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Social media, in other words, is a form of digital communication that allows customers to collaborate by creating online communities to share information, ideas, and private messages. You can share the content in many codecs, including textual, audio, and video.
It's important to note that social media has evolved from information sharing to a digital gathering space, to a platform for retail, to an indispensable advertising and marketing tool in today's world. Friendster was the first to launch a social media platform, Six Degrees.
This was an excellent opportunity for many companies to create social media startups that allow people to meet up online and work together on a real-time basis.
While many of these websites were successful, nearly 90% of them failed. There are many factors to consider when building a startup. These include funding, thought validation, and options. We'll be looking at 10 examples of failed social media platforms and discussing their lessons learned.
Social Media Startups that failed and Lessons Learned
1. MySpace.com
Several individuals founded MySpace.com: Brad Greenspan and Chris DeWolfe; Aber Whitcomb, Brad Greenspan, and Chris DeWolfe; Colin Digiaro, Josh Berman, and Michael Addicott in 2003. It was the most popular social media platform before the advent of Facebook.
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What was MySpace.com?
MySpace's URL is still active, and you can still create an account. There is also an operational workplace with approximately 250-500 employees. They raised $ 37.8 million in primary and spherical funding.
It gained one million customers a month after the official launch and then registered 20 million users within a year.
Registered customers can create customized profiles on the website and share blogs and posts. They can also join other customers through feedback and messages.
MySpace could generate income through advertising on its platform, where registered customers crossed the mark of 75 million within the year 2008.
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Reasons for Failure
The founders of MySpace, both from the advertising and marketing industry, created it with a different perspective than Facebook, which quickly became their competitor. After some failures within the platform, MySpace became a platform for musicians and artists.
It was misplaced on Facebook primarily because:
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Poorly designed interface
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Functions and know-how that are not up to par
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Protection of the negative press
They tried later to find a solution to their problems by creating cleaner designs, but it was too late. Too many advertisements made MySpace less exciting, and their first source of income was from advertising. The customers stopped using the positioning after the year 2010.
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2. Friendster
Friendster was founded by Jonathan Abraham in 2001 and received funding from seven different buyers totaling $48.5 million.
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What was Friendster?
Friendster was a popular social gaming site and a prototype for social networking app development. Thanks to its popularity, it gained more than 115 million users by 2011. Customers can play online video games and send messages. They can also share content material, give feedback, and share media material with other customers, privately or publicly. It was also used to establish relationships and join a group of people with similar interests or hobbies.
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Reasons for Failure
All games and connections are enjoyable. These are the core elements of Friendster. Why does Friendster fall into the category of a failing social network? Although social gaming was why customers kept returning, it is still a limitation. Gaming is only enjoyable to a limited extent. You are always looking for new and fresh video games.
This social media failure became the missing dot because of the lack of social interaction with the social information feed options. Each social interaction is vital and will never die. This makes Facebook different from Friendster or other failed social media apps.
This resulted in a decrease in registrations and decreased usage by existing customers, which led to a shutdown.
3. Vine
Vine was founded by Rus Yusupov and Dom Hoffman in 2012 and received only one round of funding from two investors. This platform was designed to allow users to share short looping videos.
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What's Vine?
Vine was closely related to TikTok at the time. Vine was a social media platform that hosted short 6-second videos shared by customers. Vine was a microblogging site due to its video size restrictions and social options such as following, resharing, etc.
Twitter acquired the platform even before its launch because it allowed them to compete with Google and Facebook on video content material.
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Reasons for Failure
This failed social media app was due to many factors. It didn't make it to the top as a profitable company. The next cause caused it to lose its recognition.
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It evolved to be a leisure media platform, despite its original idea.
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It did not refine as requested by customers, sticking to a 6-second video format for a very lengthy time.
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There were other options for monetization.
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It wasn't the precedent for the father or mother firm.
