Most social networks out there, such as Facebook, tend to use the data of its users for advertising purposes. However, with Ello, that’s not the case, as the up-and-coming site has promised never to get to that point. In fact, it got to the point where it turned away from making money via a general revenue source, in favor of getting funds another way.
The website has managed to secure approximately $5.5 million in financing through the Foundry Group, Bullet Time Ventures and Freshtracks Capital, according to Fast Company. This will certainly go a long way in keeping most of it ad-free, even though it will still charge for certain services on the app, such as add-ons and other modifications. Ello already has a million people signed up, ath several million more on the waiting list.
“Would people like a less intrusive social network than Facebook Of course they would,” said Harvey Business School professor John Deighton. “Do they want it enough to pay for it Probably not, as long as there is a giant global community (Facebook) with a billion monthly active members, including that high school exchange student who they lost touch with when they went back to Bolivia. And that one’s free.”
With the funding, Ello hopes to utilize better product development, including a back-end infrastructure capable of carrying a stronger user base, which the site is clearly getting. The site has managed to gain 40,000 to 50,000 new invites per hour, according to Re/Code, and the servers are getting a little tougher to maintain.
One thing it will maintain, though, is that it won’t use data for its own selling purposes. “This company will never have ads and will never sell user data,” said CEO Paul Budnitz. “We’ve basically enshrined, in the most powerful legal way possible, our mission into the company.”
Those interested in learning more about Ello, as well as what it has to offer its users, can visit the site here.