8/18/2014 HowStuffWorks "How to Start a Social Networking Site"

How to Start a Social Networking Site

by Jonathan Strickland

Brow se the article How to Start a Social Netw orking Site

How to Start a Social Networking

Site

The World Wide Web is a powerful tool. It

allows people to communicate and connect
in ways that simply weren't possible a few
decades ago. You can chat with friends on
the other side of the planet, sharing photos
and videos while you catch up. With the
Web, you may be able to track down an old
friend whom you've not seen in years. You
can make new friends or even find your soul
Mark Zuckerberg, founder of Facebook, speaks to advertising
mate.
partners about targeted advertising.
AP Photo/Craig Ruttle Online social networking sites are some of
the most popular online destinations right
now. These sites tend to package services
together in an organized and attractive way
so that users can leverage the Web to make connections with others. There are hundreds of social
networking sites. They range in size from enormous -- like Facebook and MySpace -- to smaller sites aimed
at a specific niche -- like Ravelry, a social networking site for people who like to knit. These sites can bring
people closer together while being miles apart.

They can also be lucrative projects. Mark Zuckerberg launched Facebook in 2005 -- by 2008 he made the list
of the 400 richest Americans with a net worth of $1.5 billion [source: Forbes]. The husband-and-wife team of
Michael and Xochi Birch started the social networking site Bebo in 2005 as well. Three years later, AOL
purchased the site and the couple netted $600 million [source: Mashable]. A quick glance at the history of
online social networking sites will uncover several other remarkable success stories, too.

Just because there are a lot of social networking sites on the Web doesn't mean the well is dry. In fact,
someone may come up with a brilliant idea and implementation of a social networking site tomorrow and
become the next great innovator of Web 2.0. That someone might be you. But what does it take to start a
social networking site?

Starting a Social Networking Site:

The Basics

Your first consideration for your social

networking site should be its focus. Without
a focus, your site will just be a mishmash of
Web services and features. While your site
may have engaging applications and a
snazzy look, it won't make a big impact on
your users without that initial focus.

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Do you want your site to be a general-

purpose social networking community? If
so, that means you'll be going head-to-head
with some of the most popular Web sites on
the Internet. Giants like Facebook and
MySpace dominate the social networking
space in the United States. In other
countries you'll go up against sites like
orkut (in Brazil), Bebo (in the United
Kingdom and Ireland) or Hi5 (in China).
These sites not only have several years'
head start, they also have millions of
Tw o high school students created the m yYearbook social members.
netw orking site.
Screenshot by How StuffWorks.com
Another option is to create a site around a
particular hobby or activity. Giving your site
a central theme may help it through the
initial launch and inevitable growing pains as
you gather an audience. And by choosing a theme, you'll attract users who are already interested in the
subject matter. Interested users are engaged users. That means they're more likely to contribute to the
community and stick around. If there's nothing interesting for your users to do they'll just leave.

Let's say you've got the perfect theme in mind for your social network. There's a potential audience out there
on the Web just waiting for a community that caters to their interests. What do you do next?

Make a list of the features your site will offer. This should include everything from member profile pages to any
message boards or messaging services you plan to include. You may have to buy these features from a
vendor or build them yourself. Some may even be available in a free, open-source format. Resist the
temptation to include everything -- your site will become a chaotic mess if you do that. Instead, choose the
elements that best fit your theme and work from there.

You'll need a host for your Web site, too. If you expect your site to grow quickly, you're going to need a host
that will provide enough storage and bandwidth to meet your needs. For the most part, hosting on the Web
isn't free. Assuming you aren't lucky enough to find someone willing to donate hosting services, you're going
to need to put money on your mind.

THIS INVESTMENT IS JUST RIGHT

One danger of seeking venture capitalism may
seem counterintuitive: You could end up with an
investment that's too large for your business.
Eventually, you'll need to pay off that initial
investment. If it's more than what you actually
need to run your business, you could find that it's
difficult or impossible to pay that investment off
over time. Who would have thought too much
money can be a bad thing?
Costs of Starting a Social Networking Site
One way to raise money for your site is to seek out
venture capital (VC). A venture capitalist is a person
or organization that invests money into new businesses
in the hopes that the business will succeed and return
a profit to the investors. Many Web sites got their start
via an initial VC boost that propelled them into success.
A few, like the messaging service Twitter, have survived
mainly on VC without any other real business plan.

Only a small percentage of startup businesses ever receive VC. You may either have to supply the capital
you need to launch your site on your own or seek a loan from a more conventional source. Every approach
carries with it some risk. You should give careful consideration to every move you make before committing --

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make sure you can cover costs if the site takes longer to succeed than you'd planned.

Twitter became famous for not only being a popular social Web service, but also for lacking a business plan.
Twitter stays afloat mainly through seeking rounds of VC. But that's not necessarily the best approach for the
average business. You should take some time to formulate a business plan. How will your site make enough
money to sustain itself or even turn a profit? This isn't an easy question -- even giant sites like YouTube still
struggle with the answers. But if you don't spend time thinking about how your site will generate at least
enough money to cover costs, your new project will have a very short shelf life.

It's also important to remember that business plans aren't set in stone. As time passes, you'll find it
necessary to revisit your business plan and make adjustments. You may find that Web advertising is your
best bet at generating revenue. Or you might develop an application platform for Web developers and charge
them a small fee to incorporate their apps into your site. It's important to keep an open mind and remain
flexible.

Starting a social networking site is a big job. You'll have to build a foundation for an online community and
then respond to its needs as it grows. It's almost a guarantee that your users will begin to ask for things you
never considered when you first sat down with your idea. But if you stick with it and really put in the effort, you
may find that a social networking site can be a rewarding project.

Learn more about social networking by following the links on the next page.

Lots More Information

Related HowStuffWorks Articles

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Top 5 Niche Social Networks
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Sources

Entheos. "How To Start Your Own Social Networking Site." Jan. 9, 2009. (July 14, 2009)
http://webdev.entheosweb.com/2009/01/09/how-to-start-your-own-social-networking-site/
Forbes. "The 400 Richest Americans -- Mark Zuckerberg." Sept. 17, 2008. (July 14, 2009)
http://www.forbes.com/lists/2008/54/400list08_search.html?Name=zuckerberg&Age=0-99&NetWorth=1.0-
70.0&City=&Source=
Glazowski, Paul. "Bebo Founders Talk History Of Network And Past Web Efforts." Mashable. March 16,
2008. (July 31, 2009) http://mashable.com/2008/03/16/bebo-history/
Hendrickson, Mark. "Nine Ways to Build Your Own Social Network." TechCrunch. July 24, 2007. (July 14,
2009) http://www.techcrunch.com/2007/07/24/9-ways-to-build-your-own-social-network/
Klein, Karen E. "How to start a social networking site." Los Angeles Times. June 9, 2009. (July 13, 2009)
http://articles.latimes.com/2009/jun/09/business/fi-inbox9
Miller, Claire Cain. "Venture Capitalists Look for a Return to the A B C's." The New York Times. July 6,
2009. (July 13, 2009) http://www.nytimes.com/2009/07/07/technology/start-ups/07venture.html

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