Second-tier social networks feel the pain too
Company:
Blog article discussing the recent decline of Facebook.com, will it affect second-tier social networks too?
Quote:
Other Second-Tier Social Networks Susceptible?
It will be interesting to keep an eye on other second-tier social networks, such as Hi5, Tagged and myYearbook.com.
At this point, there’s no reason to think that their fate will be any different from that of Piczo and Faces.com. Unless, of course, they decide to cash in the chips and find a party willing to provide an exit.
Unfortunately, when you take VC money at a valuation that isn’t close to being in line with what your company is really worth, cashing in the chips sometimes isn’t an option.
The truth is that the generic, mass-market social network is a commodity and has been for some time. This doesn’t bode well for once-popular second-tier social networks that simply expected their luck to continue perpetually.At the end of the day, one thing is becoming clear. Bubbles may come in different shapes and sizes, but the result is always the same: they pop.
