Ello Formally Promises To Remain Ad-Free, Raises $5.5M

Social media site Ello is presented as the anti-Facebook, promising an ad-free social network, and that they won't sell private data. Today, they've also announced that Ello has become a Public Benefit Corporation, and that the site's anti-advertising promise has been enshrined in a corporate charter. The BBC reports on the restrictions that Ello has therefore entered into, which mean the site cannot, for monetary gain,

1. Sell user-specific data to a third party
2. Enter into an agreement to display paid advertising on behalf of a third party; and
3. In the event of an acquisition or asset transfer, the Company shall require any acquiring entity to adopt these requirements with respect to the operation of Ello or its assets.

While that might turn off some potential revenue flows (the company says it will make money by selling optional features), as the linked article points out, it hasn't turned off investors; Ello has now raised $5.5 million from investors.

Comments

Wonder if their time hasn't already passed...

[IANAAC]

I don't know that many people that have gotten an invite to join, but the ones that have don't really have anything positive to say about it.

I would imagine it's down to too few people being on it still. There was such initial hype for it, then nothing. How long do you suppose people will wait before just not bothering with it?

Re:Wonder if their time hasn't already passed...

[Anonymous Coward]

My experience with the Ello crowd is the same as with the Google+ crowd. About 8 of my friends left Facebook, cursing the day it was made and whipping it the cyber finger saying they'd never deal with Zuck and his ilk again and every one of them was back within three weeks. Fewer left for Ello but every one of them is back in Facebookland without so much as a peep about their experience abroad. Meh. It is what it is.

Re:Wonder if their time hasn't already passed...

[dmomo]

The site just wasn't ready for mass adoption. There's a great idea behind it, but as of last week, it was just so damn unusable. I'm tempted to think that their marketing blitz was premature. But perhaps the goal wasn't to show off the site so much as to get just enough attention to turn the heads of investors. If so, maybe it worked. They've gained some cash flow while also validating the idea that there IS a desire for what they are building.

Now, they can use some of this funding to actually make the UI usable and add in those missing features. Maybe when their next media campaign comes around, there will be a site worth applauding. We can only hope.

Good for them. I'll keep my account active and hope it turns into a site

Re:Wonder if their time hasn't already passed...

[hodet]

Most people don't give a crap about Facebook's privacy policies. I personally don't touch facebook with a 10 ft pole but that is my choice and understand why others keep going there. That makes me about the only person in my family and social circle that does not use it. Stay in touch with the people you care about and you can always connect with them, it just takes effort. I don't know anybody who would move from facebook because people are there already. It's a noble thing to try and create something better. However, if you have ever seen the Personal Power Grid, any company would be in the Ceaselessly Striving box, they are taking action and have no control over the outcome. Most users just do not give a crap and are in the Acceptance (Let It Go) corner.

Re:Wonder if their time hasn't already passed...

[rsborg]

It's already started... Ello has failed to learn the lesson of G+ and odds are, it will suffer the same fate. Gatekeeping at launch is just shooting yourself in the foot - people want to try your system, and if you lock them out... they aren't coming back

There are scalability issues that need to be addressed. It's simply impossible without an incredible risk and cost, to have the same scale as an established competitor, so gate-keeping is one option.

but as a Facebook killer, or even serious competitor, it's already dead.

Why does everything have to kill what's already there? Did Ello ever claim to be such? Talk about a strawman.

Re:Wonder if their time hasn't already passed...

[rsborg]

In the case of a general social networking tool, there kinda can be only one.

You're again... making assumptions. What precludes Ello from occupying a target niche of social networking? Have you not heard of LinkedIn? Did Stackoverflow *have* to beat out Yahoo Answers in order to gain traction and meet it's need?

It's a massive simplification to assume that a dominant player in a space where network effects reinforce their position is unassailable. How do you think Google and Apple were able to make any inroads against the Windows ecosystem? By addressing an area where Microsoft simply could not compete (mobile). Facebook likewise simply *cannot* compete where strong privacy is a key requirement. Their entire business model goes against it (similarly Google to an extent). Diaspora was a failure simply because people don't want to self-host, though technically their proposal had merit. Also 10 years ago, Friendster and MySpace were dominant - where are they now? Not to say that Facebook is doomed, more to say the market can and will evolve.

What is more interesting than competing with Facebook, IMHO, is to assail the entire concept that personal (sometimes PII) user data is a business asset that should always be sold, licensed or exploited. Legally preventing themselves from profiting from that data poses a very interesting business limitation and a possible template for others to copy - sometimes you gain more by leaving something on the table.