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June 11, 2008 9:54 AM PDT

GSP East: How to battle the Facebook zombie army

by Caroline McCarthy
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From L to R: Dave Morin, Josh Elman, Ruchi Sanghvi, Ben Ling, and moderator Dave McClure

(Credit: Caroline McCarthy/CNET News.com)

ARLINGTON, Va.--A quartet of Facebook's platform engineers took the stage on Wednesday morning at the Graphing Social Patterns: East conference, for a discussion led by conference organizer Dave McClure about what's next for the social network's developer initiative. Speaking to the developer-heavy audience at the small conference were senior platform manager Dave Morin, program manager Josh Elman, product manager Ruchi Sanghvi, and director of platform product marketing Benjamin Ling.

Morin said that the social network has hit the milestone of 80 million active users worldwide.

As is typically the case with conference panels featuring Facebook employees, the four participants were refined and well-coached, their dialogue frequently dotted with mentions of Facebook's "trusted environment" and the desire to give users more control over their data. But their message was clear: Facebook has to rein in its platform, which now has over 24,000 applications available, to keep that madcap rush of Zombies, Vampires, and Pirates vs. Ninjas under wraps.

"The (developer) community learned a lot of viral techniques to grow, and what we found is users didn't really like that," Ling said of the social network's "app spam" problem. "We opened up the set of tools to enable developers to build great applications, expecting that they would build applications similarly to the way that Facebook had been building applications. And some of them did, some of them didn't, and I think a lot of them didn't."

Ling continued, "What we learned is that it was important to actually add a couple of controls into the system, create the right incentives by giving more allocations based on user feedback." That's where Facebook's impending profile redesign comes into the equation. It'll use a tabbed interface to keep many applications off the front page, cleaning up the experience but leaving many developers to worry that they won't be able to get the same kind of traction. Considering some developers were already concerned that Facebook had been instituting new regulations on the platform that made it tougher for them to spread the word about their applications, it could be a shaky PR move.

All four panelists said that while some developers may initially have issues with the redesign, it will eventually make it possible for Facebook to offer a "richer" and more dynamic experience and let applications tap even further into the social interactions on the site. More importantly, they stressed, users will stop hating on the platform and might be more likely to spread the word about applications they like.

"If we think about Facebook Platform six months ago or more, forced invites were something that you stumbled upon in application after application," Elman said of applications that required users to invite friends, which were banned several months ago. "We really want to reward through the system. We really want our top applications to be model citizens...for those that aren't, we'll be taking even sterner enforcement, potentially," he said.

"Allocations for our distribution channels are now based on users' feedback," Sanghvi said regarding the fact that applications will be promoted based on internal statistics on how many users are actually sticking with them. "Ever since we changed the allocations based on user feedback, we noticed that the acceptance rate for requests has gone up 30 percent."

More about Facebook Connect
Morin spoke extensively about Facebook Connect, the data portability project that he's been working on for quite some time. "The idea behind Facebook Connect is to allow users to take their Facebook data with them wherever they go on the Internet, or devices, or something like that," he said. "We all spend a lot of time in Facebook building up what we've commonly referred to as a social graph, but really what that means is when you want to go (outside the site)."

One of the launch partners for Facebook Connect when it debuts later this year will be social news site Digg; syncing a Facebook account with a Digg account will mean more than just a single log-in, Morin explained. "If you go to the Digg site today, you might see there's the 'most popular' list of Diggs in the entire system," he said. When Facebook Connect goes live on Digg, in contrast, it'll be "possible for me to see which things my friends are Digging. Just the smallest bit of social context actually enables me to have a better experience on the site, because I can see what my friends are doing."

The panelists were vague as to how exactly Facebook Connect will tie in to the social network's privacy control groupings, which it launched earlier this year.

Some more tidbits: Facebook will certainly be launching a payment system for application developers, as has been widely rumored, but Ling--a veteran of the Google Checkout technology--wouldn't provide a time frame. They've also tossed about the issue of an ad network for developers, but haven't made concrete plans.

The FBFund developer grant fund, which launched last fall, has given money to "more than two, less than 10" developers who applied, Ling said; Elman added that five to 10 more are "in the queue" and that grants of between $25,000 and $250,000 have been handed out.

The company's recent announcement that a substantial portion of the platform would be open-sourced was designed to "enable developers to have deeper insights on how the platform works," Elman explained. Developers will be able to tap into more extensive metrics on the platform, he said.

And Ling, the Google veteran, reiterated the company's common talking point regarding its blocking of Google's Friend Connect project. "We are working with Google very closely to figure out how to work together in this space," he said. "As it stands, they are violating our privacy policy."

Originally posted at The Social
October 8, 2007 11:28 PM PDT

How to make money on Facebook: No one knows

by Rafe Needleman
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Hooman Radfar: Terms of Service agreements are made to be broken.

(Credit: Brian Solis)

On Monday at the Graphing Social Patterns conference, I moderated a panel about making money from Facebook apps, with Giles Goodwin of Widgetbox, Hooman Radfar of Clearspring, and Jeff Nolan of Newsgator. It's a complicated question, especially for companies that have existing Web-based businesses. When do you start work on a Facebook app? Will a Facebook product cannibalize your other Web products? Can an online business survive on Facebook exclusively?

