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October 01, 2007
The virtual velvet rope
By Britany Larsen
Social networking is built around the idea that everyone is welcome. Sites like MySpace and Facebook are places for every “average Joe” to put themselves on display and enjoy some sort of notoriety and fame.
However some new social networks are changing that.
Built around exclusivity, and providing a safe haven for its rich, beautiful, or famous users, sites like Diamond Lounge, ModelsHotel, and ASMALLWORLD require lengthy application and verification processes (at ModelsHotel, would-be members need to provide agent phone numbers and recent bookings), and charges of up to $60 per month. Every applicant is personally reviewed and many are denied.
ASMALLWORLD has grown to about 150,000 registered users in its four-year existence. The crowd of young jetsetters is 60 percent European and 20 percent American, and the average age is 32. The founder of ModelsHotel is only 25, already seeking 1.5 million in venture capital and commanding $10,000 for a banner ad. Diamond lounge is still in launch mode, but is hoping to attract only the upper echelon of society.
The sites are too exclusive to receive the attention necessary for an advertising-based business model, and are instead attracting luxury marketers who utilize their high-profile members as sponsors.
According to the Wall Street Journal, pricey-denim makers Diesel worked with ModelsHotel during Fashion Week by giving out free “skinny” jeans to models so that they would be seen around town in the brand while on auditions.
These exclusive social networks have changed the way that luxury brands traditionally connect with "the beautiful people," and have created a virtual velvet rope for the rest of us.
Posted by Alicia Dorset at October 1, 2007 04:05 PM
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Comments
This is defitiely an interesting development. I would have liked some more analysis though. As it stands whatever impact these sites are having is unclear.
You say there is a "virtual velvet rope" but while this may be a new phenomenon in cyberspace, it doesn't appear to change anything of significance to me.
There have always been exclusive clubs and the "luxury brands" have always connected with the "beautiful people" anyway, whether they are handing out jeans or sending out invitations for glamorous events.
Is the article non-committal because the subject is a non-event?
Posted by: cerebralmum at October 1, 2007 06:32 PM
Thank you, cerebralmum, for reading. I appreciate your comment and feedback. This post was meant to be purely informational. I completely agree with you that the luxury brands and exclusive clubs have always courted the “beautiful people” to promote and maintain that image. It’s interesting to me that this phenomenon, which has been taking place offline for a long time, is now taking place online. I.e. people are being refused on the basis of looks, profession, connections - things that never before mattered for admittance into an online social network. We'll have to wait and see if these sites have staying power to determine the impact for marketers in the future.
Posted by: Britany at October 3, 2007 01:12 PM
