’t make any phone calls after the interview. I sat quietly, trying to make the pain go away, trying to cool down.

Operation Developer Love

Last year Facebook launched Operation Developer Love, an attempt to be responsive to the needs of developers and to keep them posted on the implementation of the Facebook product roadmap. There have been a couple of platform changes that have helped the developers this year. But if Facebook wants to regain the trust and love of the developer community, it needs to do so much more.

Can Facebook Be A Legitimate Platform Again?

Because Facebook focused on getting a piece of the games economy on its Platform, they may have hurt their chances to be a Platform for substantive applications in business, education, health, finance,  government/law, travel, real estate, and so forth.

Third party developers who want to build serious and useful apps no longer get any real viral boost from Facebook. To get users, you need a large advertising budget. One speaker at a Facebook conference last week in San Francisco told game developers to plan on buying Facebook ads to get 90% of the users to their game. Once you have a hit on your hands, it makes it easier, as Zynga has shown, to get the next hit. But even Zynga is spending tens of millions on Facebook ads.

The “business opportunity” Kopelman referenced is largely gone. Web sites may use Facebook Connect to slightly improve their conversion rates and to generate some re-engagement loops with Facebook, but Connect hardly helps third party applications grow virally. Facebook has seriously restricted its viral effect for new apps, which was the #1 reason why great entrepreneurs and developers wanted to build there in the first place.

There is no question that Facebook’s team is brilliant. 750 million users is a phenomenal achievement. Facebook pioneered the stream, which is addictive; brilliantly crowd-sourced its translation into more than 100 languages; launched Facebook Connect which is used for easy login by millions of webs sites; and has become the world’s leading social gaming platform. And now they have Skype integration too.

But unless something is done to improve the native virality of the Platform, and to enable monetization of apps, Facebook will never be the best Platform choice for non-game app developers.

Google+ API

When Google+ launches its developer platform, Facebook will have two fights on its hands. A feature battle to keep users happy. And a new battle to attract developers and to make sure their ecosystem is strong. Recalling what Kopelman said, they still need a “widget roadmap” so that they don’t become the next MySpace.

Two days after Google+ launched its field test, CNET’s Rafe Needleman spoke with Google’s Vic Gudontra (Senior Vice President of Social) about Google’s plans for an API. Vic spent 15 years at Microsoft and was General Manager of Platform Evangelism there. Vic said,

“I’m a developer guy at the core. It is inconceivable I would build something without a platform.”

Which Platform Will Empower the Most Developers?

Facebook knows that every industry will be reinvented in the next few years. Everything is going to become social. Developers can leverage Facebook’s social graph to invent all kinds of new things. But will they? Will they ever trust Facebook again.

For developers, the romance is gone. Developers are energized about platforms like iPhone, iPad and Android. But not Facebook. For more than a year I’ve not spoken to a single entrepreneur who has made Facebook a significant part of their launch strategy, because of what Facebook did to its first generation of app developers.

New Facebook games launch every week, and there seems to be a new Turkish video sharing app on the top 20 fastest growing apps list too, plus a few other odds and ends.

But Facebook must create a strategy to empower developers in every industry vertical – not just gaming – to go viral and create value for Facebook’s 750 million users.

Remember, Google owns Android and already works with tons of developers. Add Google+ to that, and Google can provide a huge social and mobile opportunity for developers.

How can Facebook ultimately win, given those Google advantages?

Remember the Wikinomics advice:

“The winners in this evolution will be companies that can create the *most comprehensive incentive frameworks* to adequately reward all stakeholders.” (p. 207)

“Winning in a world of cocreation and combinatorial innovation is all about building a *loyal base of innovators* that make your ecosystem stronger.” (p. 210)

I’d like to see Facebook return to its roots, to its original promises to the developer community and to rekindle the excitement we all had about working with Facebook to change the world. I’ll even volunteer to help Facebook reach back out to its developer community, from the hundreds of people who attended the original f8, to the hundreds of thousands of developers who began to dream about building the next big thing on Facebook.

Facebook could announce a handful of changes that could re-energize its developer community and give Facebook users new and innovative things to look forward to – besides just the next Zynga game.

