Start an Internet Business Exclusively on a Social Media Website?

Peer to Peer Loans are an old concept – now being applied online using both the power of community and the promise of enticing financial gain. Peer to Peer lending allows you to borrow or lend directly with a person, typically at better rates then with a bank. Web sites like British-based Zopa.com and Prosper.com, which has been featured in a variety of media, are becoming well known for creating an online “lending community”. The marketing message for Peer to Peer Lending relies heavily on the human touch…”why allow banks to make all the money when you can give it to someone who can help you?” states one of the ads. This message appeals to those who seek a sense of community and have an aversion to “big business”.

If this is the case, then launching a “lending community” on a social media website makes a lot of sense. Enter LendingClub.com operating exclusively within the Facebook.com interface. Although you can reach LendingClub.com via the public internet, in order to participate, you must add the LendingClub application to your Facebook profile.

Is this the next step in harnessing Web 2.0 technology for commercial purposes? The folks at LendingClub definitely think so. It will be interesting to see the progress of this venture and what trends it will spawn.