Social Networking and the Economy - Did they converge?

While doing research this last week in preparation for the beta user-side launch of fondalo on Monday, April 17th, I started thinking about the economy. To be more accurate, I was considering how economic down-turns and more specifically significant recessions effect consumer behaviors. We all know how bad things are. Just turn on the television or radio in the car and you will hear all about the sky falling on us.

Typically, negative economic times have tended to foster a back to basics mentality within the population. Friends, family and watching expenses start again playing a larger roll in the average persons life. Priorities begin to take on new meaning as a more simplified and cost effective way of life takes precedence over keeping up with the Jones'.

As I began to ponder this and thinking back to past economic times and how the above rang true for me personally growing up, I also compared it with my current situation. New 6 week old child, start-up getting ready to launch our beta system tomorrow. Things are really coming into perspective.

As my attention migrated back to my research I decided to check some of the most recent numbers related to social networking sites and how they coincided with the economic news we are all being bombarded with.

As this recent compete.com diagram of Facebook, MySpace and Twitter sessions per month seems to indicate, users are spending more time getting socially connected, and the trend seemingly increases as the conditions worsened.

Knowing that MySpace has a younger demographic then the other two, might be a reason for the less obvious upward curve, however clearly there seems to be a trend coinciding with the latest economic crisis. Whether this trend continues as the conditions continue to deteriorate or if more data showing possible connections to a higher percentage of people being out of work remains to be seen.

The point is, people do seem to be getting back to basics similarly to the great depression, where a high point of family and friend connections were very strong. Albeit, there was no internet back then, but the basic premise of family staying together, spending more time, socially integrating, certainly held true.

Using the information we just uncovered and processing it forward to other areas, we can potentially make some additional discoveries. I can't remember the last time I watched the news and did not see a story of a family that is having to change their buying habits, cut costs or go without. We all either know of or are experiencing these same scenarios being played out all around us. What does it mean and how will it effect social networking further?

Back to basics for consumers and businesses alike in this economy is making smart financial decisions. Buying things you need or want that have value and exceptional prices. In general, getting more for your money. That's where fondalo comes in.

fondalo combines the need for buying power that we all need right now with the ability to socially connect in the process. One of the foundations of fondalo is human nature. People hang around people like them. People relate to people like them. I know this is not an absolute statement, but you will find more similarities with your friends and family then you will with a perfect stranger on the street.

Therefore, leveraging your social networking with a collaborative environment controlled by users pulls together the two biggest news items of the day. The rise of social networking and the rapidly declining economy.