It was a good idea — but apparently, Yahoo! didn’t think it was worth keeping. The social networking widget My BlogLog will be shutting down by January 2010. The service was actually innovative. It allowed bloggers and readers to “meet” their blog visitors, by letting them view user information and even profile pics. For many bloggers it was a chance to really study their fanbase and even connect to them on a personal level. It also had the potential to be a really powerful marketing and research tool.

Yahoo! first acquired the technology for this 5 years ago, when it bought it for $10 million. Unfortunately it did not invest in MyBlogLog any further, considering the rich potential in it. There’s only one word for that — STUPID. Marketers spend millions trying to get a hold on their consumer’s demographic and psychographic information. The data becomes even more and more crucial now, considering how crowded the market is with websites competing for people’s attention. Be relevant or be forgotten is the blogger’s motto. MyBlogLog helped them stay relevant, without having t spend millions on some nationwide survey.

Yahoo! had a great tool (possibly one ahead of its time) but instead of nurturing its profit potential (we assume that money is the reason for its cancellation) they kill it. DUH. No, double-duh. That’s like slaughtering the golden goose because you don’t have money to buy it food.

The news is bound to have bloggers up in arms, or at least, slapping their foreheads in disgust. Yahoo, what are you thinking?