"Exactly!
Now, I have to confess that this is probably a chicken and egg problem.
If we had no silos, there would be ad-less alternatives (with ad-based ones too). The ad business model also strongly pushes toward a winer-takes all model (the larger the audience, the higher larger the revenue per user it seems)."
- Julien
"Interesting. As a matter of facts, I have been questionning a lot of my friends when they told me that they're adding a "social network" to their perfectly-fine-otherwise application... in search for higher valuation.
I do not know whether you are right or whether the nlog(n) is right... BUT, I am convinced that most of the time the value of a network is overstated, because networks are not evenly distributed: they are actually more like clusters and the value is probably the maximum value of any given cluster.
In other words, most of my friend's friends are friend with my friend's friend... and once all of them are in the network, adding a friend of a friend of a friend does not add much value to the network."
- Julien