Michael Birch, Bebo



The social networking pioneer on growing an online community and how he valued his business before its £420m sale.

This is famous entrepreneur Michael Birch, whose experience with computer programming led him to set up Bebo in 2005 with wife Xochi. The site went on to attract over 40 million users, making it one of the most popular social networking sites on the internet, and was sold to AOL in March 2008 for a reported £420m. Before Bebo, Birch had set up five businesses, including hugely successful BirthdayAlarm.com and Ringo.com. In 2008 Michael Birch invested in and joined the board of Mystore.com.

What motivates entrepreneurs? Michael Birch answers this question and talks about the challenges of choosing a domain name and the misconception that social networking websites are not easily profitable. He also speaks of the marketing strategy taken by Bebo, and how venture capital can be beneficial for small businesses as it gives a form of external validation of success for other potential investors.

Bebo grew from the attic of the Birch house and Michael points out the advantages of having an in house ad sales team and how he selected his target audience by basing the function of the business on his own wants. The issue of user protection is also touched on, as with any social networking site behaviour must be monitored and controlled within reason. Find out what tools Bebo uses to do so, including complaint tools. The structure of the company is something that Birch feels strongly about and having an open flat hierarchy is a feature that has led to the company being a success.

Bebo is now one of the leading social networking sites across the globe and Michael Birch is able to offer some expert advice in this entrepreneur interview.

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