There are pushes to minimize the need for passwords, but after the Gawker leak fiasco who wants to have a common shared single point of failure for passwords? Sure managing passwords sucks. But friction is a tool that helps cleanse demand & make it more pure. It is why paid communities have a higher signal to noise ratio than free for all sites. Any barriers will annoy people, but those same barriers will also prevent some people from wasting your time. If they are not willing to jump through any hoops they were never going to pull out the credit card.
37 Signals recently announced they were retiring their support of Open ID. At the opposite end of the spectrum, eHow just announced they are requiring Facebook logins:
We have some exciting news to share about eHow.com. Beginning in February 2011, Facebook Login will be the exclusive means for login to the site. You’ll be able to use your new or existing Facebook username and password to connect with the eHow community. We’ll also be removing eHow member profiles to help you streamline friend lists and eliminate the work of managing multiple online accounts. Additionally, we’ll be closing forums on the site. We want to hear from you directly, so moving forward, we encourage you to communicate us through the “Contact Us” section of eHow.com.
We’re excited to introduce these updates! Get started and click on the Facebook Connect button in the upper right corner of the home page to login. We want to keep in touch, so also remember to Fan Us.
My guess is they might be trying to diversify their traffic stream away from search & gain broader general awareness to further legitimize their site. But the big risk to them is that Facebook is an ad network. So now competing sites will be able to market at their base of freelance employees. What’s worse, is that there was a rumor that Facebook might plan to launch a content mill strategy. There are plenty of ways for that third party login to backfire.
My believe is that you shouldn’t force logins until you have something to offer, but that when you do you should manage the relationship directly. Does that mean you have to reply to every message? No. But it does mean that if there are ways to enhance value through how you interact with your established relationships you are not stuck under the TOS of a 3rd party website which may compete against you at some point. Sure that means some upgrades will be painful, but it means that you get to chose when you do upgrades rather than letting someone else chose when your website breaks for you.
I view third party comment systems the same way. If the person providing the service changes business model it does not mean you are stuck paying whatever rate they want or starting over. This is one of the big advantages of owning your own domain name and using open source content management systems. You don’t have to worry about a Ning pivot or a Geocities shut down. Sure this approach means you have to deal with security, but then leaving that sort of stuff to Facebook might not be great anyhow.
More: continued here