The panel agreed on just about nothing, which is indicative of a market in a very early stage of development. My favorite issue came from an audience question. John Furrier asked, Is the Facebook Terms of Service (TOS) an inhibitor to innovation, or a useful framework? Radfar said that smart businesses will always push, or even violate, a platform's TOS when building new products. "It's open to negotiation," he said. Nolan extended the thought: Companies don't own their terms of service, he said. "Users dictate" the TOS that they will support.

Brian Solis wrote a summary of the panel discussion on his site, Bub.blicio.us.

October 8, 2007 5:32 PM PDT

New ad networks leverage Facebook's long tail

by Rafe Needleman
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Let's say you've got a great new Facebook app or widget. Good for you! Too bad no one is going to see it.

Narendra Rocherolle (and a few other entrepreneurs) are trying to rescue your app. Rocherolle launched fbExchange a few months ago with the goal of making the "long tail" of apps work for developers. The idea is that you put a little ad banner on your page, which other apps are pitched on. In exchange, your app gets advertised on other Facebook apps.

fbExchange tucks ads into a little bar at the top of the site.

You can buy clicks if you have no traffic to feed into the network. You can also sell your advertising space outright if you don't want to participate in the click-for-click exchange.

All ads are single-line text blurbs that run at the top of Facebook app pages. Coming soon (possibly this week), fbExchange will be adding new advertising units.

I like this model. You can pay if you need traffic. You can charge if you have it. Or you can go freebie if you have some and need a bit more.

Other startups are working on Facebook advertising networks. Apps developer Hungry Machine is launching its ad network this week; the founders just showed me a demo of the analytics engine, which looks very strong. Lookery is also in the process of launching, and although the site is live, it wins my new Webware Mud Award--you can't really tell what the site does until you log in (and not much then, either). But trust me: It's an ad network. See also Social Media, which works across social networks; RockYou, which operates several successful Facebook apps; and Cubics.

Rocherolle is up to more with fBExchange than just ads, though. He's hoping to create a data exchange, where one site can grab social network information from another, to build mashups. The data Rocherolle is hoping to help companies expose even Facebook doesn't have. For example, if you subscribe to a recipe app on Facebook, Facebook's servers will know that you use the app and which of your friends use it, but Facebook won't know which recipes you like, since that data is store on the app's servers, not Facebook's. Rocherolle wants to help create an exchange for this data. Hungry Machine's execs also pitched me on a similar vision; they said they hope to use cross-app data to more effectively target their ads.

There is a chance that Facebook itself might launch an ad program that competes with these companies, but in the meantime, Facebook developers looking to make a few bucks--or get the traffic they need--might want to experiment with these new networks. Advertisers should get onboard soon, too. Getting experience with Facebook advertising is cheap right now. Rates are sure to go up as the platform matures.

October 8, 2007 11:54 AM PDT

Facebook advice from zombies

by Rafe Needleman
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Lance Tokuda is the CEO of RockYou, a social network app building company. RockYou makes music and photo sharing apps on Facebook, as well as a very popular "wall" replacement, SuperWall. The app I'm most familiar with, though is Zombies, which I've heard derided as the "multi-level marketing social app" (although, really, isn't that the point?). I tried it for a while but recently uninstalled it since I couldn't get my wife to stop biting my zombie. And not in a good way.

What is the secret of Zombie's success? Lance spelled it out during a talk at the "Graphing Social Patterns" conference in San Jose today. His first point: Forget MySpace. Use Facebook. Its API lets you access the friend network and grow apps virally. Good apps, he says, grow seven times more quickly on Facebook than MySpace.

The Zombie app for Facebook has 197,846 daily active users.

(Credit: Facebook)

These are his tricks for taking advantage of the platform:

1. Promotion. No matter how good your app, you can't really expect it to go from zero to a million users on its own. You have to seed it. RockYou advertises to about 100,000 key people when it launches a new app. Once that happens, if the app is good, it can grow to a million users in literally just a few weeks. (A previous speaker, Forrester Research analyst Charlene Li, reminded the audience that you can target advertisements easily to specific groups and geographies.)

2. "Tweak the virality." Ok, really, this is obvious, and I wanted more advice. Lance said there were about 50 things you could do to improve the pass-along signup of an app. The only little actualy tidbit he dropped was to use the ">" character in text to drive people forward to sign-up pages. Tomorrow, he said, the technical sessions at this conference will cover more of the tweaks.

3. Bundle. If you have a large app, you can bundle functionality of a new or smaller app in it to get it growing. If you don't, you can partner with other apps. MySpace used to kick apps off if they did this. Facebook does not have these restrictions. Look for partners who will sell you their coattails.

4. Scaling. Apps on Facebook can grow so fast they can melt down traditional ISPs. Lance recommends Amazon Web Services, which are built to serve growing and bursty traffic without requiring you to pay for capacity you don't use.

Dan Farber at ZDNet covered LinkedIn founder Reid Hoffman's keynote.

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