[egiva]

No takers yet on your question?

If you're starting from scratch, the cards are stacked against you - why spend your time and resources competing in a saturated market? It would be far better to focus on another product idea, and that's probably the best advice you'll get.

Not to be a pessimist though - a truly unique idea that will compete with Facebook will improve access, or improve content. They probably have you beaten on access and can outspend just about anyone, so you'll have to focus on content by choosing a small sub-section of society, and making a very tailored product that appeals to them.

Random examples: a product that appeals just to Subway store owners, or something just for rodeo clowns. What about a companion product for the One Laptop Per Child project directed at markets where Facebook is less developed? Pen + Paper + Imagination = good ideas.