Information Technology Reference
In-Depth Information
Case Analysis 3.3
It's A Small World for the wealthy online
A Small World, the online social network founded by Erik Wacthmeister in New
York in 2004, is the only online community dedicated to the world's wealthy
and elite. With members ranging from business moguls like Ivanka Trump and
Hiro Nishida, actors and artists like Diane Kruger and Joshua Bell, designers
and writers like Sang A and Caprice Cane, socialites and philanthropists like
Naomi Campbell and Sanjay Rawal, as well as sportsmen like Mark Beaumont
and Johan Nilson, A Small World's member list reads like a roll call of a first-
class-only flight.
The website, which unites more than 300,000 members from every world
region, has used two factors to craft its very essence - trust and community.
Membership is upon invitation by another member if they have been given
the privilege of inviting others (as decided by the managers of the website).
Members are encouraged to participate in forums which range from aviation,
sailing, fashion, style, beauty, motoring and so on, most of which feature pas-
sionate conversations, debates and events. People may also congregate for
business purposes including participating in mini-clubs for investments, real
estate and business modeling. The website has strived to overcome the issue
of privacy and intrusion - one of the fundamental concerns of wealthy people
online. It is governed by a strict code of conduct, which results in expulsion if
not adhered to. Members may only connect to people they know and those
that wish to get in touch with people they don't know have to follow the “net-
work thread” which will enable them to identify people in their network or the
networks of those in their network to make the necessary introductions. Pretty
tough huh? Wait until you discover also that if you attempt to add someone to
your network and the person declines, you will be expelled from the commu-
nity. Also, if someone happens to dismiss you from their network, you're out.
Rampantly emailing people who don't know you or haven't solicited your friend-
ship could also attract expulsion.
A Small World is, however, a healthy breeding ground for business advance-
ment, networking and entertainment. Investment capital of up to $10 million
has been raised on the business forums, properties worth $millions have been
bought and sold on the real-estate forums, sporting events tickets have been
exchanged on the sports forums and private jets have even been swapped on
the travel forums. Market research analysts have also found it to be a gold mine
for tracking the behavior of the wealthy while event organizers use the com-
munity to reach people at the top-end of the wealth spectrum. Several events
have also been organized exclusively for members by luxury brands like Moët &
Chandon and Mercedes Benz and, when Nelson Mandela celebrated his 90th
birthday in London, members had privileged places.
Since the wealthy are quite sensitive to privacy and personal information
access, but at the same time seek to connect and interact with like-minded
people, they are only likely to congregate on websites that they trust will both
protect them and add value to their online experience. A Small World fulfills
this. The online community enables connection with people within the same
level of accomplishment, maturity, income bracket, educational background
and international orientation. The average age of the members is 32 years,
their household income averages at $330,000 while 95 percent of them have
a university degree, 50 percent a masters degree and 90 percent are employed
with the other 10 percent ranging from business owners to philanthropists.
Their professional backgrounds range from finance, consulting, law, marketing,
