MocoSpace’s Winning Formula for Feature-Phone Social Networking

5/20/09Follow @wroush

MocoSpace is one of Boston’s hidden technology success stories. The four-year-old startup, located on the second floor of a classic old office building near Boston’s South Station, has built what is probably the world’s largest standalone social network for mobile phone owners (that is, one that isn’t merely the mobile counterpart of a primarily Web-based community like MySpace or Facebook). The MocoSpace community passed the 6-million-member mark in March—making it more than three times the size it was when I first wrote about the venture-funded startup in January 2008. And it’s accomplished all this by focusing on services for owners of plain-vanilla “feature phones,” at a time when expensive, big-screened smartphones like the Apple iPhone, Android phones like T-Mobile’s G1, and Blackberry devices have been getting all of the technology press’s attention.

I visited MocoSpace in April to connect in person with its co-founders, Jamie Hall and Justin Siegel, and to find out how the company keeps growing so quickly. Its refusal to bow to technological fashion, sticking instead to its core audience of young feature phone owners, is probably part of the answer. About 80 percent of MocoSpace members are younger than 30, according to vice president of marketing Jim Gregoire; 50 percent are under 24, and a quarter are teens.

It’s a group of mobile users who can’t necessarily afford the latest, greatest smartphones—and who may not even own computers—but who are nonetheless highly social, and who want to interact with peers around the corner or across the globe. MocoSpace serves them through a combination of, on the one hand, classic social-networking features like profiles, comments, friend lists, and chat, and on the other, digital content like photos, music, and videos, both user-generated and professional. (In fact, the company recently launched a mobile music store, with special promotions by artists like rapper Rick Ross and labels like Def Jam.)

Jamie Hall (left), CTO of MocoSpace, and Justin Siegel, CEOAnd the free, ad-supported service is delivered entirely through the Web browsers now found on every mobile phone. Hall (the company’s chief technology officer) and Siegel (its CEO) have deliberately avoided creating specialized mobile applications or building the direct relationships with wireless carriers that could get those apps onto the carriers’ top-level menus or “decks,” relying instead on basic mobile Web technologies and on word-of-mouth to bring mobile users to its site.

As big as it is, MocoSpace still has plenty of room to grow: the company estimates that as many as 30 to 40 million feature-phone owners are under age 30 and have access to data plans. In my conversation with Hall and Siegel, an edited version of which appears below, I asked about how the company optimizes social-networking services for feature phones, how the mobile advertising scene is evolving, and what sorts of new features might be coming down the road. (Don’t be too surprised if MocoSpace eventually gives in to fashion and builds a dedicated iPhone app—as the Apple device becomes more ubiquitous, Hall and Siegel say they want to keep serving the core audience of mobile-addicted young people.)

Xconomy: What metrics do you guys use to measure your growth—and how are you doing?

Justin Siegel: The 6 million users; the page views we’re generating; the fact that when you look at the data guys like AOL or Opera or OpenWave have put out, we’re one of the top destinations on mobile phones in North America. That’s been awesome to see. We’re mentioned in the same breath, consistently, with MySpace and Facebook in the mobile world. It’s validating our hypothesis, which is that there is a market and an opportunity for focusing on feature phones.

X: What type of marketing have you done? I’ve never seen an ad for MocoSpace.

JS: It’s pretty much all word of mouth. In the past we’ve done some marketing and advertising, but nothing in the past year or so. Ultimately, the business model relies on viral growth and word of mouth. That’s certainly been sufficient to get us to where we are.

X: Feature phones come in so many different forms, from so many carriers. How do you overcome that fragmentation to do things like streaming video?

JS: About a third of [feature phone] handsets can stream video, and about two thirds can download video. For some carriers, like Verizon, you have to be an on-deck video partner and anything that’s off-deck, they block. Sprint is the same. AT&T and T-Mobile are … Next Page »

Wade Roush is Xconomy's chief correspondent and editor of Xconomy San Francisco. You can subscribe to his Google Group or e-mail him at wroush@xconomy.com. Follow @wroush

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  • http://www.wirelesswarriorblog.com Marty Keene

    Love the comments about the way carriers work internally…so true and I worked for Vodafone and its true!! :-)

    Still like to know if Moco will go to a paid or premium user model at some point as just don’t think there is enough many in advertising…and users will pay for mobile services if you ask

    Marty

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  • Jake aka jdtwentysix, jaydee26, twentysix

