Facebook and MySpace: International expansion requires methodically re-creating the network effect

Implications: Google's Orkut, a complete failure in the States, has experienced tremendous success in Brazil and in some Asian countries, as has the social shopping sites like OSOYU and ShopStyle in the UK.  Facebook and MySpace can create an international "network effect" as well, but, to do so, they will have to be very methodical in seeding the environment with users and addressing cultural differences.

Analysis: Social networking has huge potential outside of the U.S.  Google's Orkut, a complete failure in the States, has experienced tremendous success in Brazil and in some Asian countries.  Social shopping, as through OSOYU or ShopStyle, has proliferated in England.  The "network effect," the ability of the Internet to quickly extend its reach from one to many, is not merely a U.S. phenomena.

However, it is certainly true that the prime social networking properties, Facebook and MySpace, will not just occur because they have built it abroad.  Though this may seem obvious, in order for a network to expand, it needs users, local users.  Orkut proliferated on foreign soil because a base of users in that country gave it wings.  This occurred rather organically instead of the Google manipulating its users.

Can social networks create fertile ground for these users to interact?  Yes, but it isn't easy.  They can absolutely deliver language- and custom-based verbiage and applications in order to make these individuals feel comfortable.  They can deliver content specifically appropriate to those users.  But, most of all, they need to deliver users in order for the network effect to begin.  There are creative means to seed the country with users, via advertising, blog outreach, Beta programs, or promotions.

Germany does present unique challenges, largely due to its culture.  Germans tend to be more direct, as opposed to more chatty Americans or Brits.  Germans interact differently with online payments, shunning credit cards.  It is debatable whether Germans would be as "social" online.

It certainly is possible, but international expansion for social networks requires more thought than simple brand expansion.