How to Kill a Great Idea! The Jologs Killed Friendster

Link to article.

So it seems that the Filipinos caused the business failure for Friendster :))

Excerpt:

Meanwhile, scant attention was paid to Friendster's users. Lunt remembers marveling sometime in early 2004 at how Friendster's traffic would mysteriously spike at 2 a.m. Intrigued, he started looking at the site's log. Oh, my God, he thought, everyone is from the Philippines. He worked backwards, looking for "patient zero"--the first American to "Friendster" a Filipino. He found Carmen Leilani De Jesus, a 32-year-old marketing consultant and part-time hypnotherapist from San Francisco, the 91st person to join Friendster. She was directly connected to Abrams as well as to dozens of Filipinos, who'd in turn connected to thousands more. In fact, more than half the site's traffic was coming from Southeast Asia.

From a business standpoint, the revelation was devastating. Friendster, it turned out, was paying millions of dollars a year to attract eyeballs that were effectively worthless to its advertisers. Says Abrams: "We needed to make a tough decision"--either spin off the Asian business or become the No. 1 Filipino social network. But because the Filipino users had come by way of their American friends, there was no easy answer. If Friendster cut the cord to Asia--either by drastically cutting back on engineering resources or by kicking the Asian users off the site altogether--it risked damaging its American user base. The Carmens of the world might look for a less restrictive site.