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A word of caution to the industry.....Attorney Generals are now looking closely at SN sites. The Microsoft deal for $250 Million woke them up to seeing MySpace as a huge target for fines related to these kind of activities.
Backround check firms certainly frequent the www.SocialNetworkingConference.com in Miami. Most have business models of USD $3 to $5 per user signup. That adds up to millions quickly. Most SN execs I deal with won't engage in Background search unless forced to (via legislature).
Therein lies the scare. These firms are talking with various legislators. While the SN industry does as well. They will need to go to 50 state legislatures, plus US congress.
The strategy of the background check firms is to get one US State to pass the bill. Then, it doesn't matter. Once you have to adapt your systems for one state, you might as well do it for them all.
The industry really needs to get together from a PR perspective or a "Protect the Children Act" may end up in a State Legislature for vote during an election season.
Marc Lesnick
Conference Organizer
Social Networking Conference
Jan 31-Feb 1, 2008
Miami Beach Convention Center