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October 20, 2003

A Social Network Monster

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Posted by Ross Mayfield

Monster.com launched a Social Networking Service today according to the WSJ (sub. req.) and News.com:
The career Web site (www.monster.com) hopes the subscription-based service will help both job seekers and employed people who want to exchange information about jobs or goals. Monster says that the networking product will enable the site to re-engage its 40 million members, many of whom are well past the typical six to nine month initial period of activity and merely have resumes in the Monster database. "What happens is someone gets a job, and we're looking for ways to maintain that member," said Jeff Taylor, founder and chairman of Monster, a unit of Monster Worldwide Inc. of New York. "What we're able to do now is to provide an instrument of introduction or assist in an introduction to other people in their professional network."
Monster's approach has several challenges. Top-down deployment of a social networking service results in fragmented graphs. Reccomending connections is one way of bridging graphs. Similarly, without an organically developed culture, its difficult to see how their target users with abandoned profiles will be drawn to connect with others let alone participate. Its easy to understand why Monster is entering this market. The Profile Database Market ($281m this year, $483 by 2006 according to Forrester) is the most directly under threat by new models that provide more value than uploading resumes. The subscription model is an attractive business model because it imposes constraints on joining the network rather than its information flow. But it is uncertain whether Monster users will see utility joining a mass advertised network of uncertain value compared to one their friends invite them into. It also seems prone to information pollution.
Here's how it works. Users set up profiles containing information including their first name, first initial of last name, skills, job, employment history, schools, interests and location. Users then can search among the network by those categories. To contact a person, however, users must pay membership fees. The fee structure hasn't been finalized, but Monster said it is likely to be on par with rates charged by online dating sites and similar services. Monster Networking is set to go live in the first quarter of next year. "Dating and alumni services have proven themselves as subscription models, so that seemed a good place to start" rather than be a free service like other recently launched networking sites, says Michael Schutzler, Monster's senior vice president of consumer products. Mr. Schutzler joined Monster in July after leaving school networking site Classmates.com a year ago, where he served as president and chief executive. Monster serves as the host of the networking community by controlling most of the content of initial icebreaker notes. This way, users don't have to give out personal information initially. Monster also send users weekly e-mails of potential network matches. To try to ensure a fun atmosphere and a network of professionals who want to be involved, users can rate their exchanges with other members using a point system.
But the point also should be made that this is a strong validation of Social Networking Services as a category. Bonus link: Phil Wolff knows a thing or two about the staffing industry and social networking services

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COMMENTS

1. Lawrence Krubner on October 21, 2003 2:15 PM writes...

"But it is uncertain whether Monster users will see utility joining a mass advertised network of uncertain value compared to one their friends invite them into."

I'm not sure this is such an unbiased remark as I'd like to see. Clearly, no one is better placed to take over the professional networking market as Monster.com. Linked-In is still facing the critical problem of getting enough people to join up that the network will start to have real value to those who join. Monster.com is well past that problem. And even if no old members ever go back and reconnect, still there will be the millions more who will hang out on that board looking for a job. And they may well get hooked in a become permanent members.

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2. David Jordan on April 19, 2004 2:33 AM writes...

I am developing the web site Individuals.com and am seeking partners to use the current and expected web traffic the name tends to generate on its own. If you have any information or leads on companies that are developing social networks, I would appreciate you contacting me.
Thank you,
David Jordan

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