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David Sacks, Yammer co-founder, on the company's enterprise software model, which creates social networks for companies.
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On with a thank you have a nice weekend -- -- -- a leading as well.
What do you could be on FaceBook all day at work actually let me rephrase that a little bit.
You're on FaceBook all day at work but what if He could do so without worrying about your boss finding out that's the idea behind here -- -- They both social networks for companies He is just some of the companies that use it by the way and there are some big names on here as you can see so many companies.
Have bought into a you know you never co-founder David Sachs as a track record.
For game changing startups He was a founding partner of tape Connie joins us now.
I dated a little tongue in cheek there in the intro it's not exactly FaceBook but right you -- has a lot -- With FaceBook doesn't.
Yeah so -- see ever is a social network for inside your company it's an enterprise social network this is at a price offer that's owned by the company they control it so it's not like.
Rogue employees going on FaceBook this is something that is walked down and -- -- the company.
The whole although.
Why are we moving in this direction because -- there are states supervisor is one of the companies and even a lot of other fortune 500 companies that are buying in do it.
Why are we heading in that direction and not to stand with the old tried -- email and other ways of communicating within the office.
Well you know there's over 800 million people on FaceBook right now what's like this absolute communications.
Phenomena and it's the communications -- -- of our time and I think there's this tremendous thirst to bring this new form of communicating.
Inside the workplace as well.
You know I'm.
What does it do that I can't do already with what they are the tools that I already you like an email for example.
Well this is a very efficient way of communicating with a lot of people -- company with email you have to know exactly who you're sitting message to with him -- post a question.
Get an answer for -- on the network you can share news links information.
It's very easy to share with much larger group of people planted some of these companies and applauded.
-- -- we're talking about -- Mean Supervalu.
Tight goes southern company -- Thomson Reuters nationwide.
Right these are big companies that have been around for awhile how difficult is it to go in and sell a new IT product that isn't isn't -- a new product but it's -- a new idea a new -- -- Well there are a lot of the questions we have to answer around our alliance security and we've been through that process -- what the wind at our backs here is that the employees want this -- they're the ones for bringing -- inside these enterprises.
And so it starts in this very bottom up way where the employees bring an end and then the company realizes.
What opportunity concerned is how it's really.
Improving engagement and communication among their employees and then they officially sanctioned and and and -- the product.
There you can see some of the company's right there three years in the making it seems to me.
And I I asked about the celebrated seems to me like this has been an expedited process from the start up strictly a high tech start up to.
Being in with all these companies how -- been -- so quickly.
Well it's it's the -- the of the product fact that any employee can to sign -- start using inviting their coworkers and then the company can pay top -- that to the premium version and essentially take control over the network -- -- that's a lot of us to spread.
A -- like consumer product what he's not but you know again -- this is enterprise software so we're attacking the enterprise suffer space in this completely new way.
If I could to continue to like it -- for the -- the one of the big challenges that face particularly as they either -- PO.
How do you value FaceBook and in order to value FaceBook you've got to the value of the cash flows coming yen and how do you look have you worked out model where you actually get paid.
For the -- right.
So that is one of the big differences in our model is that FaceBook is their models based on advertising and our model is based on employees or companies pain.
Up for a seat license for their employees to use apartments up.
We actually get paid directly for usage of the product which is a great great -- -- well.
It's called -- -- eight years now agreed to co-founder of jammies yup sort of you've got a lot of already PayPal right you know which of course what eBay bought right that a lot of people on your board from FaceBook so that obviously -- it has to has to help in terms of everybody be having these expertise and worked on some of these types these products.
Before that started small -- and -- Yet a lot of sort of cross pollinated DNA social -- the coming present a FaceBook is on our board directors small -- -- just join -- -- faced executive for five years.
Our first investors Peter -- -- was Facebook's first investor so there's a lot of a lot of fees for DNA in our company.
Alright David great stuff thank you so much -- mentioned thank you buy the product has never taken out.
All -- certainly finding some success with a new company up next find out how you can experience entrepreneurial success of your own.
Eric Reeves author of the -- -- start up is next right here on Fox Business.
