Ello Assures It Won’t Sell Ads (But That Doesn’t Mean It Won’t Make Money)

11-week old social network turns into public benefit corporation

Buzzy social network Ello—which prides itself on the fact that it doesn't sell ads or user data—reiterated its dedication to the cause on Thursday.

In an email to users, the site's founders explained that it changed the designation of the company to a Public Benefit Corporation (PBC), which means it is a for-profit organization with a purpose of societal improvement.

To keep the PBC label, Ello must abide by the three rules below.

1. It will never make money from selling advertising.

2. It will never make money from selling user data.

3. If the company is acquired, the new owners have to abide by rules one and two.

However, that doesn't mean that the network won’t make money.

As Ello told Adweek in September, it never planned to derive its revenue from ad dollars. Instead it has an internal store that allows users to add features to their profiles for a small fee. So, the reassurance that Ello will stay true to its principles is nice and a great way to drum up publicity for the 11-week old social network, but business is staying exactly the same. 

Publish date: October 24, 2014 https://stage.adweek.com/digital/ello-assures-it-wont-sell-ads-doesnt-mean-it-wont-make-money-161016/ © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT