Mashable and others have been reporting that the venerable Classmates.com site is now about to do an IPO (initial public offering), at a valuation of $125 million. Started in 1995, Mashable’s Pete Cashmore says Classmates deserves credit for being the first social network, begun two years before the now-defunct Six Degrees.

While it may seem old, dull and boring to the digerati types (and it’s not Facebook), Classmates might still be pretty interesting to average users, if they are smart about making the right enhancements. I like Classmates; they continue to be slowly but steadily adding folks from my school classes. I’ve only communicated with a few, but think the site still fills a viable need (I’ve had virtually NO success locating anyone my age - 44 - on Facebook or other networks yet), and they’ve got the market share/critical mass to make it work.

As others have noted (generating considerable controversy), the big social networking sites like MySpace and Facebook appear to be attracting different sorts of users. While Facebook is now pulling in a lot of older technically-inclined users, the large bloc of non-technical older Americans is pretty much being left out. Obviously Classmates is too specialized to serve all their needs, but it’s the kind of simple and inviting format that would likely appeal to a lot of average folks.

My main complaints are with the pricing and the speed of the site. Classmates needs more functionality to be free and to get away from the True ads, which seem to be their main advertiser. I suspect if the site were faster to navigate and search, folks would spend more time there. Monetizing a site nowadays with AdSense, etc., generally isn’t too difficult, so I don’t see why they couldn’t offer more free functionality and still be viable.

Of course, any school-oriented site should have plenty of ways to generate well-performing ads (though even Facebook doesn’t seem to have succeeded at this, yet), but I suppose Classmates could also keep their paid subscriptions. In the several years I’ve used Classmates, I haven’t seen many people going this route, because you have to pay so much up front just to try it for a short time.

If sites like Classmates are going to have a paid subscription model, then they should by all means offer a less costly middle tier (above the free tier) and segment their market between those who don’t mind paying $20 or more to try out a site that may (likely) disappoint vs. those of us who aren’t willing to risk much until we know we’re going to get our money’s worth!

As with any social network, the key is users returning to the site on a regular basis (Facebook’s strength). Classmates is good about sending weekly emails announcing new members from your classes, but the site is slow to load and navigate, and when someone does try to communicate with you, you can’t even see it without paying a considerable amount for a subscription.

Obviously, basic communication features should be free. Maybe subscriptions could add the option of a blog page or other customization, the opportunity to have a page for that particular class, etc. There are so many possibilities, the site ought to be worth $125 million, considering the number of users (50 million) that they’ve signed up.

A few other ideas for added functionality (maybe some of this exists already but could be enhanced and made more visible):

  • Stores for sale of school related merchandise (shirts, stickers, etc.)
  • Alumni association pages. My high school’s alumni association has become much more active and is now even conducting a campital campaign to raise money for improvements! With the internet, these activities are much easier to do, and a site like Classmates provides a key ingredient - finding and keeping in touch with people.
  • As I’ve written about elsewhere, it’s still VERY hard to locate your former teachers, and Classmates already offers this functionality (membership for teachers, etc.) but it’s almost completely ignored. They need to make a push to sign up teachers, which I suspect would stimulate a lot of other interest, and maybe a fair amount of free media coverage.

As I hinted at above, I find Classmates interesting in part because it’s so different from the sorts of things that the Silicon Valley crowd get excited about. The Valley folks have brought us a lot of good things, but also have some huge blind spots. A large part of the country is moving MUCH more slowly onto the internet, and there’s still not that much available on the net for for folks who didn’t grow up using it.

Classmates isn’t Facebook, but I really believe that there are still a lot of great business opportunities on the net for serving older folks (which, as far as the internet goes, is pretty much anyone over 35). Even though they have a lot of disposable income, many of these users are still fearful of doing too much, of making purchases online, etc. Sites that seem stable and “safe” have a certain appeal that a wild and woolly site like MySpace could never offer.