    I have been a member at mocospace for three years, and while this review paints the picture of a youth orientated friendly site, I do not believe that to be the case.
    Firstly, when I first signed up there, a culture of anything goes seemed to exist, especially within the forums.
    Moco chatters called it “roasting” and long drawn out chat fights were the order of the day.
    I have always been a forum chatter more than a blogger, and I was attracted to the site for it’s forums primarily. At first I chatted in General, but later I became a regular in the life problems forum.
    As a gay man, I often felt persecuted, but the friends I had made kept me coming back. That is no longer the case.
    The people in life problems forum form cliques, and target individual members for fun. That has been going on for a long time. I am a popular target, and whether I am online there or not, you will never visit that forum without seeing people chatting about me nastily, posting my photo’s that they stole from my accounts there, and impersonating me. I get called faggot everytime I log in. The word is not censored.
    The report system is a joke.
    If a number of people dislike you and report you, you’ll be deleted no matter how many times you report them back.
    To justin and jamie, it’s all about the numbers.
    And while I am on the subject of numbers, that 6 million users figure is a blatant misrepresentation of the truth. When a culture of “roasting” “trolling” and “fake profile making” exists so obviously there, it should be factored in. Precious few mocospace users retain just a single account. There are currently around 13 fake profiles there that were signed up purely to impersonate me.
    Additionally, every time the life problems group gets me deleted they steal my old profile and impersonate me. I would say that mocospace would be lucky to have one million genuine active users, the rest are fake profiles.
    As evidenced by the low participation in genuine forum debates. Ask any long term user and they will tell you the same thing. Mocospace user numbers are dwindling, not growing.
    The personal information posted there is also worrying. I get deleted habitually, but the fake profiles of me do not. Whatever information I have ever divulged in the forum is used against me, and I have had certain people there “investigate” me, posting photo’s, my full name, and other information they found about me off-site, with absolutely no ramifications.
    You would think if you reported a fake profile that was using your photo, your name, and pretending to be you it would be deleted, but sadly that isn’t the case.
    Admin only reacts to harassment if they receive multiple reports from multiple IP addresses. It’s very biased against minorities who are more likely to be targeted in the first place.
    Every time I have been deleted I have attempted to contact Justin and Jamie directly with these issues, and been ignored. I think, and its just my opinion, that unless you are an attractive female they are just not interested in protecting your civil liberties on mocospace.
    I am very angry about all of this, obviously. But I am not the only one. My friends there are leaving in droves. At this rate I predict mocospace will not last the distance. The only people who manage to keep an account are bullies and internet trolls. They act as an angry mob and only then do J&J or admin do anything.
    At that point they usually delete the victim of the harassment because it’s all about the numbers.
    Lastly, they have recently introduced a moco gold feature, where users are encouraged to spend real dollars on “gold” which can then be used to activate a group of features. The features include an option to see who is viewing your profile, and an option to be in invisible or busy status when online. Both these features appeal to users who are being harassed by other chatters, for obvious reasons. I have purchased amounts of gold to access these features, only to log in the next day and find my account deleted. On one such account, I did not even USE that username in the forum, much less do anything that conflicted with their terms and conditions. Yet a group of users still managed to report it and get it deleted. It seems like a money-making scheme to me, and a dishonest one at that. They shouldn’t sell people moco gold if they are going to delete their accounts without so much as a warning a few days later.

  • Jake aka jdtwentysix, jaydee26, twentysix

    I forgot to add, and I think it’s interesting to note, that the majority of the people reporting me were older than I am. Their ages range from 35 – 50. Additionally, there are to many scam artists, including one 47 yo South African woman I have personally witnessed phishing in Life Problems forum, and receiving jewellry and other stolen goods as a result. Youth orientated? I think not. But scam orientated? Most definitely. On my first account, which I put a lot of effort into keeping updated, rarely a day went by when I did not receive inboxes from nigerian princesses and the like, wanting me to transfer goods and money mule style. They include an off-site yahoo email usually, and god only knows how many mocospace users they have taken in. Yet when I report those profiles not even THOSE get deleted.

  • Dustin

    The site is a joke it’s not real

  • Lindsay

    I think this is horrible because someone is pretending to be me on this stupid network. You people should put up security measures! I can’t even delete the profile because I don’t have a password…
    You better fix it

  • Lindsay

    I will definately go to press with this if it is not sorted out soon. It is disturbing, the information they have about me. I want no part in this digusting site. I’ve read other comments about this site and am not impressed neither comforted. It seems nothing gets done about the fake profiles. This is going public

  • Aries

    This site is great as far as games, forums and the chat rooms but its so nerve wrecking when it comes to cyber bullying…Justin and Jamie do not investigate the reports they been sent…instead they receive and determine who they want to have their profiles…I have encountered having false reports in me, being harassed daily, having my profile hacked into, my personal information in chat rooms, threats, etc….its utterly ridiculous and and JnJ need to actually look unto reports about online bullying…they are so behind that this site do not take this matter seriously but they have no problem banning the victims pages and rewarding the bullies by staying online no matter how many times they get reported…I wouldn’t recommend this site to no one.