With an immense user base, Facebook undeniably dominates the social media landscape. However, relentless competitors are undeterred. Sizable entities and fledgeling startups alike are bringing the heat, challenging Facebook’s long-held monopoly.
In a phenomena colloquially referred to as the “Great Gay Facebook Exodus,” thousands of disgruntled consumers – from various demographics, not limited to members of the gay community – have been deserting Facebook. Their primary point of contention is Facebook’s stringent “real name” policy and pervasive advertising. Embracing one of Facebook’s competitors, a relatively new, invitation-only social network named Ello, has increasingly become the resolution for these dissatisfied users.
Ello’s rapid ascension also informs a valuable lesson for all businesses, particularly smaller start-ups: disgruntle your customers at your own risk. Consumers now, more than ever, are receptive to alternative options. As you scale, you risk losing what made your small business unique. The success of grassroots movements like Occupy Wall Street provides a clear testament to the increasing intolerance towards domineering companies, and a growing willingness to back riskier, but more appealing alternatives.
“As it turns out, Ello was founded by Paul Budnitz, an iconoclastic entrepreneur and founder of online retailer Kidrobot and Budnitz Bicycles. Despite Ello’s recent launch this summer, its exclusive invitation-only model has skyrocketed its popularity, with reported user sign-up requests reaching up to an impressive 31,000 per hour.  Paul Budnitz, Founder of Ello
Facebook recently attracted immense criticism from the LGBT community members. The backlash results from Facebook’s rigid “real name” policy, which was seen as discriminatory towards individuals, particularly transgender individuals, who prefer to use chosen names for a variety of valid reasons.
However, Ello is standing as a stark contrast to Facebook on these issues. Ello has no “real name” policy, and presents a minimalist, ad-free user interface. It also projects a rebellious aesthetic with a blackened smiley face logo that shares uncanny similarities to the hacker group, Anonymous.
Ello’s manifesto furthers its divergence from mainstream social networks. It reads:
“Your social network is owned by advertisers…We believe there is a better way. We believe a social network can be a tool for empowerment… You are not a product.”
It’s fascinating to see that Budnitz’s alternative network seems to resonate more with the LGBT community compared to larger platforms like Google Plus, who even overturned its real name policy recently in response to activist complaints. Google Plus missed an opportunity to appeal to a new user base, but it seems Ello has reinforced its messaging with the exact user group ready for a change.
“LGBT people are not followers of the mainstream,” says Howard Buford, managing director of Quorum Consulting. “LGBT is all about bucking authority and flying in the face of authority…”
This article was updated in 2025 to reflect modern realities.
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