Here are a few suggestions:

  • Let consumers put apps back on their profile pages in a limited fashion. Customers want this – we know, because we forwarded thousands of email complaints to Facebook from our upset customers when this feature was disabled. This would be a huge shot in the arm for developers.
  • Make it easier through notifications for apps to communicate with their users. Requests 2.0 is a very weak substitute for the original notifications.
  • Enable app discovery. Where is the directory of top apps in every category. Make the directory easy to find. Use algorithms like Genius to help people discover apps they will like. Please, do something to help the developers.
  • Let developers use social ads – the most effective form of ads on Facebook – rather than restricting them to being used only by Facebook. Ad revenue could help Facebooks apps grow and disrupt software being sold on other platforms.

Google’s Army of Developers

Tonight in a very insightful blog post Startup Boy said that as Android’s more open platform is Google’s best weapon against Apple’s iOS, so too “an army of 100,000 developers is Google’s best chance against Facebook.”

Here’s more of his post:

Facebook developers face two major problems. Firstly, to attract them, Facebook concocted and gave the developers access to artificial virality channels. Then, to prevent spam, they had to take them back. But they did so capriciously and arbitrarily, with some (i.e., the offerwall providers) being punished, and some (check a certain game company’s S-1) being rewarded. Secondly, Facebook is still figuring out its own business model, so what’s allowed and what’s not changes on a regular basis – look at the graveyard of social ad companies and payments companies and the recent introduction and mandates on Facebook credits.

Google should tell developers – “here’s a simple set of rules that will never change. Here’s a simple API that we will always keep backward compatibility with. Here’s an incentive and a reward for creating an application that brings more users into G+. Here’s a simple and clear way for users to export their information and their social graph. Here’s the standard small cut that we take on everything.”

Right now, the only true open platforms for any startup are email and the web. Android is a close third. Facebook, Twitter, iOS, SMS, etc. while beautiful and elegant, forget at their peril that there was a time when AOL, Compuserve, WAP, and other walled gardens were beautiful and elegant too.

Can Facebook Get Developers Back?

For two years the Facebook Platform team’s main message was that the in-Facebook app opportunity was pretty much going away, and that Facebook Connect was the new company strategy.

But that may not be enough now. If Google+ is going to attract an army of developers, what can Facebook do now? Can Facebook acknowledge that it abandoned its f8 launch philosophy, reneged on its early promises and made a lot of decisions that hurt developers? Rather than try to justify those moves, can Facebook apologize somehow, make some simple new commitments, and then work harder than ever to serve not only users and advertisers, but developers too?

Maybe Facebook can do what Startup Boy is telling Google to do: introduce a “simple API,” create an “incentive and reward” for bringing new users in or bringing them back, and introduce a “set of rules that will never change?”

Operation Baby Come Back

It’s time for Facebook to take developers seriously. Operation Developer Love is not enough. It’s time to pull out the big guns. It’s time to launch Operation Baby Come Back.

Perhaps Facebook should get Jesse Eisenberg (he sings in the animated hit Rio) to put on his best MZ tee and record this classic song from the 70s. Or if Mark can sing, that would be better still. They could send the video clip to all Facebook developers past and present.

Baby come back, any kind of fool could see
There was something in everything about you
Baby come back, you can blame it all on me
I was wrong, and I just can’t live without you

Facebook is big enough to live without app developers for a period of time. But my main point is that whichever social network provides the best platform opportunity for developers will have a huge advantage in the long run. And I actually think it will be the deciding factor in the social network wars.

And make no mistake, the wars have begun. Tonight Google’s VP of Social posted that they were opening up invites for a bit so they could double the Google+ userbase. They are ready to handle that much load. Very soon after his message spread through the system the Google+ doors were closed again.

I suspect this means another 1.7 million people will join Google+ as they respond to the invites over the next couple of days. I’ll be updating my surname-based analysis and estimate tomorrow.

When Google+ reaches 100 million users in the next couple of months, the Facebook team will need its own army of 100,000 developers who are fully motivated by proper incentives and iron-clad promises to build cool things on top of Facebook’s API. In my view, it’s their best shot against Google.

Meanwhile, I’ll be checking my Facebook every day, watching for the video.

Zuck is learning Mandarin–are you?

I read this morning that Mark Zuckerberg spends an hour a day studying Mandarin. I’m very impressed.

What a great investment of his time!

I’ve been considering doing this for several years now. Imagine how fluency in this language and familiarity with the Chinese culture might impact Facebook’s value and reach in the coming years. It has the potential to help Facebook open some doors to government or business relationships that may be extremely important down the road. I think this is a brilliant move by Mark.

