smallbusiness.co.uk: Helping your business think big

Until now, social networking has often sat awkwardly with work, with bosses fretting about hours wasted on Facebook. The question is, have they got anything to offer business owners in terms of networking opportunities.

Eric Archambeau, partner at VC firm Wellington and co-founder of the business that became Yahoo Groups, believes that networking websites have a lot to offer the working world – and vice-versa.

‘There are limits to the number of times people will return to casual social networks, and their level of activity tends to taper off over time,’ he states. ‘The same is not true of professional networks, where you have goals you are trying to achieve, such as locating new partners, hiring staff, or finding out more about your counterpart in a deal.’

It’s a view that seems vindicated by Facebook’s five per cent drop in UK users between December and January this year, its first fall ever, according to marketing research company Nielsen.

But Archambeau is far from dismissive of Facebook and its ilk. He reckons the smart money is on ventures that seamlessly combine social and professional networks in a way that maintains users’ privacy.

‘I think people are going to want to have separation between their private and professional lives,’ he argues. ‘If you go on a skiing trip during the weekend, you don’t necessarily want to bring the entire office with you, or have your boss and your boss’s boss look at the photos on Monday.’

Wellington’s portfolio company Amiando is one venture bridging the social/professional divide. It provides a platform compatible with existing social networks that allows its users to organise events both inside and outside work simultaneously – but without sharing all the details.

‘The next generation of activity in social networks will bring in features that vastly increase their usefulness and stickiness,’ Archambeau concludes. Watch this space.

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