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This is a valid point. A year ago, it could have been countered with the fact that niche social networks may have been able to include applications targeted towards their niche audience. However, with the open application platforms, it's now possible to create bespoke communities with any features you want by using applications, and these can even be cross platform (e.g. allowing Facebook app users to interact with MySpace app users).
This is something very relevant, as it is now much easier and cheaper for brands to create custom communities using applications that trying to get users to sign up to whole new social networks.
Josh
If you look at Facebook or MySpace as a monolith, then you are making a strategic mistake. People don't join any of these large social networking sites to interact with a huge number of people, but rather a narrow social network of friends, colleagues, or others with whom they share some tie.
Ultimately, people must choose to participate in the social network(s) that have the most appeal and value to them, regardless of whether they exist on one of the broad platforms or on a more narrowly tailored one.
Also, keep in mind that social networking need not consume a lot of time in the aggregate. Some social networks may encourage constant participation with lots of updates, but others may be used on a much more infrequent basis while still providing value. Think of it as the difference between Twitter (which is frequent and ongoing) versus LinkedIn (which is sporadic and targeted).
See my article on Legal Intellects:
http://tinyurl.com/3dab6w
The large generic social networks like Facebook and Myspace are great for keeping in touch with friends, but small social networks offer much more - people just like you who share your same passions.
Qnahealth is a new social network for health related information and support. It's designed to be friendly and easy to use and is focused around users asking and answering questions and sharing their experiences and knowledge.
We invite everyone to take a look as they explore their online health information options.
We welcome bloggers!