I got a university degree in Russian a million years ago, and studied Spanish for 3 years also, but my skills in both languages have really declined. Inspired by Google Translate for iPhone, which I use daily, and with access to such interesting and timely content as President Dmitry Medvedev’s video blog, I am trying to study Russian daily. My current plan is to get my Russian and Spanish groove back, and then find a way to learn Mandarin. I’m almost 20 years older than Zuck, so I’ll have a lot less time to get a return on investment from learning Mandarin, but I still really, really want to do this.

I just hope my entrepreneurial life settles down to the point where I’ll be able to make this investment of time. That basically means  after FamilyLink gets solidly profitable.

Being from Utah where many entrepreneurs served a church mission to a foreign country when they were young, learning another language and culture really well, I have seen how beneficial this has been in many careers. What is your experience as an entrepreneur? What languages do you know and how has that helped you succeed in your business?

“That was the coolest assignment I have ever done”

Alex Lawrence (CMO of FundingUniverse.com) teaches an internet marketing class at Weber State University. (Marketing 4200). It’s currently in its second semester. In addition to teaching himself, Alex brings guest lecturers in to address topics such as online analytics, social media, and search engine marketing. His guest lecturers include entrepreneurs and marketers like Cydni Tetro (Women Tech Council), Patrick Bennett (Showroom Logic), Jerry Ropelato (TopTenReviews), Chris Bennett (97th Floor) and Dave Bascom (SEO.com).

When I taught internet marketing at BYU, I used a similar approach, bringing in experts to share their real-world knowledge about internet marketing subjects. I’ll never forget some of the presentations. One that stands out occurred shortly after Hurricane Katrina hit. A “local entrepreneur wondered what he could do to help out all these victims. His wife encourage him to put his web design skills to work, so he did. In just a couple of marathon days, he built KatrinaHousing.org, which within a week had attracted listings for something like 114,000 available rooms in homes all across the country.” (See 2009 blog post on Citizen 20 percent time)

My assignment both semesters was to cover PPC, email marketing, and affiliate marketing in 3 hours. Of course, that is impossible. It would be easy to teach an entire 16-week course on each of those three topics. Last fall when I taught the class, I assigned a few chapters from Seth Godin’s classic book Permission Marketing, 21 pages about using Google Adwords, and then we focused class time on dividing into 10 teams of 3 students each, assigned each team a domain name, and gave out $100 visa debit cards so each team could run their own Google Adwords campaign.

Two weeks ago I tried to cover some key points about email marketing and affiliate marketing in class, including a demo of Commission Junction’s amazing tools, as well as Google pay-per-click marketing. But this semester I decided to have the students run their first Facebook ad campaign using the $100 visa debit cards we got from Zions Bank.

The 10-day class project is now completed. I am reading reports from the 19 students who ran their first targeted ad campaigns on Facebook. I have been extremely impressed with how creative the students were with their ad copy and use of images and how quickly they learned from their assignment. Each student team tested multiple ads, so they were all able to say “this worked better than that.” Many were surprised at what worked best.

Today one student emailed me his report. He also said, “that was the coolest assignment I have ever done.” More than half of the students have expressed something similar. There is nothing like hands-on learning.

We recently hired the top student in Alex’s marketing class from last fall, even though he has an hour commute every day from Farmington.  He proved himself in that single class project that he has the creative and analytical skills to be a major contributor at FamilyLink. We couldn’t be more excited to work with him.

What classes do you know of at universities or even at high schools where the best assignments are hands-on real-world assignments that really make a difference in the lives and careers of the students?

My favorite example is the experimental computer science course BJ Fogg and Dave McClure taught at Stanford in the fall of 2007 called “Create Engaging Web Applications Using Metrics and Learning on Facebook” (Course number CS 377W.)

BJ is a good friend, and if it wasn’t for him and my small investment in his startup company, I never would have attended the Facebook Platform launch back in May 2007.

During the semester 65 students created and launched 80+ Facebook apps, many of which went viral. Collectively these apps  got more than 10 million installs and made nearly $1 million for the students during the semester. At the semester end presentation, more than 500 people showed up to see what the students had learned that semester. (Click here to view the slide show prepared by Dave McClure and Rob Fan.)

Please share any hands-on educational experience that made a difference in your life or career.

Who will actually quit Facebook over privacy issues?

There is a lot of media coverage about the high-profile people who are quitting Facebook and some surveys claim that up to 60% of Facebook users may quit Facebook over the recent privacy issues.

