Why Are Founders and Execs Leaving Second Tier Social Networks?
Employees generally don’t leave hot startups. They lose some or all of their stock options, and they also lose the resume value of being associated with a startup brand. And that’s doubly true for executive level employees.
When an exec leaves a startup it isn’t necessarily news. But in the last couple of months we’ve seen two execs leave high profile second tier social networks - one from Piczo, and now one from Bebo.
First to go was Jeanine LeFlore, Piczo’s VP of Products and Marketing. Both LeFlore and Piczo CEO Jeremy Verba tell me she left on good terms. She is now running her own startup, called LiveHit, which is months away from launching.
This weekend we received a press release that Bebo’s co-founder and VP Business Development, Jim Scheinman, has left the company to become an entrepreneur in residence at Charles River Ventures. Scheinman was also one of the first employees at Friendster back in the day.
Everyone mentioned above is a friend of mine, and yet I have a feeling I’ll never hear the whole story behind either departure. What I suspect, though, is that there may be a fear that the social networking space is heading for a shakeout. The big guys, which are roughly defined as MySpace, Facebook and (now) Orkut can manage their own destiny. The smaller players may see less riches ahead, and some execs may be looking for greener pastures elsewhere.
Here’s worldwide Comscore for each (unique visitors):

Photo Credit: Silicon Republic and Auren Hoffman.
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Piczo Zone: Better User Profiling Through Viral UGC
Social network Piczo has released a new feature into private beta: Piczo Zone. It’s being tested by a small group of users now and will be released generally in a few weeks.
What is it? Product Evangelist Keith Crowell says its a way for users to decorate their profile pages in much the same way as teenagers decorate their rooms - with posters, music, etc. Users take (or create) images, videos, style sheets or just about anything else and then add it to their profile. Each content item also includes descriptive data and tags. When someone creates something (say an image showing a band or artist name), any other user can add it to their profile as well. All of the “stuff” created in the Piczo Zone will then spread virally as the more popular items gets added by more and more users.
Users like this stuff - they can see what the popular kids (however defined) put on their profiles and then add the same things to their own. For now users can’t add stuff that they see directly from their friends’ profiles, but software engineer Devon Boyle says they’ll add that functionality shortly.
Users Love This Stuff. But So Do Advertisers
But there’s another reason this is important: user profiling for advertising. As users add artists/bands, popular movies and well known brands (nike, whatever) to their profiles they build an extremely detailed demographic and psychographic profile of themselves that can be used for far more targeted advertising. As an example, a music label could focus advertising around a new album release to users who’s added certain similar bands and artists to their profile. It’s highly likely that the advertising will be aimed at people who are likely to buy, and ad rates increase dramatically.
The content can also be used to predict new trends far before traditional methods. Users will create their own images for a popular local indie band, for example. As more and more users add the image, someone with access to aggregate data will be able to see what’s going to become mainstream well before it actually does. Since Piczo’s users, mostly teenagers, are the trendsetters, it’s a particularly powerful tool.
Piczo isn’t the first social network to experiment with something like this. In July we wrote about a similar product called HotLists released by HotOrNot. HotLists are made up only of images, but like Piczo users create them themselves and they spread virally as users add them from the profiles of people they view. Users immediately took to the idea, adding brands, movies, artists and other things that they identified with to build out their profile. And HotNorNot now has much deeper user information to aim advertisement at. Everyone wins.
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