According to one executive at Vine, "Instagram videos were the beginning of the end". Its management problems and lack of a clear path were also critical factors in the platform's loss of recognition, which led to its closing down.
4. Zapstream
This social media platform, which was short-lived, was founded in 2015 and defunct in 2016. It was founded by Devan Sood and received preliminary funding of $ 1 million.
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What's Zapstream?
Zapstream was a social stay stream platform that offered stay results. It took less than two months for the technical team to create and set up the application. They also had to make it operational very quickly. Zapstream was distinguished from other aggressive apps by its unique characteristic, "Zap".
Social app development solutions helped social media market the app. This advertising and marketing strategy may have helped Zapstream to drive 75K downloads by paying an insignificant amount to the influencer.
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Reasons for Failure
The primary causes of failure were mainly rising competition, mismanagement of cash, and incapability to raise additional funds.
5. Dopplr
Dopplr was founded by Dan Gillmor and Lisa Sounio, Marko Ahtisaari, and Matt Jones in 2007, which saw three rounds of funding from 16 different buyers.
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What's Dopplr?
Dopplr was founded to focus on the journey and as a community service for social journeys. Customers can create their journey itinerary, which may be shared with other vacationers via the contact list. This allows the community to coordinate conferences and can help one another plan their journeys.
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Reasons for Failure
Nokia purchased the journey social network platform in 2009 for $20m. Since then, the number of customers has declined. Nokia managed to keep the platform alive for a time, but there were no other options. Dopplr was closed down in 2013 due to falling consumer dependence and income. It was later listed as a failing startup.
Read More: 10 Highly Effective Ways to Grow Your Social Media Presence
6. ArgyleSocial
Adam Covati, the founder of this social media marketing and advertising software, started it in 2010. Argyle Social could raise two rounds of funds from two different buyers with a total of $1.6million.
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What's Argyle Social?
Argyle Social was a simple social media marketing and advertising software. It was interactive and easy to use. It allowed entrepreneurs to increase their buyers' social media engagement and lead technology. Their worth was the spotlight. It quickly rose to be the most popular advertising and marketing software.
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Reasons for Failure
Many social media platforms update their Application Programming Interfaces (APIs) frequently. Argyle Social could not maintain software connectivity due to a funding deficit, which led to the company's shutdown.
7. Gowalla
Josh Williams and Scott Raymond founded Gowalla in 2007 when it received $10.4 million in total funding. The company received funding from 11 investors in three rounds.
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What was Gowalla like?
Gowalla was a location-based social networking platform that allowed users to share their locations with others. The most prominent feature of the application was its check-in attribute. Once they are located in a particular area, the consumer can test in. The app offers gamification options that encourage customers to share their locations. Customers who reach the top levels may be granted access to specific options and could also win promotional items from the businesses.
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Reasons for Failure
Gowalla realized where they lacked the know-how and decided to make it up to the market. Gowalla was impressed by the design and saw rapid progress in their check-in. There were also reward options available for everyone who used it.
When the crew joined Facebook in December 2011, it was clear that they were headed for disaster. Facebook claims they were more interested in working with builders with similar values and visions to help Facebook improve certain features.
8. Secret
The secret was founded by Chrys Bader Wechsler and David Byttow in 2013. It allowed users to post content without disclosing their identities. The platform has raised $35 million through three rounds of funding from 21 buyers.
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What was the secret?
It was so named because it allowed customers to anonymously submit content material within the pal circle and then share it with the broader public. People can freely share their opinions and preferences without worrying about penalties. This feature was the reason it was valued at $100 million. Customers have become addicted to the app primarily used in Silicon Valley.
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Reasons for Failure
This was the biggest drawback of the application in a long time. Cyberbullying and harassment resulted from the posting of anonymous content, which led to customers' dependence dropping. It attracted much media attention for its destructive causes because of these reasons. This is how the app was removed from the market.
9. Yik Yak
Brooks Buffington and Tyler Droll founded Yik Yak in 2013 with $73.5 million in total funding. Eleven investors in three rounds funded it.