I am very skeptical of surveys like this and so I decided to run my own survey on FamilyLink.com.

We have been the leading Facebook app for families for years and the #1 Facebook connect site for several months. Our audience consists mainly of Facebook users who also used the We’re Related application, so they tend to be family oriented, mostly female. I think the Sophos poll was skewed towards techie-types interested in security issues, so the 60% was very skewed.

I used identical wording as the Sophos poll question, and added one additional response, which is “I am not a Facebook user” since a small percentage of our users join FamilyLink.com without being a Facebook user.

Here are the results so far, from nearly 700 responses:

2% have already quit Facebook over privacy issue
8% say it is highly likely that they will
38% say “possibly”

[View complete survey results here]

We can cross tabulate this data by age, gender, county, and several other factors – so if you really want a full report on this, please email me: paul AT familylink.com

Regardless of the accuracy of polls like Sophos or our own, it is clear that Facebook has been paying attention to all the media coverage about the privacy issue, and has announced that tomorrow Facebook privacy will be “simplified.” (see MSNBC story)

This Week: Ancestry IPO, FamilyLink goes viral, Navigating Facebook Platform changes

This week is going to be amazing. Possibly, the most interesting week of my career. I’ll explain.

Ancestry.com is slated to go public on Wednesday. I always dreamed of being part of that IPO, but I’ve been out of the company (7 years) longer than I was in the company (6 years). But my excitement about watching a company I helped create trade on a public exchange is mounting. I cannot wait to see what happens when ACOM debuts on the NASDAQ this week.

I’m thinking about holding an IPO party at my house on Wednesday for the early Ancestry.com employees who are no longer with the company. It would be fun to reminisce a bit and see where everyone is now. If “public demand” for a party is high, I’m sure we’ll be able to pull it off on short notice. Between LinkedIn and Facebook, my blog and twitter, we should be able to get at least a dozen or two people to show up. If you’re interested already (and qualify as a “former Ancestry employee”), shoot me an email. (paul AT familylink.com) We’ll watch a couple of old company videos and hopefully some Tivo’d coverage of some of the business news about Ancestry from Wednesday.

This week is also exciting because FamilyLink.com is going viral. Our FamilyLink.com Quantcast chart shows that we’ve had more than 6 million unique visitors since we debuted last month and we are just getting started. We think our Flash-based family tree tool is the funnest online tree ever created, and it is getting tons of usage. We hope to be a top Facebook Connect site soon. In fact, Facebook’s Wiki shows FamilyLink as an example of how to create invites and requests using Facebook Connect. Facebook has been an incredible platform for our company to build on.

Even though Compete.com shows us as having more unique visitors than Ancestry.com, and even though we are classified by them as a genealogy site, we are actually a totally different creature. We are a family social site. Users of our Facebook applications (we have about 60MM users) can easily navigate to FamilyLink.com and enjoy an enhanced family experience there. We connect you to your living relatives. We help you share content and life experiences and memories with your immediate and extended family. Family trees are a fun part of our overall experience (because everyone loves to see how they fit into their family) but we are not currently a deep research site for ancestral records.

About 15% of our users consider themselves genealogists (which means 85% do not).  Many of them already subscribe to paid services like Ancestry.com or use free genealogy web sites for research. We believe that genealogy will likely be an important advertising category for us in the future, since we are attracting millions of families to our service and as the saying goes, “there’s a genealogist in every family.” But you can also say there is a photographer, event planner, scrapbooker, top chef, health nut, sports fanatic, vacationer and couponeer in every family. When we ask customers what additional features they want us to build into FamilyLink, we get everything from photo albums to recipe sharing to online chats and event planning tools. We will generate ad or product revenue from a  lot of categories as we try to meet the needs of millions of families worldwide.

This week is also intense and interesting because of all the upcoming changes Facebook announced for their Platform last week. Here are some links:

  • Video of Facebook’s platform changes. Ethan Beard, who heads up the Facebook Developers Network, describes the product roadmap in this nearly one hour video. Mark Zuckerberg introduced him.
  • Facebook’s developer policies have been condensed from 17 pages to 3 pages — all policies are now in one place
  • Nick O’Neill’s This Week in Facebook post shows how much is going on at Facebook right now. The pace of change is incredible, and it is hard to keep up with everything, but the pay off for being in the Facebook ecosystem can still be amazing.

