Ello's founder defends ad-free model on the internet
Paul Budnitz, the founder of social network Ello, has dismissed criticism that the network’s ad-free service will render the product unappealing from a business point view in the long-term.
A trendy and much-hyped social network which is reportedly the subject of 31,000 sign-up requests each hour, one of Ello’s peculiarity is its refusal of any form of advertisement as well as its dismissal of selling user data to third party companies.
“When a network is very simple, people want specific features, and they’re willing to pay for those features,” Budnitz told Business Insider.
“Let’s say that for a few bucks, you can buy an emoji pack designed by a popular street artist,” he added.
“Because of how we've built Ello, it naturally lends itself perfectly to that,” he said, adding that he has received numerous suggestions from users on features that they would be happy to pay for.
However, James McQuivey, tech analyst at research firm Forrester warned that the method, if successful, would go against the trend which sees networks become popular as they’re free when first launched.
“Over all the other social media experiences from Whatsapp to Instagram to Pinterest - the reason they work is because they're free,” McQuivey told the BBC.
“You don't invite your friend to connect with you if it costs your friend money. Even in the world of digital music - you can pay for services but most people don't.
“Ello is walking into a habit which consumers already have about digital services that they can't change on their own.
McQuivey added that the method would transform users into being a product themselves.
“Every post you share, every friend you make and every link you follow is tracked, recorded and converted into data. Advertisers buy your data so they can show you more ads.
“You are the product that’s bought and sold”.