As we continue to explore the convergence of digital media and it’s impact on society, one of our challenges is to view the ever-changing media landscape through the lens of optimism. To rise above our sometimes knee-jerk negative outlook when consider our growing reliance on technology and its integration into almost all facets of our everyday lives. We are overwhelmed by headlines about big data as large corporations build their own version of us. One made up of millions of bits of data instead of a heart, mind and soul.

When Facebook Knows You Better Than You Know Yourself

While the big boys like Facebook, Google, Apple, Amazon continue to trample over each other as they try to find new ways to cash in on their stockpiles of personal data, some of the smaller players  are making waves by keeping a tight grip on its users’ data – and investors are taking notice. A winning example of this principled approach is social media network, Nexdoor.

While we spend a good part of our day online, yet it’s our neighborhoods where we live our lives. It’s no surprise that research conducted by Nextdoor.com and Harris Interactive reveals nearly 100% of Americans want our neighborhoods to be a place where we comfortable and most importantly, safe. Yet, the same survey showed that 56% of respondents interact with their neighbors “very little” and only 9% participate in neighborhood watch groups. (Harris Interactive, Nextdoor, The Neighborhood Report, 2014)

These findings bolster Nextdoor’s approach to bring social media to a hyper-local level. While only 2% of a Facebook users friends list is people in their own neighborhood (Keith Hampton, Lauren Sessions Goulet, Lee Rainie and Kristen Purcell, Social Networking Sites and Our Lives, Pew Research Center, June 16, 2001) Nexdoor was created to fill this void by creating a private social network, where rather than connecting circles of family, friends and co-workers, only allows users to connect with others in their immediate neighborhood.

And, while users are building their profiles and communicating with their neighbors about everything – from garage sales to crime reports – Nextdoor is amassing a lot of very specific and useful data about it’s users. Of course, that could mean lots of money for a company like Nextdoor. Yet almost four years after its initial launch, the company still has no revenue generation model.  That’s right – a social media site that isn’t selling your data. Unlike many of its social media peers, Nextdoor continues to maintain its commitment to building strong neighborhoods and protecting the data of its users.

We know that you do not want marketing from third parties just because you join a neighborhood website, so we do not turn over your personally identifiable information to third party marketers without your express consent.   Nextdoor Privacy Policy

But that’s not to say Nextdoor isn’t going to change its tune. In March, 2014 Nextdoor was evaluated at $1.1 Billion as it raised $110 million cash injection from venture capital firms.  That of course is speculation that CEO, Nirav Tolia will indeed find a way to turn it’s membership of 53,0000 U.S. neighborhoods into a cash cow. But it’s clear that the company is taking baby steps because privacy and the trust of its membership is one of its top concerns. Instead of a mass sell-off of data, Nextdoor is trying to build a business around a continued focus on the hyper-local.

So what do you think? Can Nexdoor find a way to be profitable while staying true to it’s founding principals? Can they fight the tide? Or, will they jump into the deep end and become yet another social media enterprise with a sole focus on monetizing its data?