More information has been coming out in the last few months about the best ways to monetize social web sites than I have ever seen before. The Social Ad Summit in NYC provided a lot of good information, especially about virtual currencies and virtual goods; PeanutLabs followed the Mike Arrington “Spam Facebook Like a Pro” blog post with some great survey data about how users prefer to pay for in-game virtual currency; and this article from VentureDig covers monetizing social networks with recommendations for 2010.

It’s a great time to be in social networking. Investor interest in social networking related companies seems really strong. For years the conventional wisdom was that social networks could not be monetized, but it turns out that for most of that time the fastest growing social networks (like Twitter today) weren’t even focused on monetization. They were sacrificing revenue or deferring even thinking about revenue to capitalize on the fact that millions of people would be joining social networks and that the network effect would lead to a few winners, with a winner-take-most outcome. That was a very good bet.

It is well known that Facebook has turned cash flow positive, Twitter raised money at a $1 billion valuation, and Zynga is generating a ton of revenue, some say about $250 million this year. But it is not so well known that teen social network myYearbook turned profitable this year (in Q1 according to CEO Geoff Cook) because of “Lunch Money” and virtual goods. There are other under-the-radar social networking companies and app/game developers that aren’t well known at the moment that will breakout in 2010 and become widely known.

Here’s to hoping that FamilyLink.com will be one of them.

FamilyLink Climbs Facebook Developer Leaderboard

Facebook Developer Leaderboard


Sorted by Monthly Active Users

Name DAU MAU Daily Growth
1. Zynga 47,142,368 161,442,415 1.11
2. Playfish 12,136,211 57,661,305 -0.04
3. RockYou! 2,493,761 41,616,918 -1.41
4. Facebook 11,868,141 32,375,076 -0.26
5. Causes 2,135,480 31,881,017 0.72
6. Slide, Inc. 1,234,691 24,757,153 -0.05
7. Familylink.com 1,266,743 22,096,540 0.72
8. SlashKey 5,830,463 18,709,422 -0.08
9. 3happybytes 549,065 18,643,657 -4.07
10. LivingSocial 708,836 17,740,792 -1.30

If you don’t count Facebook’s own applications, FamilyLink.com is now the #6 developer in the Facebook ecosystem, based on Monthly Active Users. It won’t be easy to climb this chart, but with some of the new features we are launching soon, there is a chance that we will.

Posted via web from Paul’s posterous

oh my gosh, facebook is for families

On Feb. 2nd, InsideFacebook reported that the fastest growing demographic on Facebook is women over 55. 

In just the past 120 days, usage of Facebook by women over 55 has grown by an astonishing 175.3%.

Our team at FamilyLink.com is particularly excited as social networks attract older users because our mission is to connect families to each other using technology, and the glue that keeps most families (and extended families) together often happens to be the older female family members–moms and grandmas.

As they come into social networks in droves, a very large percentage of them do so with the primary purpose of communicating with their children and grandchildren–and not necessary just with their friends.

My mom started using Facebook actively just a few days after Christmas. During the holidays we had a big family discussion about how we could all keep in touch better. Everyone talked about their Blackberries, iPhones, Facebook and even Twitter. 

I am now friends on Facebook with my mom, my siblings, my 82-year old aunt, and dozens of cousins, children of cousins, nieces, nephews, and other extended family. And we all use We’re Related. In fact, the primary way we found each other was through this application.

Time Magazine published a “Nerd World” column this week titled “Facebook is for Old People” in which author Lev Grossman listed 10 reasons (all in jest) why older people love Facebook. Reason #7 was:

We have children. There is very little that old people enjoy more than forcing others to pay attention to pictures of their children. Facebook is the most efficient engine ever devised for this.

That’s pretty funny. But more based in reality than Grossman’s claim that old people want to force others to see pictures of their children is the fact that most older people care more about their family members than younger people do and they themselves want to continually see new family photos

Young people are busy with school, friends, and work. All of life is ahead of them, and they are optimistic about the future. It’s well known that college students phone home mainly when they are out of money. ;)

On the other hand, as we grow older, everything changes. What once was important in high school, college, and in our work years, no longer seems to matter so much. We have so many more memories to think about and we become more thoughtful about the past. As we age, watching children (and from what I hear, grandchildren) grow, and learn, and experience life, and staying in touch with our own remaining family members, becomes the most interesting and meaningful part of our own lives.

