When Sociality Takes a Back Seat

At SXSW last week, one of the best panels was "Start Up Metrics for Pirates": Dave McClure - 500 Hats (moderator), Ted Rheingold - Dogster, Todd Vernon - Lijit Hiten Shah - CrazyEgg Lance Tokuda - RockYou. I'd seen Dave McClure's presentation previously at Ignite Seattle, but having the other folks on the panel to provide applied examples of the metrics made the topic more relevant.

Ted Rheingold from Dogster provided his account of Dogster's loyalty issues. To quickly summarize:

• They were spending a tonne of money on Google Adwords
• The drove a tonne of traffic, and they were pumped.
  
• When they later looked at the loyalty numbers (the number of newly registered users that were returning) they were disturbed to find that most weren't returning.
• They did an audit of their Google Adwords keywords, and they noticed that the highest converting keywords were informational NOT social in nature. (no real surprise, people were searching for "boston terrier breed information" not "dog friends").
  
• Dogster redesigned their site to accommodate the information searcher. They de-emphasized their social networking component, and emphasized breed and animal ailment information.
  
• The result: they stopped spending money on Google Adwords and were driving traffic because the site was SEO-friendly (relevant-information-dense).
  

What Dogster and Livemocha have in common:

• Niche Social Networks: That is, unlike Facebook and Myspace which address a non-specific target audience, Dogster is a social network for dogs (and their humans), and Livemocha is a social network for language learning.
  
• Social Graph Comprised of Common Interests, not "Real World" Relationships: To put another way, just because I'm learning French, doesn't mean my friends are AND just because I have a boston terrier, doesn't mean my friends do.
  

Are common interests sufficient to drive strong online social ties? Clearly in the case of Dogster, it wasn't. It dawned on me during the talk that this was a perfect example of Josh Porter's Del.icio.us Lesson: Personal Value Precedes Network Value.

At Livemocha, we dodged this bullet because we built the social network as a feature to support our underlying value proposition. We looked at our goal (to help people to become communicative in a new language) in terms of a "language acquisition curve" that started with self-study (not particularly social) lessons, but gradually worked the user into the community as it benefits them.

... and, yes, in case you're wondering, here's Sousa's profile.