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School's Out at Classmates.com | The Money Times

Money Matters - Simplified

School's Out at Classmates.com

I received an email from United Online's (Nasdaq: UNTD) Classmates.com the other day, informing me that a high school friend had signed up.

This news inspired me at first, because I tend to forget that I even
registered for Classmates several years ago. Since this particular
classmate wasn't on Facebook, News Corp.'s (NYSE: NWS) MySpace, or even LinkedIn, I figured I'd go see what Classmates is up to.

Why did I even bother?

My high school pal was registered on the site, but I couldn't send
him a message, note, or email without becoming a "gold" paying member.

There was also someone who had written on my guestbook in March.
It's intentionally blurred out, though I can find out who wrote me if,
once again, I become a paying member.

I'm not a cheapskate, and the offer for a "golden" year of
membership for $9.95 -- 75% off -- is tempting. However, why would I
pay to join a cobweb-riddled community site when I can share notes,
photos, videos, and more for free -- and to a much larger audience of
friends I grew up with -- through Facebook?

I've been kind to United Online in the past, because it didn't
create Classmates. The company behind Juno, NetZero, FTD, and
MyPoints.com simply inherited the social-networking pioneer. A failed spinoff attempt later, it's still collecting dust.

In United Online's latest quarter, its Classmates Media subsidiary
(which consists of Classmates.com and the MyPoints.com loyalty network)
saw a 2% increase in revenue over the previous year. That may seem
acceptable given the dot-com calamities elsewhere, but this is a baby
step at a time when Facebook is adding millions of new users every
month.

So my patience has worn thin here. United Online has had a few years
now to mold Classmates into a social-networking site. It will never be
Facebook or even MySpace, but if there's room for second-tier
social-media players -- Google's (Nasdaq: GOOG) Orkut, Time Warner's (NYSE: TWX) Bebo, and whatever Yahoo! (Nasdaq: YHOO) will open and shutter next -- why not Classmates.com?

It arrived unfashionably early to the party, only to wear the wrong clothes.

There isn't a market for premium social-networking sites that want
to reach the masses. If your target audience can be easily reached
through free Facebook and its peers, installing tollbooths will only
keep mainstream users away.

 

© 2009 UCLICK, L.L.C.


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