I think there is quantifiable evidence for this. While working at a previous company (from 1998-2002) my team discovered that the older people were the more times per month they logged into their private family web sites. It was pretty astonishing to see this hold true even for people up into their 80s. 

Because older people are flocking to Facebook, the We’re Related application (by FamilyLink.com) has jumped in the last few months to become the #2 most popular application on Facebook as measured by Weekly Active Users. For a few days, it was #1 in daily active users, but that number fluctates often as various apps experience occasional surges in traffic.

When we launched We’re Related in October 2007, we reached our first million users in 29 days, and our second million a few weeks later. We were surprised that our application spread so quickly, especially because Facebook had already clamped down on the “unlimited invites” that had helped the first successful apps reach millions of users in just weeks or months. Our cap was 20 invites per user per day, so Facebook users with a thousand friends couldn’t tell all of them about our app at once. And yet we still grew like crazy.

But what surprised us even more was our discovery that half of our first two million users were from Canada, and that 17 of our top 20 cities were in Canada. We teased our product manager (who is from Canada) about making this happen on purpose.

We discovered, through further investigation, that even though the US population is about 9.1 times greater than the population of Canada, at that time there were actually more women over age 55 in Canada using Facebook than here in the US.

Then it made sense. Older people, especially women, love the We’re Related application. In fact, it might be the primary reason they use Facebook — like it was for my mom.

We weren’t 100% sure why Facebook had more members 55+ in Canada than in the U.S. But this is our theory: since Facebook was originally for college students (first at Harvard, then at 60 Ivy League schools, then for all US colleges and universities) and then for US high school students, and only in September 2006 was opened to the general public, the perception was widespread in the U.S. was that Facebook was for young people only.

In fact, the famous NY Times article from June 7, 2007 titled “omg, my mom joined facebook” reflected a reality at the time in the U.S. that young people didn’t want older people (especially their moms) to see what they were doing online.

For some reason in Canada Facebook spread quickly to all ages. Maybe it hadn’t really taken off in Canadian universities. Maybe Facebook had launched in U.S. high schools but not in Canadian high schools. Or maybe Canadian youth don’t have as many things to hide from their parents. ;) 

Who knows? But whatever the reason, there were literally more men and women over 55 in Canada than in the US on Facebook.

When We’re Related launched, it became especially popular in Canada, probably because the large population of moms and grandmas embraced it and shared it.

We don’t know if our growth will continue at the current rate, but if it does we will have more than 50 million users by the end of this year. Not bad for an app that will turn 2 years old in October.

The challenge for us now, is to design a user experience that meets the widely varying needs of millions of families. Families come in all different shapes and sizes. 

We are anxious to create an experience that works for your family, that helps you stay in touch regularly with your siblings, parents, children, and extended family, in meaningful ways.

We would like to know what you want We’re Related to do for you and your family. How can we make it better?

Please comment on this blog about what features or design changes would lead you to use We’re Related regularly to keep in touch with your relatives.

We would really appreciate your suggestions.

Or, if you want to vote on each other’s ideas, please visit our customer feedback forum on Uservoice, where thousands of our active users are suggesting ideas and voting on them.

Please let us know what we can do for your family.

Top 25 Facebook App and hybrid business models

I remember when I first learned about LinkedIn.com, and was the 4th person to sign up for it in Utah County. Soon I got into a competition with two friends to see who could end up with the most (real) connections. I finally won that competition, but we all ended up with hundreds of connections. But I remember when one of my friends knew they were losing on the connections number that they claimed to be winning on "endorsements." They changed their key metric, so that they could claim that they had actually won.

The key metric on Facebook apps used to be total installs. Some apps were incredibly viral, especially early on, and got millions of installs. But some of these apps were also fluff and lost their appeal very quickly, so they actually didn’t get used much. Later, Facebook reporting started focusing more on Daily Active Users (DAU), and apps were being valued by third party reporting systems based on how many people were using them each day. Last night, our social team told me that Facebook just replaced Daily Active Users with Monthly Active Users (MAU), and that we are one of the winners in this changing in reporting. With this metric, our We’re Related application jumps up to rank #23 overall for all Facebook apps, with more than 2.1 million Monthly Active Users. It’s gratifying to see our application being used by so many Facebook users world wide to connect with relatives.

