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Zurker – The Social Network That You Can Own

written by John Chow on February 7, 2012

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Unless you’ve been hiding on the dark side of the moon, you know about Facebook’s IPO filing on Wednesday last week. Facebook shares are expected to sell like dim sum, and the latest figures from Wall Street put the company’s valuation at $94 billion. That’s some serious money!

Mark Zuckerberg, the founder, will come out of the IPO with a net worth of about $24 billion, and he won’t be the only one to gain billions.

Clearly, being the top dog in the social network niche is not a bad way to make money online. Not surprisingly, a number of challengers have come along and tried to unseat Facebook. You know about Buzz and Google+. Maybe you also remember Unthink and their sassy video. Despite causing a media stir, six months later the star of the clip remains firmly entrenched on Facebook, and Unthink barely gets any traffic.

Despite its anti-Facebook message, Unthink was based on exactly the same business model as Facebook: get venture capital funding ($2.5 million to be precise), use the funding to grow a userbase, and leverage that userbase into ad dollars.

In other words, business as usual.

ZurkerIf you’re competing with Facebook, business as usual doesn’t cut the mustard. You’ll need something totally fresh – a brand new, innovative approach. This is why I’m keeping an eye on a brash new startup called Zurker. These guys received no funding at all from VC’s. All their funding comes from their members who invest small amounts, typically less than $100. In exchange, the members get equity in the form of “virtual shares” or vShares.

Members can also gain vShares by referring their friends to the project, and that is pretty clever.

Given the opportunity to own a slice of Facebook in 2004, who wouldn’t jump at the chance? It’s too late for that, but plenty of Zurker’s members seem to be buying the proposition that Zurker could become the next Facebook, and are enthusiastically evangelizing Zurker’s benefits on their blogs in an effort to amass more vShares. The energy from the member-owners has translated into growth and it shows in their traffic graph. But can a small startup, coming out of nowhere, seriously challenge a $94 billion behemoth?

Right now, that’s unlikely. Zurker has no mobile app, no web widgets, and no developer API. The interface is unique and smart, but a little clunky and unsophisticated. Zurker still has less than 5,000 members worldwide.

But Zurker founders – they call themselves custodians – make an intriguing point: back in 2004, MySpace was the dominant social network, and Facebook was an unknown little startup that came out of nowhere. Facebook had a deviously clever strategy for growth, namely exclusivity: Facebook became tres chic and desirable by restricting access to the elite at Harvard only, then to the Ivy League, then to US colleges in general, followed by US high schools and finally the masses. Zurker, meanwhile, have a completely different deviously clever strategy of their own: give members equity.

Zurker came out of private alpha testing on January 22, 2012. You still need an invite to get in, so here’s one from me.

I don’t know if these guys will really follow through and eat Facebook’s lunch. But if they do, remember you read it about it here first.

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{ 25 comments }

Oscar Gonzalez February 7, 2012 at 9:16 am

LOL “Facebook shares are expected to sell like dim sum” – Thanks for the info on Zurker. Will check it out. Unthink had promise, but had a terrible premise and a bad name. “Unthink”? WTF. and their pitch was how they were “not like facebook” but yet they were… and in that, they failed to show how they did anything better than FB.

Andrea Hypno February 7, 2012 at 10:07 am

Very interesting John. I’m one of those who think that Facebook will go the way of MySpace as well as Google will go the way of Yahoo, at the end it’s pretty clear that FB only goal is to make money for the founder and not much else. Imho they are not at all interested in providing a service to people, and their usefulness is completely to be demonstrated beside being an enormous time-sucker. I mean a lot of people talks about making money with Facebook but from what I’ve understood up to now the only one who is really making money with Facebook is Zuckerberg. Plus a couple of others maybe.

Thanks for the hint and now I’ll go checking Zurker. :)

Pawel Reszka February 7, 2012 at 11:20 am

LOL John, I signed up but why do I have a feeling they are going to fail like Agloco? ;)

John Chow February 7, 2012 at 11:40 am

@Pawel Reszka Before for ever startup that hit it big like Facebook, 100′s of other fail? :)

Pawel Reszka February 7, 2012 at 1:59 pm

@John Chow True, but whenever there is a monetary incentive for users to join it usually collapses. Time will tell. I guess you never know ….what if right?

