We recently heard about a new social network called Ello that is looking to take on Facebook. The company has just managed to raise $5.5 million in funding, and they have also converted the company to a Public Benefit Corporation (PBC). This move signifies Ello’s commitment to its users and its mission to provide a different kind of social networking experience.
Ello’s Unique Approach to Social Networking
Ello has confirmed that they will never show adverts on the site, and that they will never sell user data. This is a significant departure from the business models of other social networks like Facebook and Instagram, which rely heavily on advertising revenue and data monetization. You can see a statement from the company below.
The Ello PBC charter states in the strongest legal terms possible that:
Ello shall never make money from selling ads;
Ello shall never make money from selling user data; and
In the event that Ello is ever sold, the new owners will have to comply by these terms.
In other words, Ello exists for your benefit, and will never show ads or sell user data.
This commitment to user privacy and an ad-free experience is a refreshing change in the social media landscape. Many users are increasingly concerned about how their data is being used and are looking for alternatives that respect their privacy. Ello’s approach could attract a significant number of users who are disillusioned with the current state of social media.
Growth and User Engagement
The company also revealed some user figures for the first time. The social network is available on an invite-only basis, and they now have 1 million registered users and 3 million users waiting for invites. This level of interest indicates that there is a substantial demand for a social network that prioritizes user experience over profit.
Ello’s growth strategy appears to be focused on creating a strong, engaged community rather than rapid expansion. By controlling the rate at which new users join, Ello can ensure that it maintains the quality of the user experience and fosters a sense of exclusivity and community among its members.
Moreover, the invite-only model can help Ello manage its resources more effectively. Rapid, uncontrolled growth can strain a company’s infrastructure and lead to a decline in service quality. By growing at a controlled pace, Ello can ensure that it provides a stable and enjoyable experience for its users.
Ello’s commitment to not showing ads and not selling user data also means that they will need to find alternative revenue streams. One potential avenue is offering premium features or services that users can pay for. This could include enhanced privacy options, customization features, or exclusive content. By providing value-added services, Ello can generate revenue while staying true to its principles.
Another potential revenue stream could be partnerships with brands that align with Ello’s values. For example, Ello could collaborate with companies that prioritize sustainability, ethical business practices, or social causes. These partnerships could provide mutual benefits without compromising Ello’s commitment to an ad-free, user-centric experience.
In conclusion, Ello represents a bold experiment in the social media landscape. By prioritizing user privacy and an ad-free experience, Ello is challenging the status quo and offering a compelling alternative to traditional social networks. With its recent funding and conversion to a Public Benefit Corporation, Ello is well-positioned to continue its growth and make a significant impact in the world of social media.
Source, Techmeme
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