Financial News: Say Hello to Ello

There is a new social networking site called Ello. This is a new site which is currently in beta testing, public. This means you need an invite from a member and despite this, there is a lot of buzz out there. It is the talk of the network and is becoming the next big thing Facebook (FB: NYSE) will have to contend with. As their slogan says the “new social network dubbed anti-Facebook.” Well, one of their slogans which also include “Ello, the ad-free social network” and others.

At one point, the network was receiving 31,000 requests per hour and even bootleg invites were turning up on eBay (EBAY: NYSE) for as much as $500 per invite. What is Ello and why is it so exciting?

Ello is a reaction to disgruntled, already angry and disappointed users of other social networking sites like Facebook and Google Plus (GOOG: NASDAQ). These are people tired of all the privacy issues from Facebook and intrusive ads. These are people running away to a new social network. Ello.

What does Ello have that the others do not? According to their website, which is stark and barebones to say the least, they provide an ad-free environment which promises never to sell your information. It is this promise their platform is built around. They say on their site that “collecting and selling your personal data, reading your posts to your friends, and mapping your social connections for profit is both creepy and unethical.” They also say they will run a free ad-free service. So how will they make money? Every so often they will offer a premium feature. If you like said feature, then you pay a small fee.

So what does this service look like? I have had no reply to my invitation request, but from what has been reported, it is similar to Facebook with a nice added feature that can classify connections as “friends” or tune them out as “noise.”

So Why the Hype?

The site has been around since last spring but only when viral after a story in the industry standard The Daily Dot which wrote an article about the great “exodus” from Facebook as many users have serious issues about privacy concerns, how they relate to Facebook Messenger, as the app was calling numbers without permission as well as accessing the camera. Facebook response was that these claims were outdated and of no concern. Still many users are not very happy.

Another area of malcontent from Facebook users is the real name usage issue. Facebook requires one to use their real name or risk losing their accounts. This came into focus after a wave of transgender performers were forced to use their real names instead of their stage names. This makes a site like Ello even more attractive. Especially since it will give users complete anonymity.

Even with all its hype about being ad-free and claims they will never use advertisements, it is only a matter time before they must generate revenue. It is only a matter of time they will be forced to use their data, including anonymous information, to sell ad space to generate income in order to make money and stay in business. They claim in their manifesto, which I received after asking for an invitation, if they were to violate their no ad and no data mining commitment it would go against the very core of what Ello is built around.

Only time will tell and check back often for updates on Ello.

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