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October 10, 2007 11:13 AM PDT

Yuwie: Social networking gone very wrong

by Josh Lowensohn
  • 82 comments

I came across a very disturbing social networking site last week called Yuwie. It's another site that's decided that for some reason, using a free, and highly functional social service populated by your friends (like Facebook, MySpace, Bebo, etc.) is worth ditching for something built with very little ease of use or original design, but created to help you make ludicrous amounts of money by selling out your friends.

It works like this: you get a share of money for every page view on the service (the site makes its money by selling ads). Also, the more people visit your page, the more page views you get a percentage of. Yuwie then takes it a step further with referrals, letting you get a percentage of money from the activity of any friends you've invited to the service, along with their friends, and people who their friends have invited. This goes on for 10 "levels," so you could theoretically have close to 100,000 referrals if your friends and their invitees continue to invite others who use the service beyond the one-month probation period.

(Credit: CNET Networks)

Does this idea sound familiar? It's a pyramid scheme. The problem with this, economically, is that it's unsustainable. The people at the top can't possibly pay out the promised amount, and the people stuck at the bottom aren't getting the same benefits as those who have spammed referrals to their friends higher up in the chain. Speaking of spam, even if you're on there with your friends, you're bound to get an intolerable amount of spam from people you don't know as the service grows. The second most popular group on the service at the moment has been specifically designed as a place to add random groups of other folks to beef up your bonus money. Is this the kind of network you want to be a part of? At least the site isn't asking for a sign-up fee--if it did, it'd be illegal. And it ought to be.

The worst part is that Yuwie is pretty much a carbon copy of MySpace, circa two years ago, with nearly identical profile features--meaning you're not really getting anything more than you would with a mainstream social network. ... Read more

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