Quantcast is now reporting that our FamilyLink Network of sites and apps for families now has 2.77 million uniques globally and 1.15 million from the U.S. The chart looks great, with real steady growth over the last few months. If this trend continues, we’ll soon become a top 1,000 internet property globally which could lead to more revenue opportunities for the company. Our advertising revenue continues to grow as a percentage of total revenue, and we’d like to see that trend continue, even though we absolutely love the subscription business model that WorldVitalRecords.com uses to generate the majority of our revenue.

We’ll also be launching a storefront later this month for the first time with thousands of products available for purchase, so for the first time we’ll be able to advertise these products to our millions of users.

Our investors support our hybrid business model (subscription, advertising, e-commerce) but it is hard to forecast each one of these with such a short track record. We started seling advertising in January. And now e-commerce is just about to launch. I’m sure all of these revenue streams will grow, but at what rate?

Can anyone who has worked in a company with a hybrid business model privately email me, or comment publicly about what they think is typical for the revenue-mix going forward?

I need to carve out a few hours to read some SEC filings from some internet companies so I can find some of this info out myself. A friend of mine said he’ll try to make SEC filings available on the Amazon Kindle, and I told him I’ll be subscribing to a bunch of them, so that every quarter I’ll get them pushed to my device

That reminds me of a great domain name that Provo Labs once
purchased for a potential service to make SEC filings more accessible
and searchable. The domain was suggested by social media creative
genius and podcaster Judd Bagley. It was 10qverymuch.com. We might even
still own it, if someone would like to make an offer for it.

I find myself reading TechCrunch and Mashable every morning on my back porch from my Kindle. I was amazed when I found myself paying for a subscription to these blogs, when they are actually free online, but they are really cheap and the Kindle reading experience is much more enjoyable and relaxing than sitting in front of a computer, or even using my blackberry or iphone. Yesterday I wanted to subscribe to the Economist on my Kindle, but it doesn’t seem to be available yet.

Becoming a Top 1,000 Web Property

Yesterday we set two traffic records. WorldVitalRecords.com had more than 36,000 unique visitors–6,000 higher than our two previous best days, earlier in April. And We’re Related on Facebook had more than 105,000 daily active users.

One of the best parts about being an internet entrepreneur is how immediately your actions translate into measureable results. Our team members are working hard on search engine optimization, pay-per-click advertising, email marketing campaigns, and improving our affiliate marketing program. As each channel improves, the overall cumulative results are exciting.

When you have team members that have experienced the thrill of extreme growth in the past from how a web site was built or marketed and when they are hungry to experience it again, and know how to do it, then you have a great success formula. When you don’t have a team that has done it before, you have to inspire them by getting them to listen to or read about people who have done it before.

My personal observation is that the vast majority of people that work in most companies have never experienced anything like the rapid real-time success of a massive internet marketing campaign that they personally helped launch, or a melt-down of servers caused by publicity or viral marketing from something they personally helped build. I remember watching a few product and marketing managers in the early days of MyFamily.com go through a personal transformation when they personally designed or launched a feature, or a marketing campaign, that brought in huge numbers. They were never the same again. From that point on, they wanted to do it again and again, and avoid as many meetings and as much bureaucracy and red tape as possible. They wanted to be on a small dedicate team focused on rapid development. They wanted to experience that thrill again.

Most people I have worked with over the years are willing to spend a lot of time in meetings, or in planning, or in writing 20-page MRDs (marketing requirements documents), rather than spending most of their time building a site or actually launching a marketing program. We have a high concentration of experienced and hungry team members at FamilyLink.com, so we are optimistic about the future.

A good description about the difference between a traditional business with its long-term planning cycles and a fast-paced internet company comes from Meg Whitman, who joined eBay after a successful career with Hasbro, Disney and Proctor & Gamble. In the book Net Entrepreneurs Only, on page 179, she describes the radical difference. I blogged about this in 2004

Everyday we use Omniture Site Catalyst to run our online marketing programs. But we are also looking at our public Quantcast numbers every day. Recently we were able to figure out how to place a Quantcast pixel on our Facebook application so that we can get credit publicly for the Facebook users that are using our We’re Related application every day.

Our Quantcast chart for the FamilyLink.com network of sites now looks like we must be on the verge of a server "melt-down" — and we’ve had people ask us about this. But in fact, we’ve had a ton of Facebook traffic for months now, and it is only just now showing up on our public chart. And the good news is that thanks to Amazon EC2, we are scalable as far as the eye can see.

After another two weeks of Quantcast tracking our actual usage across all of our properties, it appears that our network will break into the ranks of the top 1,000 web properties in the U.S.

