however, as others have mentioned on HN, by reducing friction you increase the amount of "tyre-kickers" - people who just want to check things out and leave.
that's not such a bad thing if your cost-per-user is negligible, or you have some kind of post-signup campaign in place (e.g. an email after inactivity that tries to "reactivate" the user).
in those situations, the more people you can expose your company to, the better. I'd wager that many startups don't implement Facebook signin because of the engineering overhead that could be spent on sexy new features.
It depends on your execution.
In general, reducing friction will increase signups. That's hard to argue against. The only situation where reducing friction will reduce signups is where you seemingly reduce perceived value by doing it, but again, that all depends on execution.
Facebook connect sign in could be executed in a couple of ways:
1) Click a Facebook button. Click approve. Boom, you're registered in your app.
2) Click a Facebook button. Click approve. Get redirected to another signup form and have to fill in more data. Click "Send". Oops, there was an error with your form input, please enter a valid email address. Fill in data. Click "Send".
I can say with confidence that (1) will increase signups, but (2) will hardly move the needle.
It depends on your execution.
The problem was we did not test the actual login, just having the option. The client did not give us details on revenue/turnover or hoe many people actually used login of facebook.
It was a health product on the US market.
How much time is really spent integrating FB Connect?
I haven't looked into the API or what it takes to integrate it, but I assumed (bad habit, I know) it wouldn't necessarily be rocket science. Aren't most API's relatively simple to use compared to the actually building of an app?
Plus, if it causes a huge increase in users and tire-kickers, it seems an app would get more chances to show off their sexy features anyway.
I think the most non-trivial thing would be integrating with the current site sign-on. Issues such as an existing users that decide to sign on with facebook (which is linked to a different e-mail address) could become a problem on the backend.
I'm extremely turned off by sites that want me to sign-on, with the only option being Facebook, because I've had enough of sites demanding irrelevant permissions they obviously don't need (you need my email, not to be able to post to my wall). If I really want to sign up for something I'll do that and 'fix' the permissions in Facebook but it really peeves me.
Clearly there are lots of caveats, and the results of any experiment are going to be informed by your site, audience, and so on.
Have you implemented or thought of implementing twitter's Oauth functionality instead? I wonder how that'll work out for you.
I agree with you that sharing your Facebook credentials or your email credentials (especially your email credentials) with another site is foolishly stupid.
e.g. Huffington Post asks for basic info (name, profile pic, gender, user id, list of friends and then some), access to my newsfeed, interests and likes, and my current city .. this is only to comment on a post .. it seems like overkill to me and as a result i wouldn't really use facebook connect in this instance.
I don't get many return users from it but I do get some extra information which is useful in my case for statistics.
I am currently moving away from RPX in favor of using the services for Facebook and Twitter directly so I can do more with the user and with the data.
Only geeks are annoyed by the classic registration forms.
As for why not use OpenID? Personally, I don't want to tie my Gmail account to a lot of things -- then people have my email! I don't necessarily want to tie my Facebook to them, either, but in the same breath some forms of OpenID can end up sharing more, depending...
This is why I get cranky when people implement Disqus, too -- old comments I made that were supposed to be anonymous but which had my email for the author, etc, are now pulled in and linked to a general identity months or years later. :(
(not criticizing BTW, just curious)
Kevin