'Facebook for filthy rich' prospers despite bad economy
By
BY KEITH NIEBUHR St. Petersburg Times
Originally published 11:48 a.m., March 9, 2009
Updated 11:54 a.m., March 9, 2009
Posted on 03/09/2009 11:49:29 AM PDT by AreaMan
By
BY KEITH NIEBUHR St. Petersburg Times
Originally published 11:48 a.m., March 9, 2009
Updated 11:54 a.m., March 9, 2009
Bob Smith is hooked. He spends 10 hours a week online messaging his pals, shooting e-mails to new acquaintances and popping off about a variety of topics.
It makes him feel like a teenager — not a successful 57-year-old business executive. "I'm having a ball," he said.
Smith's Web site of choice, Affluence.org, is free, but don't fire up that computer just yet.
It's a tad exclusive.
Membership requires a verified net worth of at least $3 million or an annual household income of $300,000. If you don't qualify, there is one other way to join: convince at least five wealthy folks to vouch for you.
"It's Facebook for the filthy rich," said Palm Harbor's Scott Mitchell, the site's founder, president and chief executive officer.
Launched in September, Affluence.org reports more than 20,000 members (apparently, the economic downturn hasn't hit the yacht club scene just yet).
The site's members are chief executives, celebrities, investors, magazine publishers, philanthropists and socialites from around the world, Mitchell said. Rolling Stone co-founder Jann Wenner is among those with a profile, and Mitchell — who helped launch Rolling Stone's Web site — swears, "It's him."
The question is: Are all members legit?
"We do everything we can to make sure people are who they say they are," Mitchell said.
But, he confessed, "even if you talk to someone on the phone, you can't always verify it's him."
Prospective members are scrutinized via public record checks. Someone claiming to be George Clooney was rejected.
During signup, people must submit their name, birth date, gender, marital status, household income and household net worth. According to Mitchell, Affluence.org checks that information through multiple online data sources. If any red flags go up, applicants are asked to provide more information or get rejected.
Only one in 40 who apply is accepted, Mitchell said. Once in, members are screened regularly to verify they haven't fallen below the site's requirements.
Like many networking sites, Affluence.org has personality profiles, blogs, a lifestyle guide, forums, links to articles and polls. It also includes philanthropic information for those feeling generous.
The site is supported by advertising, which is secured by Halogen Network, an Internet advertising company. Halogen handpicked Affluence as a client because of "its rigorous screening and high-quality demographic," CEO Greg Shove said. Among its clients for the Web site are a company that rents private jets, a designer watch retailer and luxury travel agency.
Smith, a business consultant from Colorado, said he joined Affluence to broaden his knowledge about the world. He said he uses the site to make business connections and is active in group conversations, where things often get "zesty."
"It would have taken months to get this quality of contacts," Smith said. "I've been able to do it in weeks, if not days. I very quickly found out what everyone had in common; they're people who have already accomplished a lot and have nothing to prove. I feel like this thing is made for me."
Mitchell, 37, said he sank about $1 million of his own money into Affluence, which he describes as a "virtual country club."
A Chicago native, he once was a technology consultant for Arthur Andersen, the accounting firm, but later co-founded Tunes.com, through which he launched several Web sites (notably Rollingstone.com). After Tunes.com sold for $185 million in 2000, he moved to Florida to retire at 29.
"I realized I didn't fish and didn't boat and didn't golf," Mitchell said. "I ended up watching a lot of daytime television."
Bored, Mitchell got back into the game.
He said he helped launch the Home Shopping Network's HSN.com and started Kowabunga, an online marketing company. The latter went public in April. A month later, Mitchell founded the Palm Harbor-based Affluence Corp.
Although he declined to reveal his net worth, he and his wife Kristi paid about $2.6 million for their Palm Harbor home.
John Hobbs of Tampa, CEO of Athletes' Oasis, heard about Affluence.org from Mitchell at a meeting for area executives. He first used the site to connect a friend who had charity status with a philanthropist. Now, he's using it to make contacts for a green energy company he hopes to launch.
"I usually shop around for people I want to connect with," Hobbs said.
Alexa.com, which tracks Internet traffic, lists Affluence.org as having a users rank of 41,613 (as of March 4) among all Web sites. By comparison, www.robbreport.com, which also caters to the wealthy, ranks 131,612th.
Affluence.org accepts about 400 to 500 new members daily, Mitchell said. A global concierge service has been introduced, the staff is expanding and a magazine soon will be regularly mailed to members.
"We've targeted one specific niche," Mitchell said. "I really think we're filling a need."
Keith Niebuhr can be reached at kniebuhr@sptimes.com or (727) 445-4156.
BY THE NUMBERS
Its founder calls Affluence.org the "Facebook for the filthy rich."
•20,000: approximate number of Affluence.org members
•55: percentage of members in the United States
•17.6: percentage of members in India
•3.4: percentage of members the United Kingdom
•2.6: percentage of members in Canada
•2.1: percentage of members in Australia
Sources: Affluence.org and Alexa.com
© 2009 Scripps Treasure Coast Newspapers
Is there an echo in here or what?
Wished I could join.
There goes the neighborhood.
Wonder how many Treasury and IRS agents have signed up?
LAME.
Wow. You can chat with people like Madoff!
That so many folks of means would share their financials with such an outfit explains everything about Madoff.
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