Friday, August 17, 2007

Facebook Seeded Entreprenerialism

I met 10 people at Facebook Developers Meetup last night at Neto in Palo Alto and saw 3 cool Apps not formal demos, but entreprenurial feedback sessions on future plans - Zoo by Action, ulinkx by Saket and a stealth mode professional networking App by two guys who moved from NY to launch a cool FB App . Dave Westwood had great experience from Myspace and helped us make the connection to Facebook as the new platform.

I came back excited remembering the day I first saw the Mozilla Browser and the Web revolution began.

For the past few months, I've had my share of Facebook hype stories and ideas for Facebook Apps for startups I am associated with and exposure to old business types analyzing like many analyzed the Web as it shifted and morphed and grew and crashed and was reborn.

Heres my new revelation why I believe Facebook with it semi-open platform is a real business here to stay and threaten the existing Web ecosystem only to help new entrepreneurs:

1. Facebook offers a UI platform with built-in viral play so anyone can build an App on FB and instantly get viral play within its network. The web is full of smart techies who want to build technology cooler than the next person, but no technology is sustainable business by itself.
So every App builder needs to market it. FB offers instant viral play just by building on its platform.

2. I think today, times are analogous to the early days of creating a web site when Yahoo was manually indexing them in their home page. My favorite FB App Booze-mail got 200K users within 2 weeks with no marketing.

3. Everyone loves Google for its cool search, but what made them a business and the biggest brand we all wake up to is their Ad business helping big and small businesses by bringing their customers to their sites. Facebook is a real threat to Google in that App developers are flocking to FB to park their new tech ideas to allow FB to send users their way to start building dependency on FB as we did with Google.

4. Theres an entrepreneur in every creative person, especially ones who can code as a way of expressing themselves. Facebook makes it cheap to build an App and get started with user traction. Not a full business, still a great start!

5. I have smart friends who are watching on the sidelines questioning the proprietary platform on limitations of access control and ability to personalize a user's experience in an Application environment. I agree the FB Apps I have seen so far (not including the ones I saw last night at the FB Developers Meetup and the App Cause) are playful ones as a test App built by smart techies.

Its the beginning, some Apps make an hybrid using the FB platform as the UI and lead to a Web site. Others are building robust backend systems with FB as the UI platform to benefit from the viral play.

Facebook has to open up a lot and make many important decisions to become a Google and not Netscape, but it looks promising that we can all be part of building the social operating system stitching our Apps to create a new ecosystem here.

Its exciting as the beginning of some real outlet for technical expertise with a business window to reach users to validate your idea. Welcome to Facebook Seeded Entrepreneurialism.

Be sure to checkout Dave McClure's comments on the hype around VCs investing in Facebook and the real venture fund focused on Facebook Apps - AppFactory run by Salil Deshpande.

5 comments:

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