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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.

17 of 167 comments (clear)

  1. Wonder if their time hasn't already passed... by IANAAC · · Score: 5, Interesting
    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?

    1. Re:Wonder if their time hasn't already passed... by dmomo · · Score: 3, Interesting

      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

    2. Re:Wonder if their time hasn't already passed... by hodet · · Score: 4, Interesting

      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.

    3. Re:Wonder if their time hasn't already passed... by DerekLyons · · Score: 4, Insightful

      I would imagine it's down to too few people being on it still.

      Not just too few people... it's also feature incomplete.
       

      How long do you suppose people will wait before just not bothering with it?

      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. First impressions matter, and a barred door with a sign saying "only kewl kids allowed" makes a powerful first impression. In addition, G+, and Diaspora, and now Ello can't seem to grasp that to most people, personal privacy is just one of the many factors that they weigh. On top of the network effect there's also the features the system supports (chat, pages/groups, games, etc...), and all of the would be pretenders have fallen short on that front. (Or added them too late to make a difference.)

      On top of that... Ello is going to have to come up with some pretty impressive optional features in order to induce people to pay for them - things the users can't get elsewhere while *also* providing a complete set of the features users have come to expect. That's a very tall order.

      There's no doubt that like G+, Ello might be able to eke out a meager living on the fringes... but as a Facebook killer, or even serious competitor, it's already dead.

    4. Re:Wonder if their time hasn't already passed... by rsborg · · Score: 3, Interesting

      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.

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    5. Re:Wonder if their time hasn't already passed... by rsborg · · Score: 3, Interesting

      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.

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  2. Re:G+? by Rik+Sweeney · · Score: 4, Funny

    Google+ is popular?

  3. Oooh ... formally promised ... by gstoddart · · Score: 4, Insightful

    Wow, they formally promised.

    Is a formal promise more legally binding than a non-formal promise? Is it transferable and binding to someone who subsequently buys Ello?

    It sounds good in principle, but is it really legally binding in any sense?

    As always, I remain skeptical about such things ... because time and time again companies have reneged on such promises. Or after they've gone through bankruptcy/get sold the new owner simply ignores any of these things.

    --
    Lost at C:>. Found at C.
    1. Re:Oooh ... formally promised ... by Mr.+Slippery · · Score: 4, Informative

      It sounds good in principle, but is it really legally binding in any sense?

      Yes. A corporation's charter is legally binding on it, and "benefit corporations" are a distinct type of legal entity.

      --
      Tom Swiss | the infamous tms | my blog
      You cannot wash away blood with blood
  4. Ironic: if you "OK" the manifesto it shares on FB by xxxJonBoyxxx · · Score: 4, Insightful

    Ironic: when you "OK" the manifesto...it invites you to "Share the manifesto" on Facebook, Twitter, Pintrest, Google+, Tumblr, Reddit and LinkedIn.

  5. Re:Ironic: if you "OK" the manifesto it shares on by gstoddart · · Score: 5, Insightful

    And it serves up data from cloudfront, which is just a front end for Amazon's analytics, isn't it?

    It also makes references to integrating with YouTube, and doing an auto-push to "other" networks (which I assume is the list you gave).

    So, we won't sell your stuff, but we'll be so tightly integrated with these other sites that they'll know what you're doing anyway.

    If the whole point is to avoid Facebook et al, WTF is the point of broadcasting to them everything you do?

    Goodbye Ello.

    --
    Lost at C:>. Found at C.
  6. Re:G+? by 93+Escort+Wagon · · Score: 5, Funny

    On Slashdot, an alternative joke might've made the OP's intent clearer:

    "So it's trying to be Diaspora without the popularity?"

    --
    #DeleteChrome
  7. In bankruptcy, information is an asset by Overzeetop · · Score: 4, Insightful

    And no matter what the charter is, if they are liquidated the court will sell all of your data to the highest bidder to pay off creditors.

    --
    Is it just my observation, or are there way too many stupid people in the world?
  8. Re:Open social network standard by Anonymous Coward · · Score: 3, Informative

    Tent is attempting to do this.

  9. Lots of weasel words in there by enjar · · Score: 4, Insightful

    "user-specific" = "we are going to sell aggregated data"

    "on behalf of a third party" = "we are going to get direct ad sales up and running soon"

    #3 is just hysterical ... if they get acquired, they lose the right to any such thing as they become a wholly owned subsidiary, subject to whatever policies the parent company deems fit. As if it hasn't already happened about a billion times by startups who did one thing, then were bought up and summarily dismantled. Ello makes a false assumption that people give a damn about their product. An acquiring company may see it as a way to get a seasoned dev/qe team and shutter the service entirely. The examples of plucky startups that got pulled into the Apple/Google/Microsoft/$GINORMOUS_COMPANY orbit and summarily forgotten or dissolved is pretty big.

  10. Re:All that money... by Will.Woodhull · · Score: 4, Insightful

    Any typesetter will tell you that the choice of font is important to getting your message across.

    Ello's choice of a mono sans-serif font is significant for indicating that their message is a simple but powerful one. And that they are significantly different from their competitors.

    Volkswagen in the 1970s used the same approach to emphasize that their vehicles were so different from USA cars that you could not measure their performance using the same yardstick. Volkswagen was all about mpg and economy when USA car makings were competing on creature comforts and acceleration. Ello's choice of font is emphasizing that its product should not be judged with the same criteria that Facebook wants you to use.

    The danger with Ello's choice of font is that if used in conveying any message that is not simple, like instructions or an argument about the evils of advertising, many readers may feel like they are being treated as grade schoolers, and be turned off by the typesetting. Time will tell whether Ello will avoid that pitfall. Hopefully they have already chosen a proportional font for lengthier prose.

    --
    Will
  11. Re:All that money... by NotDrWho · · Score: 3, Funny

    Monospaced fonts have a warm and rich sound that you just can't get out of a CD or digital file.

    --
    SJW's don't eliminate discrimination. They just expropriate it for themselves.