Five Lessons For VARs From The Facebook Fiasco

Facebook CEO Mark Zuckerberg apologized for the Beacon episode in a blog on Wednesday. Furthermore Zuckerberg informed users that Beacon has been changed to an opt in system. What's more he said, Facebook Wednesday released a privacy control to turn off Beacon completely. The mistep comes only six weeks after Microsoft invested $240 million for a 1.6 percent stake in Facebook.

Here are five lessons for solution providers counseling business-to-business clients on the use of social networking technology.

1. Never Share User Data Unless You Provide A Clear Opt In.

By all accounts, Facebook could have avoided some embarrassing backpeddling if it gave users a clear opt in that would only have shared user information with advertisers if users agreed to opt in. Facebook, in effect, spammed its millions of users with its opt out policy. Give Facebook credit for apologizing and making the change to require a clear opt in before any personal data is passed on. This is by far the most important lesson for any and all solution providers working with clients to build business-to-business portals.

2. Provide A Detailed List Of Benefits For Users That Opt In.

What better way to get someone to opt in than with some clear benefits that result in no nonsense savings for those that do opt in. For example, if you're building a business-to-business portal for a local kitchen remodeling company that is interested in sharing personal data with other local businesses such as a kitchen appliance retailer or a specialty lighting retailer, why not offer those that opt in 10 percent discounts on purchases made as a result of sharing the data. Or how about membership in a frequent local buyer's club with its own credit card that results in a five percent cash back benefit at the end of each year. The point is if there are some clear and present benefits it's a lot easier to get users to opt in.

3. Always Do Exhaustive Testing Before Going Live With New Technology.

Do beta testing, more beta testing, and then more beta testing. Even the most basic of beta tests would clearly have flagged the problem of users being outraged and alienated by the sharing of their personal data. In this day and age, there is too much pressure by any and all companies to go live rather than get it done right. Next time you're thinking about rushing a new social networking feature out without due diligence think about the 50,000 Facebook users that signed an online Moveon.org petition blasting the new Beacon service as an invasion of their privacy.

4. Caveat Emptor When It Comes To Social Networking Sites.

No matter how many times it happens, we never seem to learn. Be very, very careful what data you put on a social networking site. And remember social networking sites for businesses are being built at a blazing rate. Ultimately you have to counsel your clients that any and all data they put into a business-to-business portal could find its way into someone else's hands. It is these types of public flameouts that is going to result in more and more companies keeping their data on private wide area networks rather than on the internet via software as a service platforms likes Salesforce.com.

5. Establish A Clear Printed Privacy Policy That Is Placed As A Prominent Link On Your Website.

There is no excuse for any and all solution providers and their clients not to have a clear privacy policy on their Website that guarantees user data will not be shared without the express consent of the client. It is just smart business. If you don't have that printed policy, get it done today and post it tomorrow. It will buy you a lot of good will from clients that want to make sure they are dealing with a best in class solution provider.