Social Networking + Stocks

Take stock picking and investment advice, throw in a social networking base and you have an extremely useful community. This is one of the best social networking niches I have seen yet, not only for its topic but for the profitability potential. Currently there are two players that I know of, SocialPicks.com and FeelingBullish.com. Both are in private alpha but coming along nicely.

Between the two, I think SocialPicks is the clear winner for right now. Their design is very clean and appealing, and the navigation was relatively simple to use. You are able to track a stock that you actually bought, or add it to your watch list. There are places for you to comment and analyze on various stocks, which makes for a ton of user generated content. I’m also a fan of their simplified profiles. Many vertical social networks waste their time on allowing members to enter elaborate profile information. People will do that on large sites such as Myspace and Facebook. Niche social networks should have profiles that are built on a users actions throughout the site, which is exactly what Social Picks does. A SocialPicks profile features the stocks you have picked, added to watch list, posts/comments you have made, and your saved news.

In addition they have focused on the unique content generated through the site. For example, when viewing a stock they give you just enough outside information such as its current price, performance for the day, and a simple chart. But they focus on everything that people are saying and doing on the site related to that stock. If you want more outside info they have quick links to yahoo and google finance.
One thing I would like to see from Social Picks is a “hot” list. While I can already get what the most recent picks, best performing picks of all time, and most popular picks of all time are I would rather see what is currently hot (or not for that matter). In addition, a widget for my blog, or other social networking profile would come in handy.

FeelingBullish takes a little different approach. Instead of being able to add to the stocks that you have bought and sold, you rate the stocks as either buy, sell, hold, etc. It is much more focused on current trends. A great feature of FB is their graphical representation of all the data. It allows for quick summarization, and makes for an easy read. Another feature FB has that SocialPicks doesn’t, is a forum for its members. However I think SocialPicks doesn’t necessarily need one.

Unfortunately FB is lacking quite heavily in features. There is much more useful interaction on SocialPicks that would have an impact on my investing options. In addition FB needs to work on its design and navigation and most importantly, eliminate the long signup process. There is nothing more deterring then asking me to send invitation emails to my friends even before I’ve seen the site.

Like I previously stated I think this niche has a ton of potential. Besides advertising, there are a couple other really profitable routes that these sites could take. One possibility would be the option of a premium membership at a low monthly cost that could offer more features such as robust charts and statistical information. But another option which could be extremely profitable would be to hook up with an online trading company such as Ameritrade or eTrade and allow people to trade directly from the site while taking a referral fee or commission on every trade executed.

I look forward to seeing where this space heads in the future. Good luck to both sites!

[tags]Social Networking, Social Network, Stocks, Investing, SocialPicks, FeelingBullish, Niche, Vertical Social Network, Brian Balfour[/tags]