John Chow February 7, 2012 at 2:30 pm

@Pawel Reszka That’s right. You never know. Since it won’t cost anything to join, it can’t hurt.

BradNordstrom February 7, 2012 at 4:31 pm

Zurker feels to me like it will be a great social network when it is released to the public in April 2012.Good article I have to because many people don’t write about this.Thumbs Up!

Thanks For Sharing John,

Bradley Nordstrom

Dzulhelmee February 7, 2012 at 5:26 pm

Great ! Certainly will give it a try. I accept your invitation John. Thank you.

Kenny Boger February 7, 2012 at 10:11 pm

another new competitor for facebook, not bad for a healthy competition. going to try out Zurker!

VCBeat February 7, 2012 at 10:14 pm

A really fresh concept!

KeithOng February 8, 2012 at 12:27 am

why is the domain name ending with .net? i dun trust domain names that end with this. sorry.

Property Marbella February 8, 2012 at 12:41 am

Reminds me a little about the idea 1 million pixes for $ 1, which lots of different people tried to copy after their success. It takes a lot of millions dollar of today to be successful with a large socia media website. it is not enough with $ 100 from a few thousand members.

Sharon Fiberesima February 8, 2012 at 1:21 am

Interesting. Can’t wait to try them out. Thanks foe the invite @John Chow

iPhone Wallpapers February 8, 2012 at 9:08 am

I have no idea about it. Thanks for the info!!

heatherdavis1474 February 8, 2012 at 10:43 am

“Food product choice is overwhelming as well as TV commercials and print advertisements that want to sell their food products. Who to believe? How to choose? Do you trust what is shown to you? Obviously, it’s up to each of us to decide what we eat but if we’re constantly bombarded with images of food every time we pick up a magazine then we’re going to be swayed in what we choose But http://www.gourmandia.com is the only one site that really gives the satisfaction of parent like me. I trust this site and as well other sites that are related on Gourmandia.com, one of this are: http://www.everything-bread.com http://www.coffeefashion.com http://www.learnaboutpizza.com http://www.everything-cake.com http://www.milkdelight.com http://www.fishlogy.com http://www.soupssimo.com http://www.aboutpeas.com http://www.bananapedia.com http://www.wikichicken.com http://www.allthemeat.com http://www.everything-corn.com http://www.ibeefrecipes.com http://www.everthinglemon.com http://www.thesaladsite.com http://www.pepperecipes.com http://www.knowallwines.com http://www.chocolarious.com http://www.gourmetrecipe.com

fas February 8, 2012 at 9:44 pm

I never heard about them till now.

Enstine Muki February 9, 2012 at 9:10 am

Sure! Me too I’m jumping to try them out. Looks like the next big thing

locris February 10, 2012 at 4:41 am

ZURKER UK currently has only 486 members: http://tinyurl.com/about-ZURKER

carmengreeneonline February 11, 2012 at 7:22 pm

Curious… another one to battle out Facebook and Google+. Will try this out =)

AjarnDonald February 14, 2012 at 1:35 am

I believe Zurker is going to end the year 2012 with Facebook and Mark Zuckerberg scratching their head, thinking about their new strategy for 2013 to make up for lost territory:)

http://www.zurker.net/i-4620-qzsuuhbnsz

locris February 14, 2012 at 6:28 pm

Find out what it’s all about:

http://tinyurl.com/about-ZURKER

prabhat February 19, 2012 at 10:06 am

join zurker by visiting this link because zurker accepts only through referal program

http://www.zurker.in/i-7001-weiuwrwsqs

botipton February 21, 2012 at 8:44 am

John it is like you say. If it works this will be very good. If it doesn’t it does not cost anything but a few minutes to find out. I am looking forward to following Zurker to see how it does.

stani456 March 27, 2012 at 8:20 pm

zurker so far is a little awkward, but it has enormous potential for ordinary people who want to earn
http://www.zurker.eu/i-14375-eigiaradpq

not chow March 30, 2012 at 11:38 am

Zurker is not unique and is not likely to be a success for as long as the focus is on vshares. Owning and earning them is first and foremost. social networking comes a very distant second.