Just Say No…

Posted in Technology at 12:26 pm by Jason G.

I have dabbled with the LinkedIns, Friendster, Plaxo, and contemplated Facebook, but just haven’t had the urge to really get into social networking sites. That, and the ones I used briefly have never really provided any benefit other than augmenting email.

Today I came across a good reason to avoid the whole thing from Barry Ritholtz at The Big Picture:

…I think its safe to say that the marketplace does not have space for 9 (nine!) of these companies. And I probably missed some. Eventually, there may be some consolidation -we see it starting already. That means two things: One, I have no idea where my personal data and address book will ultimately end up, what company or person; and B) the liklihood is that at least 2 but more likely 3 and probably 4 and maybe even 5, and quite possibly 6 of these firms will go belly up, the long dirt nap, buy a farm.

And when that happens, the VC’s investments will be worth zero, nada, zilch, and they will seek to recoup something, anything, even just pennies on the dollar (pretty please?)…

And when that happens, when the Bankruptcy Judge brings down the gavel, the most valuable asset these companies have — all of my personal info, plus all of your contact info, plus every person you know’s name/number/email address — will be sold to the highest bidder. They may promise that they will protect your data, but I simply do not believe they can control anything post banckruptcy. The contracts are ignored.

Well said. That’s another good reason not to go whole hog without thinking twice about it.