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What was Yik Yak, you ask?
Yik Yak allowed users to submit content via a location-based social network app anonymously. People within a radius of 5 miles were able to see the Yaks. It displayed reactions by voting up or down.
It was popularized in nearby communities, such as colleges and faculty campuses, in 2013-14. This resulted in substantial funding.
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Reasons for Failure
Cyberbullying and harassment were made more accessible by posting content material. This even led to hoax threats, which caused chaos on campuses. Yik Yak was founded for the same reason and has since been shut down.
10. Crowdmix
Crowdmix was founded by Gareth Ingham and Ian Roberts in 2013. The idea behind Crowdmix is to share music on a social network.
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What was Crowdmix, you ask?
Crowdmix was a custom social networking platform for music fans that allowed people to stream, share, and discuss their favorite bands. The beta model was only available to musicians and DJs and was not launched. The official app was not launched.
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Reasons for Failure
It was closed down due to mismanagement of funds. The funds were lavishly spent on administrative features that did not relate to the product. The administration also didn't have an open imagination and could not create a path for app growth. It was a disaster even before it was launched.
Read More: 6 Learnings that you acquire by Advertising for startups (or early stage Businesses)
Lessons from a Failure Startup
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Create a product that solves problems
Half the battle is building a product that solves a real problem for large groups of people. It's incredible how many people will jump on board when you have a mission to help.
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Every decision is important, no matter how small or large
Small and large decisions should be treated the same.
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Follow through with a vision
People are meant for leadership, and tasks are meant to be managed.
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It isn't easy to start a business
Having a clear focus and being open to trying new things is essential. The most important thing is to know when and where you should dump your cash.
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Tough conversations are every day
It is essential to be able and willing to have difficult conversations. According to the Harvard Business Review, it is essential to approach difficult conversations with curiosity and respect. Listen to what they need and try to get out of the way.
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Hire slow, fire fast
You must ensure that the people you hire are the right fit. You can take control of the company if things don't go according to plan and make changes that will get the company back on track.
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Keep your mind open to new possibilities
To develop/expand a culture, it is crucial to celebrate wins, acknowledge and analyze failures, quickly recover, and create positive patterns.
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When you need help, step up
Sometimes, you will have to work weekends or late at night. It's not a badge or something to be proud of, but it is necessary to do the job. It should be analyzed at the company and personal level if it becomes routine. Each one has an impact on the other.
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Participate in the community
Find out your product's audience and tap into them to build around it.
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It's okay to let it go, or it can drag you down
You have to let go of the product or allow it to drag. It will not only make it worse but also ruin the experience you have worked so hard to provide for the people who use the product.
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It didn't necessarily have to be a meeting
CloudApp's image-snippet tool is compatible with Mac and Windows. It can also be used with their screen recorder to improve workplace communication.
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No fundraising
Fundraising is not necessary just because you are a startup
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Holacracy
A successful organization is more likely to run well if done correctly than a hierarchy. Holacratic organizational structures give individuals autonomy and take responsibility for their actions.
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Hire remote workers
Remote work can be both challenging and rewarding. It is difficult to communicate effectively; people work better when they have long periods of focused, uninterrupted time. This will help you know when meetings are necessary and save money. It will also increase your output. This is good for the team's well-being.
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Keep your pace steady
If you don't like it, you can buy it. You must ensure that your pace is appropriate to reach your goals. The world doesn't need to hear the same thing repeatedly. Another Facebook scandal. These were all fast-moving, well-thought-out, and unchallenged ideas that eventually became unnecessarily costly. Startups cannot afford it, but the Big Five can.
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Conclusion
It was a race to build a social media platform that would outnumber customers and be the most popular. There are many features one should consider and ensure from the beginning of the idea. To avoid launching another failed social app development site, partner with an organization with experience in utility growth and enterprise sense.