It takes about 2.1 million unique visitors per month to be a top 1,000 web site or property. We’ll soon be in the company of prweb.com, looksmart.com, and stanford.edu in terms of unique monthly visitors. To break into the top 500 web properties, we’ll have to reach 3.3 million monthly uniques.

I remember going to Fall Internet World in New York City back in 1998 and first running into Media Metrix. At their booth they had a list of the top 500 web sites at that time, and I was thrilled to see Ancestry.com on that list. I remember later, after the successful launch of MyFamily.com with its meteoric viral growth, and after our acquisition of Rootsweb.com, that our network of properties broke into the top 50 in reach, and our reported monthly page views put as at #19 for all US internet properties. Imagine that–a top 20 internet company based on page views!

It is clear from those early days that genealogy sites and tools for connecting families have huge potential. With the right business model, partners, and the right team, a company in this space has tremendous potential. It’s no wonder, to me, that Geni.com reportedly got a $100 million valuation on their Series A round last year. They are still, of course, trying to grow into that valuation, but they are showing steady growth. The family tree and family social networking space is hot. It has huge potential. The big question now is which of the many various companies in this space will execute well enough to survive and to attract enough customers to become viable. Our team is quite confident that we can make it. We have a number of team members who have experienced the thrill of victory before and are hungry to experience it again.

As I said in my previous post, We’re Hiring. If you have been a part of a fast-growing internet company in the past and are interested in joining with us, please contact me and send me your resume. It’s going to be a really fun ride.

Does brand loyalty come from family word of mouth?

During nearly 20 years of marriage I think on two or three occasions my wife and I have discussed the laundry detergent that she uses. As a pragmatist, I have often come across less expensive generic detergents, which she refuses to use. I can’t even get her to try anything else, even once! She is a die-hard Tide detergent user and she would never ever consider changing brands. Upon closer investigation I discovered that she inherited that brand loyalty from her mother. I don’t exactly know how, but there is no denying that her mother’s recommendation is stronger than any suggestion that I can ever make. I need to find out if my wife’s 7 sisters also have the same brand loyalties. That would be an interesting question.

My company, FamilyLink.com hopes to become the leading developer of social networking applications for families and for genealogists. My background is in subscription marketing. I co-founded Ancestry.com in 1996 and it approached 1 million subscribers in the next 10 years to its massive genealogy database library. And now WorldVitalRecords.com has passed 25,000 subscribers and our rate of growth is increasing.

But as everyone knows, most social networking sites are free (Ryze.com was an exception, and it claimed to be the first profitable social network, back in like 2003) and rely on advertising revenue to grow. In order to generate advertising revenue from our family apps and widgets, and from our own social network (which have attracted more than 2.3 million users in the past 4 months), it will be useful to understand what brands and products are used based on family recommendations.

So yesterday, we asked some of our customers what brands they are loyal to because of their mother. Here are the top 28 responses:

1. Tide
2. Ivory
3. Clorox
4. Campbell’s
5. Crisco
6. Dove
7. Crest
8. Kraft
9. Comet
10. Quaker
11. Hellman’s
12. Dial
13. Palmolive
14. Colgate
15. Arm and Hammer
16. Heinz
17. Gold Medal (flour)
18. Dawn (dish soap)
19. Oil of Olay
20. Folgers
21. All (laundry detergent)
22. Wisk
23. Kleenex
24. Windex
25. Jello
26. Clabber Girl
27. Cascade
28. Ajax

Tide actually had more than twice as many responses as the next highest, Ivory. So the brand marketers there must have been doing something terribly right all these years.

I heard a projection at CES that 1.2 billion people will be using social networks by 2012. And since so many people try or buy products and services based on word of mouth recommendations, and since we hope to have tens of millions of families using our applications, we will invest a lot of time and energy into understanding how viral marketing (or what we called “genetic marketing” back at MyFamily.com) works within families–both within nuclear families as well as extended families.

I need to make it clear that our survey was not scientific. We got about 1,000 responses in a day. But with our reach growing larger every month, we will use surveys and quizzes to become experts on family word of mouth.

If any of the brand managers of the brands listed above (or any other major brands) want us to do some research for them and discover the genetic marketing quotient for their product, we’d be happy to work something out. We have a Facebook audience of ~2.3 million users and a genealogy audience of more than 500,000 monthly visitors.